There’s a high number of sandwich generations in Indonesia. It’s only natural, as our country has a strong family and kinship culture. Even after marriage, we still have an obligation to take care of our parents.

From a financial perspective, this generation has more dependents because they must support both their children and parents. A lot of them must also pay for their younger siblings’ tuition.

As a result, they would have a hard time sparing some money from their salary. Let alone having an entertainment budget to go to the cinema or family vacation, even saving up for their own children’s education fund becomes a challenge. On top of that, they also have to make an effort not to turn their children into a sandwich generation like them.

Don’t worry, because every dilemma has a solution. The main key for a secure financial condition is no other than the right financial planning. To implement it, there are some steps you need to do:

Develop a financial plan

If the cash flow ratio is unhealthy, you and your partner need to make or rearrange your financial plan.

First, record all expenses from your own household and your parents along with other family members you’re supporting. This note is important in determining the next step. You can reduce or even eliminate the less important posts in your budget.

Afterwards, you can manage your income with a method that suits your abilities and financial plan. Some samples you can refer to include the 50 - 30 - 20 or 10 - 20 - 30 - 40 principles.

Increase income

Looking for additional income is a basic solution that must be done immediately if your expenses always exceed your income. You can try to find a new career with a higher salary or do a side job.

With additional income, you can spend part of it for future needs, such as pension funds along with your children's education funds.

Live together

You can save money by staying under one roof with your parents. At first glance, this method is a step back for those of you who want to live freely and independently.

On the other hand, your expenses will be reduced significantly. For example, you no longer need to pay monthly expenses for two families or pay electricity bills for two houses.

If you have two residencesproperties, try to use one of them as a passive income asset. You can rent out your property for long and short term, or even turn it into a boarding house. That way, you can get additional income.

Choose your debt

In times of urgency, many people get a loan without thinking about the long-term effects. If you need to be in debt, using a credit card or through any loan, make sure that the amount of debt is within your ability to pay them.

Keep in mind that the allocation of funds for installments or debt may not exceed 30 percent of your income. If it’s within your capability, it’s better to choose productive debts such as buying a house or anything with an investment value that can increase over time.

Get insurance

To break the chain of sandwich generation, you need to have self-protection in the form of health and life insurance. The goal is to avoid disturbance in your cash flow and savings by financial risks arising from disasters, such as falling ill or getting into accidents.

Not just that, you and your partner also need to prepare pension funds early for your old age. That way, you can still live life and enjoy old age without putting a burden on the next generation.

You can make everything come true with Brilliance Spektra Invest from Sun Life Indonesia. The insurance and investment program not only provides financial protection, but can also help you realize all financial goals until you are 100 years old