In the midst of the pandemic of the spread of COVID-19, the global economy experienced a significant shock. As a result, personal finance was affected. This is especially felt for the sandwich generation or financially squeezed generation to meet the needs of parents and children. To avoid the situation that kept squeezing, especially in the midst of this Lebaran moment, a few more personal financial arrangements.
1. Evaluate income
Financial planning is very necessary for this generation, especially with conditions like this. The distribution of budgets can be very different for each person, but naturally it is as follows: 50-70 percent for living needs; 20 to 30 percent to save; and 10 to 20 percent for entertainment. Make sure in everyday needs there is a budget for parents and children. If more put it into a savings fund that includes an emergency fund.
2. Meet the needs of life as a primary obligation
Needs are the most important expenditure items that must be met first, including the needs of parents and children. If you experience salary deductions, then adjust the needs with the salary received. If not, transfer various other expenditure items such as entertainment posts to daily necessities.
3. Emergency funds are the most important safety net
At times like this, emergency funds have a very important role for survival. Therefore, having an emergency fund is very important, which can be divided into a number of posts such as private posts and parent posts (because the post needs of children have entered the private post). Ideally, an emergency fund is 3-6 times monthly expenses.
4. Avoid purchases by installments
Now, access to various bank products, especially installments is very easy through various online loan applications. However, before deciding to take the installments, make sure the total installments do not exceed 30 percent of the monthly expenses. More importantly, make sure the item is really needed. At this moment there are also many discounts and discounts, do not be tempted and will endanger the monthly budget because the COVID-19 pandemic is not yet known how long the impact will be.
5. Expand information about finance
The sandwich generation does have quite a high financial burden. Therefore, knowledge of the economy, especially personal finance is needed. That way various decisions can be taken more wisely, especially in the midst of the COVID-19 pandemic. If there is a salary deduction but installments continue, then there are several ways you can do. Starting from selling assets owned to looking for various additional income in the form of part-time work or business. If there is more money, make sure not only to save but also invest.