Please welcome the Sandwich Generation. A term for those who are married but must still bear the financial support of their parents and/or their siblings. This generation certainly must prepare for a better and planned financial plan. Otherwise, it can be financially chaotic and even make your future frivolous. If You’re one if them, here’s some tips on wisely managing your finances:
Determine the Priority Scale
Priority scale is very important in every financial plan. Determine the priority scale to find out what points should be prioritized for expenditure each month.
If you are confused about how to prioritize something, it is strongly recommended to prioritize your nuclear family needs first. Not only that, education about managing finances is also mandatory for parents. So that they can manage the money they get from their children. Even better if they then think of trying to earn their own income in old age.
Arrange Monthly and Annual Cash Flow
After determining the priority scale, now is the time for you to compile a monthly and annual budget in the period of one year ahead. The general financial posts that need to be compiled are debt repayments, savings, routine family expenses, and personal expenses.
As is known, in addition to the monthly fees that are routinely issued every month, there are also annual fees that come once a year such as holidays, extension of vehicle registration, and possibly the cost of renovation. Make sure you arrange and try to stick to this guide so that your flow of expenses doesn’t swell.
Perform Annual Check-Up
We need to conduct annual checkups on financial conditions to determine the condition of the “health” of our bags and what steps need to be taken to improve these conditions. By knowing the financial condition, you can find the one that require more budget or financial posts that can still be remedied. Therefore, this step is also accompanied by determining the priority scale.
For example, if your child is under five years old and parents are entering old age. That is, you still have more than 10 years to save on tuition. Meanwhile, parents who enter old age usually often fall ill. So what you can prioritize right now is health funds for parents.