The impact of co-19 on the economy cannot be underestimated. For this reason, reorganizing management strategies for both personal and family finances is very important especially for sandwich generations in the current pandemic season.
You sandwich generation has a financial burden that must be shared for personal and family must be being hit with various worries because of the negative impact given by covid-19 on the current economy.
Seeing the various companies that have to cut salaries to lay off many employees and various other small businesses that are out of business, making you inevitably have to be able to prepare financial conditions for the worst things that might happen either as employees or entrepreneurs.
Do not know when the covid-19 pandemic will be completed, it would be wise for you to start managing strategies on how to manage your finances for the sake of financial conditions that remain stable with the worst risks that threaten. Here's how to manage finances for sandwich generations in the midst of the current co-19 pandemic.
1. Evaluate Current Income Sources
For those of you who earn monthly income without any deductions, you may not feel the need to bother, but remember that there are various possibilities in the future, and the risk is getting higher because of the pandemic season.
Whatever your source of income be it as a trader, freelancer or employee. The risk of a drastic decline in the pack can occur at any time especially at a time like this. So to prevent the worst possible it is better for you to change spending items a little in your financial planning.
For example your expense item is: Living - Saving - Parents - Entertainment
For today's vulnerable conditions, it should be changed to: Living - Saving - Parents - Emergency Fund
In a pandemic like this time, the money should be used for more important needs both for daily needs and for emergencies in the future.
For those who are already married, can reduce the saving post a little to be passed to the emergency fund if there are sudden household needs so that your savings can remain safe and stable. And because it is difficult to go anywhere because the PSBB rules in many places, can take advantage of this opportunity to save even more.
2. Avoid Purchases with Installment Systems
Postpone the desire to have a new cellphone or other items that are considered not too important, even though there are payment options that have installment system. For pandemic conditions like today, saving money and saving any money is far more important than buying something tertiary.
Even if you have saved or prepared funds for it, it is better to postpone it until the critical period of co-19 is over. Better to save a credit card or anything that can trigger the desire to shop far away from your reach. Even if it is an emergency, it is better to use it to buy daily needs.
3. Look for Additional Income Sources
For those of you who work in companies that are experiencing the worst economic crisis because of this pandemic season, they must experience salary cuts and even risks in future layoffs if the covid-19 problem is not finished. You should consider trying a new source of income.
Business opportunities arising from this pandemic have turned out to be quite profitable. Food delivery services, fast food, or selling frozen food online can be an example of a business or side job that can be tested at times like this.
4. Reducing unnecessary purchases
This purchase can be anything from items that are used daily to food that can be consumed every day. If for example you spend around Rp. 500 thousand for needs such as toiletries. It is better to reduce it to Rp. 300 thousand by reducing the cost of soap and shampoo.
As long as you work at home and don't go anywhere, so the toiletries won't run out as usual right?
Likewise with other costs that do not need to be incurred because you do not leave the house you can allocate to savings, or made into emergency funds such as funds for transportation costs for work and food costs outside.
5. Set aside Remaining Money for Investment
If your salary still leaves quite a lot even after it has been allocated to your various expense posts, it should be used as an investment rather than shopping online.
The Importance of Preparing Emergency Funds for Crisis Situations
In these troubling times, you must throw away consumptive behavior and allocate more money for savings and emergency funds. Given the risk of layoffs, businesses that are quiet even bankrupt have a high enough risk in the current pandemic.
Especially for the sandwich generation where you have to share income not only for your own needs but also for your family or parents. Remember the more expenditure items means that you have to be smarter in managing and using your money.