Dear Today’s Sandwich Generation Workers, Are You Sure You Can Be Established?

Jakarta, Armfalcon.com – The Coordinating Minister for Human Development and Culture (Menko PMK) Muhadjir Effendy said that the majority of workers in Indonesia are the sandwich generation or people who have to support themselves, the upper generation (parents) to the lower generations (children).

“I haven’t found an exact number yet, but we can make sure that the majority of our labor force is the sandwich generation. What does that mean? When he works he has to support the upper generation, starting from grandparents, fathers, mothers,” he said at the peak of the Labor Day Celebration. International, broadcast on the YouTube channel of the Ministry of Manpower, quoted second Tuesday (2/5/2023).

One thing that is worrying is that when a worker is laid off or becomes unemployed, it is not only himself who falls into poverty but also the people who are his dependents.

With sizable expenses, relatively mediocre income, and low financial literacy, it will be very difficult for sandwich generation workers to achieve financial independence.

So what is the financial management solution for workers with mediocre incomes and the status of the sandwich generation? Here’s the review.

Prioritize to increase income

Income, of course, is not only adrift of monthly salary. Sources of income can be obtained from anywhere, such as from side jobs, side businesses, or from investments.

However, the amount of savings is still too small, and is often used for short-term and emergency needs, so a side job or finding a new job with a better salary is the solution.

To make it easier for you to get a new job or find a side job, you also need to update your knowledge and skills.

Take advantage of the time you have outside of work hours to study, so you can make this happen ASAP.

Emergency fund with a larger amount

When layoffs occur, your income as a breadwinner will simply disappear. However, household expenses will still exist, as well as debt repayments if any.

It is very important to provide an emergency fund with a larger amount, say above six times the monthly expenditure to anticipate this unwanted thing.

You can start by setting aside 10% of your income each month, and allocating all or half of the holiday allowance (THR) for an emergency fund.

Protect all family members with BPJS Kesehatan

If health insurance is considered very expensive, BPJS Health can be a solution to protect family finances in the event of an illness.

Without health insurance, you will spend your personal money for treatment. This is actually very risky because your emergency funds can be drained due to expensive medical expenses.

Invest after there is an emergency fund and health insurance

Invest when your finances are secure, in the sense that you have sufficient emergency funds, and have health insurance for all family members.

Without good financial security, you may be forced to sell investment assets if you are hit by a disaster.

If financial security has been created, focus on investing to realize long-term financial goals first, such as a pension fund or children’s education fund.

Educate all family members about finances

Of course, all family members must have a good understanding of finances, because they are the ones who will help you become financially independent in the future.

With good financial understanding, they will understand very well what support they can provide to the breadwinner.

[Gambas:Video CNBC]