UM Surabaya Economic Expert: This Is So the Sandwich Generation Has Healthy Finances

• 08 Dec
• 2022

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UM Surabaya Economic Expert: This Is So the Sandwich Generation Has Healthy Finances

• Article
• By Uswah Sahal
• Economy
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The recent generation of sandwiches is hotly debated. The sandwich generation is a generation that shows the identity of a person with a double burden in terms of finances. Namely not only supporting his own needs but also having an obligation to meet the needs of others, such as parents and children into the future.

How can the sandwich generation manage finances so well because it supports many people at the same time? UM Surabaya economist Arin Setyowati shared a number of tips so that the sandwich generation can balance needs.

According to Arin, the first thing to do is to allocate income wisely. In allocating income, you can use the 50/30/20 formula or you can also use the 40/30/20/10 formula to manage income.

The details of the two formulas are that if 50 percent of income is allocated for needs (eg monthly spending, electricity and water bills, installments and others), 30 percent is allocated for entertainment, 20 percent for insurance, and 10 percent for savings.

"Or if you use the 40/30/20/10 formula, then 40 percent is allocated for monthly needs, 30 percent for obligations (pay arisan, installments), 20 percent for savings, and 10 percent for charity or other kindness," said Arin Thursday (8/12/22)

Second, looking for additional income alternatives. According to Arin, while there is still active income, you can prepare passive income to support yourself and your family. For example, by becoming a reseller to a freelancer, or starting a business in an effort to create an additional source of income.

Third, placing finances on safe investments and prospects. Apart from saving, investing is the most efficient alternative to turning our idle funds around by bringing in profits.

"Of course by doing a strict selection of investment instruments that we will choose so as not to lose. Investment instruments that can be selected include; retail sukuk, bonds and others," he added.

Fourth, prepare self insurance, both retired and health. In the midst of uncertain conditions (volatility) and the optimum limit of human physical and psychological abilities, it is necessary to think early on self-insurance for both health and retirees to minimize the risk of future events.

"Finally allocate for emergency funds. This fund will become a reserve fund to cover unexpected conditions that are needed in a short time or at the same time, "concluded Arin.