The sandwich generation is those who are in the middle between parents and their children, so they have multiple financial conditions. This means that you have to finance three posts at once. That is, a level above them, themselves and their children as a form of responsibility.
Even though there are many posts that must be taken care of, the necessities of life continue. Including vehicles, both two-wheeled and four-wheeled.
Quoted from the official release of Astra Life–part of PT Astra International Tbk, a national company which has 272 subsidiaries including those in the automotive, financing services and insurance sectors– as received by , entering the end of 2023 is the time to evaluate and improve conditions finances and prepare for the next step.
Illustration of buying a car [Shutterstock]. Of the entire sandwich generation in Indonesia, the majority, 88.1 percent, choose to save to maintain their assets and as many as 69.8 percent have invested in various instruments such as precious metals (31.7 percent), mutual funds (21 .6 percent), shares (16.5 percent), deposits (14.9 percent), and others (7 percent).
Data on the sandwich generation’s awareness of saving and investing could be a breath of fresh air to be able to pay attention to other things related to financial health indicators.
“It is important to have short-term and long-term life goals in order to be committed and try to maintain financial health, so it is important to know various indicators as a whole starting from cash flow, assets, debt, emergency funds to life and health protection needs, because they can be mutually exclusive. related and can be a provision for the following year,” explained Windy Riswantyo as Marketing, Alternate & Direct Business Group Head of Astra Life.
Here are five indicators to improve financial health as follows:
1. Maintain positive cash flow
Apply style It’s okay to live frugally, as long as you don’t be stingy for yourself and your family.
For example, to fulfill your daily nutrition, you have to pay attention so you don’t get sick and end up paying quite a lot of money for medical expenses.
Budgeting is very necessary, record your daily expenses families can analyze subtle leaks in monthly expenses. Next, so that cash flow remains positive, you can start thinking about ways to increase your income by improving your skills or career.
2. Pay off consumer debt wisely
Complete the debt that has been started. As much as possible, reduce consumer debt so that it does not hinder other financial activities.
What is wrong and commonly encountered is paying off debt by going into debt. So the debt will pile up even more.
If you want to buy a motor vehicle, first check whether you have completed the previous installments or debts.
3. Maintain the effectiveness of emergency funds
As good as financial planning is, there are risks that can threaten failure to achieve financial goals, such as repairing damaged assets or being affected by Termination of Employment Relations (PHK), so it is important to have funds emergency.
Ideally, the size of your emergency fund is three to six times your monthly expenses, because it usually takes a person three to six months to find a job or a new source of income if they are laid off.
4. Life insurance for breadwinners
Apart from the risk of being laid off, there are also more serious life risks which result in stopping your source of income, such as getting a critical illness or dying at an early age.
It is important for income earners to have life insurance before making an investment.
If husband and wife both work, each needs life insurance that can be adjusted to the portion of income they earn.
Can be calculated according to insurance Sum Insured (UP) requirements using the Income Replacement Base (IRB) formula or by calculating UP based on the average income received per month and combined from both husband and wife and then accumulated over a period of time per year and multiplied with a funding period.
The hope is that the insurance sum assured will support the heirs until they become financially independent again and continue dreams such as meeting children’s education costs.
Currently, Astra Life provides access to buying insurance as easily as shopping on e-commerce via ilovelife.co.id.
Accessing insurance online could be another option if you don’t want to meet insurance marketers. Even accessing insurance online also has the same transparency as transacting with marketers. Transparency is able to minimize additional surprise costs, all information is conveyed up front transparently.
There is a Frequently Asked Questions (FAQ) page which can make it easier for customers if there are things they need to ask. The fees paid or premiums are clearly listed.
Benefits that can be simulated include room ceilings and premium increases, all types of exceptions that can make customer claims dito
