THE Philippines is not only a nation of adult children dependent on their parents or elders but also a nation of adult children in the sandwich generation.
The sandwich generation is a group of adult children who are building their own lives while still helping out their extended families. It is without a doubt that the sandwich generation may feel more pressure in life as they focus not only on how to survive and build a better life but as well as making sure their parents and siblings-even up to the nephews and nieces-are also okay.
I was asked by my coaches several times how one can still grow money even if there’re a lot of bills to pay. The question here is not the how but why you want to do it? It is easier to keep your money safe and grow because you have a purpose of doing it.
As a rule of thumb, percentages should be followed: 10 percent to tithing or charity; 20 percent to 30 percent to growing and investing your money; and, about 60 percent to 70 percent should be allocated only to expenses. While many have followed this simple rule, there is another way of doing it to make sure that a sandwich generation can fully experience a life to tilt in their favor.
In this budgeting format, 10 percent should be allocated to tithes and charity. If you practice tithing, which I believe is also one of the universal laws on how you will experience abundance, then set aside 10 percent for this every month.
I have also tried tithing regularly for years and, for some reasons, me and family are able to have plenty and we are able to help our families and other people because of this principle. We discover, surprisingly, that we have more than enough.
After setting aside 10 percent on tithing and charity, about 10 percent to 20 percent should be spent on hobbies and others. This budget should help you avoid feeling going over the budget on things you spontaneously splurge your money on. By doing so, you don’t reprimand yourself later.
You can also tag this as a wellness fund, for vacation or travel spend, mental health expenses and other activities that will contribute to your personal growth.
The rest should be spent on daily needs, which is about 50 percent to 60 percent of your total income.
Some would say, nothing is left. So, how can I separate it in percentages?
That’s what I thought so too when I was younger. However, I still believe that if the why is clear, the how is even clearer. You will have that urge to really start any form of savings and investments not only to protect your extended family’s future, but your own future too if your why is crystal clear.
Aside from building savings and investments, one of the challenges of the sandwich generation is dealing with debts. One of the approaches to debt is of course the famous style of dealing with it by paying the high percentage first or the snow ball effect, where you pay the smallest debt first and use that budget to pay of the next in line debt.
Another way to deal with debt is to use your windfall bonuses, you can use the whole amount to pay off the debt or use percentage also to pay a portion of your debts while some portions will be allocated to paying other important and urgent expenses.
Another strategy to paying off debts is to get a portion of the windfall bonuses and double the debt payments especially debts that are on terms, example if the monthly loan amount that you have to pay is P2,000 persos, in the next five years, that is P24,000 a year and if there is a bonus, set aside the next P24,000. In this way, your loan terms are shortened by saving in advance for the loan payments. Who knows maybe instead of 5 years, you will be able to pay the loan in 2.5 years only.
These are just a few things that the sandwich generation face but to answer the question if it is still possible for the sandwich generation to save and invest, I would say it is possible especially when the why is clear. The how, the reason, and purpose will be easy.
Saving and investing is a must, most especially if more than half of your life is already spent on caring for other people, start saving for how you will also take care of yourself in the near future.