There are various kinds of expenses, one of which is unexpected expenses. As the sandwich generation with many dependents, it's important to be prepared to deal with unexpected expenses. What are some common examples of unexpected expenses and what can you do to deal with them?
The Sandwich Generation May Have to Deal with These 4 Common Unexpected Expenses
1. Medical emergencies
We certainly don't want something bad to happen to ourselves or our families. However, we cannot predict what will happen to us. Events that require medical treatment here are events that take place without us being able to predict in advance.
For example, while on the way home from work we have an accident. Or, a family member is diagnosed with a disease even though there was no previous history of illness at all. The sandwich generation that bears the cost of living for their parents also needs to be on guard because given their age, older people are more susceptible to disease.
2. Loss of main source of income
By working we get income and this income is what we use to meet the basic necessities of life, pay for various types of expenses and of course, put some of it into savings.
But, what happens if we lose our main source of income? Companies that are struggling may be forced to lay off some of their employees. If you get laid off, then you will lose your main source of income.
Then, if there is no source of income, how can you fulfill your daily needs properly, especially if you have to pay for the needs of many family members? Keep reading to find out how.
3. Unplanned travel
An unplanned trip is a trip that is sudden and must be done immediately. So, the trip in question is not a tourist trip. If you want to travel abroad as a tourist, then you can plan ahead and start setting aside money to save every month.
So what is this unplanned trip like? For example, if a relative from out of town is seriously ill. You or your parents have to take care of them because they live alone. This out-of-town trip costs money and is not something that is pre-planned.
4. Home repair and replacement of items at home (only the major ones)
Having your own house will definitely cost you money. You need electricity to be able to carry out daily activities at home. For this, you have to pay the electricity bill. You also need to take care of the house, for example by repainting it every few years. This is a predictable expense.
However, it is different when you have to repair the house because some parts of it are eaten by termites or there are parts damaged by strong winds. Another example is a refrigerator that suddenly breaks down even though yesterday it was working just fine. Because a refrigerator, unlike a television, has an important function, it must be replaced immediately. Otherwise, all the food in the refrigerator can be spoiled.
And as the sandwich generation, if your parents don't live under the same roof with you, then you also have to take into account the cost of repairing and replacing items at your parents' home.
With Emergency Savings, Insya Allah You Are Prepared for Unexpected Expenses
Being aware of the unexpected expenses, it is very important for the sandwich generation to have an emergency fund that is ready to be used whenever needed.
When interviewed by Bank Jago Syariah, certified sharia financial planner Dewi Ratna D. Amelia emphasized the importance of having emergency savings. "An emergency fund is like a spare tire when traveling, it needs to be a financial goal."
If you don't have an emergency fund yet, you can start saving by first making a budget for it. If you want to manage finances and save according to sharia principles and allocate an emergency fund budget in a practical way, you can use the Jago Syariah Pocket.
A suitable pocket is the Saving Pocket. Once a Saving Pocket is created, you can start filling it with money. If you want it to be hassle-free, you can choose to save money automatically. In this way, you can . consistently put money into your emergency savings.
There are a number of ways to start building an emergency fund. For example, by reducing expenses, especially non-priority ones such as entertainment, eating out and subscriptions to services that are rarely used or enjoyed.
Once your emergency fund savings have accumulated enough to reach millions of rupiah, you can move them to a Sharia Deposit. Apart from protecting your savings from being used for other purposes, the Sharia Deposit frees you from paying penalty fees if you withdraw it at any time. So, the Sharia Deposit is very suitable as a place to keep your emergency funds.
In addition, you can also increase your income through side jobs, starting your own business and investing in sharia mutual funds to earn passive income.
Dewi added that the sandwich generation should be more enthusiastic in managing finances properly. “They must be able to manage finances through budgeting and avoid consumptive debt. Self-control from excessive use of money must also be practiced continuously.”
Together the sandwich generation can be jago at building an emergency fund and being prepared for unexpected expenses.
