As part of the sandwich generation, juggling various family needs can make managing your salary a real challenge. You might often feel like your paycheck is never enough or even falls short.

Well, that could be because you haven’t figured out the best way to manage your salary yet! Don’t let your hard-earned money disappear without a plan.

So, how do you effectively manage your salary as part of the sandwich generation? Instead of wondering, check out these tips and tricks below!

1. Create a Monthly Budget Plan

The first step is to create a monthly financial plan or budget. You can use various tools to do this, such as financial planning apps, Microsoft Excel or Sheets, notebooks, or whatever works best for you.

Start your budgeting plan every payday. Create categories for expenses, such as debt payments, bills, daily family needs, etc.

2. Apply the 50-30-20 Rule

To make your monthly budgeting more effective, try applying the 50-30-20 rule. This method divides your income into 50% for essentials, 30% for leisure and other needs, and 20% for savings and investments.

The 50% allocated for essentials is quite significant because there are many daily expenses, like food and drinks, basic groceries, transportation, medication, and more.

The 30% can be allocated for entertainment and other needs. Entertainment can include things like going to a cafe, watching a movie, or even setting aside money for an emergency fund if you don’t want to spend it on entertainment.

3. Manage Credit Card or Paylater Usage Wisely

A common issue the sandwich generation faces is not having enough salary to cover large expenses. That’s why many in the sandwich generation, including you, might turn to credit cards, paylater services, or loans.

There’s nothing wrong with that, as long as it’s managed wisely. Credit cards and paylater services are designed to help with financial problems, but don’t get carried away and treat loans as “extra money to spend.”

Before taking out a loan or using a credit card, ask yourself: how important is this expense? If it’s a priority, calculate the installments and make sure your monthly salary is enough to cover the debt.

Credit cards or paylater services can also help you manage your salary well if you already have a rough idea of your monthly expenses. This way, you won’t spend beyond your budget.

Here’s an example from Budi, a responsible member of the sandwich generation:

• Budi’s budget for online transportation is Rp500 thousand per month.
• He links his Honest credit card to the online transportation app.
• When Budi uses online transportation, the charges are automatically billed to his credit card.
• Budi can track his online transportation expenses in real time to ensure they stay within budget.
• After payday, Budi pays his credit card bill for his transportation expenses.

Consider using the Honest credit card. It offers an easy application process that takes only 5 minutes! The Honest credit card can cover all your daily needs, including household expenses, transportation, food, and more. You can track your spending in real-time in the app, as all transactions are recorded instantly.

Plus, the Honest app features tools that help you manage payments. Honest has a payment amount feature that shows the interest rate, payment deadline, and payment methods. So, you’ll have a clearer picture of your monthly expenses.

4. Open More Than One Savings Account

Having multiple savings accounts is a good idea when managing your salary. Why? The goal is to use each account for a specific purpose.

For example, you could use Account A to pay bills, Account B for daily needs, and so on.

5. Set Up an Emergency Fund

Don’t forget to set up an emergency fund! As part of the sandwich generation, you’ll likely face unexpected expenses.

Your emergency fund can cover unexpected costs such as hospital bills, losses, etc. It’s also important to have a credit card as a backup in emergencies.

6. Pay Off Loans or Bills on Time

Lastly, don’t delay paying off loans or bills. The longer you wait to pay, the more interest and penalties you’ll incur.

If that happens, your salary will be eaten up by interest and penalties rather than covering other expenses. You don’t want that to happen, right?

So, prioritize paying off loans and bills before allocating money for other needs!

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Those are smart ways to manage your salary, especially if you’re part of the sandwich generation. By managing your salary effectively, you can better handle the risk of running out of money. Good luck!