The “Sandwich Generation”: A New Found Old Battle

There is a new breed of generation today called the Sandwich Generation. This generation has been present for ages and many have not noticed that this generation is prevalent in the Philippines. This is the generation of breadwinners who are financially supporting his/her parents or extended family while supporting his/her own family also – the spouse and children. 

This generation of breadwinners may have limited options as to how they are going to make a better future ahead of them since a whole lot of obligation is being put upon their shoulders. However, their crisis can also be opportunities to uplift their families’ lives and change the course of time.

So how does a person, who considers himself belongs to the sandwich generation can change the course of time?

Monetize Skills and Talents

By monetizing a person’s skills and talents can make a difference in the income of the household. If the household income is not enough to sustain the monthly expense, then banking on what a person loves to do can contribute a lot. An example is blogging, vlogging and online selling. With the advent of technology, and access to social media, there are a lot of channels to showcase one’s talents and skills and monetize it.

In fact, others are able to put up a business or a sideline by offering their services such as events planning, hosting, real estate consultancy, financial advising, virtual staff and many others.

Pay Your Self First Attitude

For the sandwich generation, it is really difficult to make ends meet, but at the end of the day, it is still important to pay yourself first before anything else.

A rule of thumb is to save at least 10-20% of one’s income. If 10-20% is not possible then why not save at least 5%. Maybe a 500 pesos per payday will not hurt. For a person who takes care of the monthly expense of the family, a healthy savings account considered as an emergency fund is a must. An emergency fund should be at least 3-6 months equivalent of the household’s monthly expense.

For other goals such as travel fund, Christmas giveaway fund and others, it should be treated as a separate account. An account is opened for a particular goal. So the first fund the sandwich generation must have is an emergency fund.

Risk Management Should be considered

Since the reason why it is difficult for this generation to save is that they are, if not the sole person who takes care of the expenses, probably is shouldering around 80-90% of the household expense. Risk management is crucial, without proper risk management, all the more that the household will suffer without the breadwinner.

In risk management, a Life insurance, Non-Life Insurance and Health Insurance should be in place. Without a solid foundation, and an unforeseen event happens – death or disability of the breadwinner, everything will be wiped out in the blink of an eye because the family must spend for doctor’s fees, hospital fees and medication - that is on top of the usual bills such as utilities. 

Avoid Loans and Co-signing Loans

One of the pitfalls of an average Filipino is to get more loans just to augment the family’s monetary needs. Unfortunately, some will not stretch to earn income from other sources such as monetizing skills and talents or exploring entrepreneurship.

Getting a loan should be the last, if possible, not an option. Unless, a loan will be used to put up a business that can give a passive income to the family then a loan should be okay.

Another pitfall is co-signing loans which is treated as if you are doing a friend a favor and become an instant hero to another family. Some would not even think that there is a possibility that the debtor may just leave the whole responsibility of paying the loan to the co-signee.   - and sad to say, this really happens. 

Again, for debts, it is only good if it brings cash to the household.  

Find a Mentor

In whichever stage, breadwinner, heavily in debt or just starting a career, have a mentor. A mentor can always give, if not the best advice, at least a better path to take. As what the elders always say, “been there, done that”, a simple piece of advice should not hurt.

The sandwich generation, though have been juggling a lot from the challenges of their day to day routine, could be at the best position to turn challenges into an opportunity, as what the Chinese proverb says that Crisis brings opportunity and change.