It may surprise you, but approximately 50% of Australians are living paycheck to paycheck. This is a common occurrence across the world. Economic difficulties, especially those resulting from the global pandemic, are placing incredible strain on the ability of people to survive. This strain is felt even more by the sandwich generation. This is the current group of middle-aged individuals who are still supporting their growing children and have an obligation to look after their parents.
That can mean a significant drain on finances that are already stretched. These issues are compounded as children are generally leaving home later and people are living longer.
That’s why the sandwich generation needs to develop the right money strategies.Being part of the sandwich generation – meaning you’re caring for aging parents while also raising children – can create unique challenges in shaping your financial plan. Check out these financial tips! Click To Tweet
As a parent, you want what is best for your children. One of the best gifts you can give them is not to burden them in old age. That means you need to save for your retirement, and this should be your first concern.
You’ll want to speak to a financial planning expert and establish hat rate of saving you should be doing. This will help to ensure you’re not a burden in the future.
Kill The Debt
You need to sit down and work out what you owe and how you can best pay it down. This is usually a slow process, but the sooner you start, the quicker it will be done, freeing capital for other uses.
You can approach this in many different ways, but the best option is to pay the smallest debt first. It will help you to feel like you’re achieving something.
You’ll probably need to review your budget and cut costs to make this possible.
This means spending more, but long-term care insurance can help you afford the care your parents need if they need helpers or have other special needs.
It’s best to purchase this insurance before your parents turn seventy.
Talk To Parents
Your parents may have money put aside, and they may have equity in a property. It’s time to talk to them and decide what the best option is for them and you.
It may mean selling your house and theirs to get a place that you can all share, freeing money up for care.
There is no right or wrong way forward for this. It’s simply important to talk to your parents and discuss the options.
Remember, it’s not just about finances; it’s also about the quality of life.
You also need to discuss what your parents would like to happen if they cannot care for themselves. It makes it easier if this actually happens.
Take On More
During this stage of your life, you still have the energy to take on additional work, which could help cover the financial burdens you currently face and prepare you for the future.
It can be exhausting to take on extra work, but there are various ways to boost your income that are worth considering.