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00:00 [MUSIC]
00:02 Hey, welcome back to C Morning Show.
00:04 It's time for our business talk segment.
00:06 And today we have certified financial planner with us,
00:09 Medha Anggriani, to talk about financial strategies
00:12 for the sandwich generation.
00:14 Which is us.
00:15 [LAUGHTER]
00:16 It sounds delicious.
00:17 Which is everyone, right?
00:18 But with that, thank you so much for coming in.
00:20 Thank you for having me.
00:21 On this May Day.
00:22 Yes.
00:23 All right, first question.
00:24 Yeah.
00:25 The sandwich generation.
00:26 All right, so faces complex challenges.
00:28 How can one create a balanced budget to manage our expenses
00:33 for both parents and families?
00:36 Yes, I think before I answer to your questions,
00:39 I think we have to talk about the ideal figure
00:43 about the financial management for the sandwich generation.
00:46 Because as you mentioned, the sandwich generation
00:49 has like a double burden, right?
00:50 They have to take care of themselves.
00:52 That's right.
00:53 They have to take care of the kids,
00:54 you know, the one generation below.
00:56 And then we have to take care of the parents.
00:58 One generation above, right?
01:00 So with that many dependents, I think
01:03 we have to ensure that the finance management
01:06 for the sandwich generation should be quite conservative.
01:08 Because we have to focus on what is priorities for the family,
01:12 right?
01:13 And then the second, because we have too many dependents
01:17 as well, we have to ensure that our finance is liquid.
01:20 Because we have to anticipate whenever
01:23 comes the risk from all that possible dependents happening,
01:26 we have to cover that.
01:28 Yes.
01:28 So that's the fund is conservative,
01:30 and then to be liquid enough.
01:33 So then we talk about the budget,
01:34 how to create a balanced budget for the sandwich generation.
01:38 I think first we talk about the expenses,
01:42 what has to be covered in your monthly expenses.
01:46 I think for the sandwich generation,
01:47 first we have to take care of ourselves.
01:49 So we have to ensure that we have to pay the insurance
01:53 expense for ourselves.
01:55 Health insurance, BPJS or additional.
01:59 As well if you can have a life insurance,
02:00 that would be better.
02:02 Because what?
02:02 Because we cannot afford to be sick because other people
02:06 are counting on us, right?
02:08 So and then the second, if we have
02:11 to cover our parents' expense, especially if we give them
02:15 a routine monthly supporting fund.
02:19 So I think it's better to be included in your budget
02:22 as well, because that's the expenses that you
02:26 have to give out as well.
02:27 The monthly allowances for our parents.
02:28 Right.
02:30 And then I think that's for the expense.
02:32 And then of course you have to budget for savings, right?
02:36 So you have to set aside some money from saving.
02:39 And there's quite a lot of savings
02:40 that you have to manage, because you
02:43 have quite a lot of financial goals as well for the future
02:46 and for the expense now, right?
02:49 So now first is that you have to ensure
02:52 that you have emergency fund.
02:54 As I mentioned, we have to be liquid, right?
02:56 So the emergency fund should be always
02:58 available whenever we need.
03:00 And for second generation, I think
03:02 it should be quite big enough as well,
03:04 like 12 times of your monthly expenses.
03:09 Of course, it was not built at one time, right?
03:13 So you have to be slowly put aside some money
03:17 for your emergency fund.
03:20 And you don't use it unless it is emergency, right?
03:23 I'm always afraid of liquid money,
03:24 because there's money there.
03:27 There's so many temptations out there.
03:30 And then the second, what savings do you need for?
03:33 If you have kids, you have--
03:34 I mean, like the most predictive expenses
03:38 that may be available for your kids
03:40 is for the education expense.
03:42 It's predicted, the timing, maybe the amount,
03:45 you can also calculate.
03:47 So that would be the education expense for the kids.
03:49 You have to have some savings on that.
03:52 And of course, if you still have some money,
03:55 you still put some money for your retirement expense,
03:59 because you have to ensure that when we grow old,
04:02 when we're getting old--
04:04 You don't want to pass on this sandwich generation
04:06 that our kids have to take care of us.
04:08 That's how to cut off this sandwich generation.
04:10 Yeah, it's like roast beef sandwich
04:12 would be more delicious than this one.
04:14 Well, and most definitely, we can't see sandwich,
04:17 or this term, as a negative perspective, definitely,
04:21 because it goes on to our tradition,
04:22 especially we're living in Indonesia
04:24 or the Eastern regions.
04:25 It's usually you're bound to be like this, right?
04:27 Especially by having your parents depending on you,
04:30 because we've always been taught,
04:33 when you grow older,
04:34 then you're going to be the one
04:35 that's going to take care of me,
04:36 because I took care of you when you were a child.
04:39 So this has become not only,
04:42 it's not only a term or a financial term,
04:44 it becomes a tradition and also a culture for us.
04:46 In regards to what you already said,
04:48 we do have a lot of homework,
04:49 especially for the sandwich generation,
04:51 but how can one optimize their investment,
04:54 especially for the long-term?
04:57 Of course, when we talk about the needs,
04:59 the future needs, right?
05:00 The investment is to ensure
05:02 that our future needs are covered.
05:04 So I think the best thing is to start early.
05:08 So I mean, as long as you know,
05:10 if you're creating your own family,
05:13 then you know you have to take care of your family,
05:14 but you have to also think about your parents.
05:16 It's time to have an open communication
05:18 with your parents as well.
05:20 I mean, maybe what's your plan for your retirement?
05:24 And then we can see, right?
05:28 I mean, is my parents having enough assets?
05:31 You can assess first.
05:34 You can assess first before you talk to them.
05:35 And then, because what?
05:37 Because then we have to ensure
05:38 that you can cover them as well, right?
05:41 And then, so when we start early,
05:43 you have to identify the needs first, right?
05:45 And then you have to start allocating your money
05:48 for the savings, right?
05:51 And of course, when you do investment,
05:54 you have to categorize your savings.
05:59 Which one for the short-term,
06:02 and maybe like for your emergency fund,
06:03 it should be ready for short-term, right?
06:05 And then which one is for medium-term,
06:08 and then which one is for longer-term.
06:09 Like, for example, your retirement fund,
06:11 maybe for your longer-term.
06:13 Because what?
06:14 If we identify, if we categorize all the savings,
06:19 then we can choose the right instruments as well.
06:21 So I think that's important
06:22 when you want to optimize your investment,
06:25 because you have to choose, you know,
06:26 if it is a short-term,
06:28 maybe you don't need the one that is very aggressive.
06:31 You need something that is available whenever you need.
06:34 So maybe the risk is low, but maybe the return is low,
06:37 but you have to accept that, right?
06:39 But if you-
06:40 - Accepting life.
06:41 (laughing)
06:43 - Accepting the fact that you are a savings manager.
06:44 - That's right, that's right.
06:46 - All right.
06:47 And then if, but if you're saving for a longer term,
06:51 so that's why you have to,
06:52 you can choose an instrument that is, you know,
06:55 giving the more higher return with the more higher risk,
06:59 but you know, you can also put some strategies,
07:02 another strategies to compensate the risk as well, right?
07:05 - Yes.
07:06 - Yeah, so I think that's it.
07:07 You start early, you choose the right instruments,
07:11 and then of course you have to be very disciplined.
07:13 Oh, there you go.
07:15 That one is very hard.
07:17 Especially when you have the holiday
07:18 or the Adolfoeria allowances,
07:19 sometimes you're so triggered to, you know,
07:22 spend it and splurge just a little bit
07:23 when you know you actually,
07:25 and there's a lot of people dependent on you.
07:27 - Because you don't know when the next one's
07:28 gonna come by.
07:29 - Yes, yeah.
07:30 - One of the things, you know,
07:31 like when you talk about sandwich generations,
07:33 you know, there's a husband, there's a wife,
07:35 there's your brothers, your sisters,
07:37 and then you know, like,
07:38 well, I give this much to my parents,
07:41 like how about you, how about you?
07:42 Or like, why are you giving this much to your parents?
07:44 How about my parents?
07:45 So the question's gonna be,
07:47 what percentage of income should be allocated
07:50 for monthly expenses for workers earning
07:54 below minimum wage or around minimum wage?
07:56 - Well, yeah, I mean like,
07:58 well, there's, you know,
08:00 the allocation, the budget allocation
08:04 that is normally people follow,
08:06 that is the, you know, the 50, 30, 20, right?
08:09 Yeah, I think for the sandwich generation,
08:13 I think the savings part should be greater as well.
08:16 - Oh, good.
08:17 - I mean like, if you don't have to have like,
08:19 you know, the loan, the installments of loan,
08:23 I think it's better for you to focus on your savings, right?
08:27 And your expense, of course,
08:28 you still, you already have an expense
08:30 and you have to ensure that the expense
08:32 that I mentioned earlier as well, right?
08:34 So I think then we have to really focus
08:37 on what is important and we have to minimize,
08:40 you know, the budget for fun,
08:41 for traveling, for entertainment,
08:44 unless, you know, unless you have this 12 months
08:47 of emergency funds already available.
08:49 That's quite a lot, right?
08:51 Right, so I think if you talk about the percentage,
08:55 I think everyone's can be very different,
08:57 but if you are, you know,
08:59 if you have the salary below the minimum wage,
09:02 then even more harder,
09:04 even maybe you cannot afford to have loans or something.
09:09 So that's why you still have to manage your savings.
09:12 Savings is minimum 10%,
09:14 but if you're sandwich generation,
09:16 I think you need more than that, maybe 20.
09:18 If you can have 30%, that is good.
09:21 But again, you have to be very strict on your budget.
09:24 - Yeah, and I think we're discussing this
09:26 in the correct day, it is May Day, by the way.
09:28 So I mean, this is a really,
09:30 a lot to put in theory or thoughts.
09:32 And definitely, Mameda, in regards to,
09:35 you know, you were saying that before
09:36 that we have to start early by meaning or by definition,
09:39 this is before you want to start to have your own family,
09:42 maybe to how many more, how many children's that you need.
09:45 Oh, sorry, excuse me.
09:47 I will rephrase that, how many children that you want
09:50 and would be applicable, I think,
09:51 for the foreseeable future,
09:52 if you need to take care of your parents,
09:54 because as you mentioned before,
09:56 there's the monthly allowances
09:57 that maybe you need to give to your parents
09:58 because of tradition and culture.
10:00 Yet alone, we need to have, you know,
10:01 savings that's liquidified,
10:03 because when you're more in a senior age,
10:06 sometimes health problems will come in and go without,
10:09 there's no warnings,
10:10 they could just come like a tornado to you.
10:13 - Yeah, so that's why I mentioned about, you know,
10:15 this education fund as well as, you know,
10:17 the insurance expense for health,
10:18 because those two, the education expense
10:21 and the health expense is the ones that is, you know,
10:24 the inflation rate is higher than, you know,
10:26 the normal national rate.
10:28 So that's the most things that we have to be very,
10:32 you know, very careful to put it into our budget.
10:36 - Yes. - Yeah.
10:37 - And definitely that's why we need a financial planner,
10:39 like even before your pre-wedding.
10:40 (laughing)
10:41 - That's true. - Right?
10:43 - Yeah, yeah.
10:43 - It's like kind of like itemized and budgeting everything.
10:45 - Yeah, some people said you have to talk about your finance
10:48 with your couples before you get into the commitment.
10:51 - That's right.
10:52 - You know what's interesting was,
10:54 you mentioned about education,
10:56 so I put some money on the government bonds
10:58 and I calculated like, oh, by the time she gonna be going
11:01 to junior high, I need this amount.
11:03 And I just heard like how much kids,
11:05 how much parents have to pay for kindergarten nowadays.
11:08 - Yes. - I was like, oh, that's, that's.
11:10 - Like getting a doctor degree right there.
11:13 - Right, the education expense may be, you know,
11:15 10% increase inflation every year.
11:18 - I feel like more.
11:19 - Even more, yeah.
11:20 And how much you get for the bonds?
11:23 - Oh, 6.2%. - 6.2%, right?
11:25 - Yeah, 6.2%.
11:27 - Yeah, and the inflation is even below.
11:29 So it's really, you know, outstanding the inflation, right?
11:34 And we have to be very put it into our calculations.
11:36 So that's why, I mean, some people don't,
11:39 some people don't believe in insurance, right?
11:41 But the risk, the health risk is actually available
11:45 to any of us, right?
11:47 So, if you don't want to have insurance,
11:49 you have to have a very big savings.
11:52 - That's another option that you can take, right?
11:54 To either or.
11:54 - Either way, you have to save.
11:57 - All right, of course, Mameta, again,
11:59 I think this is such a great discussion.
12:00 Maybe one more before that we're going to conclude
12:02 our discussion for today.
12:04 How, it's going to be tough, but how can we say,
12:08 or how can we discuss, especially to our senior citizens,
12:12 our beloved parents, in regards to about, you know,
12:16 how they're financial independent?
12:18 - Yeah, I think we have to talk about it
12:21 before they are getting,
12:22 - They're still in the productive age.
12:24 - Yes, yes.
12:24 - Okay.
12:25 - Because I think like, but I think nowadays,
12:27 if I look at the Gen Z or millennials,
12:29 they start saving, right?
12:31 And then they talk to their parents,
12:33 hey mom, dad, I started to have this stock investment
12:36 and you know, there's a Bitcoin.
12:38 And I think the parents will be opening up
12:40 their horizons as well, right?
12:41 If my kids is starting to saving, maybe,
12:44 maybe how about me?
12:45 Maybe, maybe it's--
12:47 - It triggers them.
12:47 - Yeah, yeah, and I think for kids, as a kid,
12:50 I mean, like as children, we have to start the conversation
12:54 because, you know, before, I think when we talk about money
12:58 is kind of like taboo.
12:59 - Yes.
13:00 - But nowadays, it's necessary.
13:03 It's necessary.
13:03 So, so I think it's not that because I don't want to,
13:07 to support you, it's to, because like,
13:09 I want to prepare myself, how can I support you?
13:12 That's the way we have to start the conversation.
13:15 - That's the language of love, right?
13:17 And maybe it's a little bit hard in the first time,
13:19 but it is going to be a fruitful one for your future,
13:22 for your parents, yourself, and your future generation.
13:24 - I think that's the key right there.
13:25 - Yes.
13:26 - You just have to talk about it.
13:28 - Yes, but I mean, like, especially like you said,
13:30 in our tradition, I mean, like, we have very group, right?
13:33 I mean, like, we are supporting each other, right?
13:36 So I think, I mean, like, because talking about
13:39 this sandwich generation, it could be quite depressing,
13:42 but I think let's just see it in a different way.
13:44 - That's right.
13:45 - That is actually like, it's a blessing
13:47 that you can still support.
13:48 - That's right.
13:49 - And you can have children and it's a happiness
13:52 when you see them grow up.
13:53 - That's right.
13:54 - And live as a great, happy family.
13:56 - There you go.
13:57 See everything in a different perspective.
13:59 And that's why I said, you know,
14:00 sandwich generation should not be a negative term.
14:02 It should be a blessing.
14:03 - Right.
14:04 - Lometa, thank you very much for joining us
14:06 right here in this May Day.
14:08 And definitely an eye-opener for all of us.
14:10 - All right, thank you very much.
14:11 - Thank you very much.
14:11 And indeed, we're going for another short break right now.
14:14 In the meantime, please do stay connected with us
14:16 at @CTodayNews.
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