The “sandwich generation” is a term that was coined in the 1980’s and roughly 9 percent of Americans find themselves in this role. The sandwich generation is a group of women who are supporting both their children and their aging parents. Obviously, this is a tough spot for anyone to find themselves in. Not only is it emotionally draining but it can take a toll financially.
Fortunately, a little foresight and creative thinking can help ease this burden somewhat. Here are three smart financial strategies to help you stretch your budget so you can support both your parents and your children:
- Mutual Contributions
Using a little creative thinking can go a long way toward making your financial situation more manageable. Just because you are supporting your parents and your children doesn’t mean that they can’t contribute.
If your parents are able, they could help by providing childcare occasionally. Or you could split the cost for certain household bills or share a car to cut down on fuel costs. Depending on the ages of your children, they may be able to help as well.
- Easy Side Jobs For Your Parents
Money is one of the most uncomfortable subjects for most people to talk about so a lot can stay hidden. But it is impossible to make a solid financial plan without having all the necessary information.
Find out how much your parents have saved and how much income they have coming in every month from retirement and social security. Having this information will put you in a better position to take over paying their bills and taking care of taxes.
Also, have about helping your parents secure a side jobs that can generate easy and reliable income? Parents can join focus groups where they can get paid simply by sharing their opinion about certain products. In addition, they can also apply to part-time jobs at usajobs.gov. The truth is, age discrimination is less likely to occur in government positions. Another option is retail jobs at grocery or department stores during the holidays.
Remember, any extra income helps.
- Have a plan in place for emergencies
If you don’t already have one, you should start saving for a six month emergency fund. Having a cash reserve available will save you from having to take on credit card debt in the event of an unplanned emergency like a layoff or car accident.
You should also begin setting short and long-term financial goals to help you plan for the future. If you can focus on your own financial stability you will be in a better position to provide for your family members.
Send at least $25 – automatically – from your checking account into your savings. Do not use your savings account ATM. Do not touch that money and use it as a cushion in the event of an emergency.
I had a rough experience that propelled me to focus on money matters – and I survived. If I was able to save money, you can do it too. To read my dramatic story, click HERE.
Did you miss my #NASCAR Star Influencer entry video? Check it out HERE.
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