InvestorQ : When it comes to financial security, sandwich moms are the ones who face double trouble, how to overcome it?
Abigail Ghoshal made post

When it comes to financial security, sandwich moms are the ones who face double trouble, how to overcome it?

Answer
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Rishita Das answered.
7 months ago


Generally, women who are caught between the financial needs of their parents and children are the ones to be called ‘sandwich moms’. It is not really easy to manage such a life, even if they do, there are still challenges that they face and the biggest of them is financial management.

Here are a few things that could help these women to make a balance:

Buy insurance: Yes, something you already know. It is very important to take care of yourself and to secure the financial life of your family if you are the only earner. Health insurance is very important to cover medical expenses in case of illness.
Emergency corpus: With dependents, one cannot afford to be in a financial crisis, whatever it be a medical problem or job loss or any other type of loss. So, it is better to build an emergency corpus which shall be equal to 4-6 months of household expenditure.

Invest in lots or for dependents: For every dependent, it is better to invest keeping in view the needs and objectives. For example, it is better to invest for parents in a scheme that generates fixed returns. For dependent kids, you will need funds for their education and a huge sum when they grow up. So you can invest in long-term equity funds that would generate higher returns for your kids.

Also, do not forget to save enough for your retirement and set a goal about how much do you want to keep aside for yourself amongst this.