Stacey Robb, Author at Parachute

National Financial Freedom Day: A Day to Celebrate Financial Independence

National Financial Freedom Day is observed on July 1st every year. The holiday aims to raise awareness about financial freedom, which is the ability to afford the kind of life you desire without having to worry about financial constraints. There are many things you can do to achieve financial freedom, such as:

Pay off debt. This is one of the most important steps you can take to improve your financial situation. The less debt you have, the more money you will have available to save and invest.
Build an emergency fund. This is a savings account that you can use to cover unexpected expenses, such as a car repair or medical bill. Having an emergency fund will help you avoid going into debt when unexpected expenses arise.
Invest for the future. Once you have paid off debt and built an emergency fund, you can start investing your money. Investing can help you grow your wealth over time and reach your financial goals. There are many different ways to invest, so you can choose an option that is right for you. Some popular investment options include stocks, bonds, and mutual funds.

Achieving financial freedom takes time and effort, but it is possible. By following these tips, you can take steps to improve your financial situation and achieve financial independence:

Create a budget and stick to it. This will help you track your spending and make sure you are not overspending.
Live below your means. This means spending less money than you earn.
Save money regularly. Even if you can only save a small amount each month, it will add up over time.
Invest your money wisely. Do your research and choose investments that are right for you.
Be patient. It takes time to achieve financial freedom. Don’t get discouraged if you don’t see results immediately.

National Financial Freedom Day is a day to celebrate your progress and to recommit to your financial goals. We at Parachute are here to help you do just that! Give us a call at 716-712-2060 to schedule an appointment to speak with one of our skilled counselors who can help you determine steps you can take to achieve financial freedom and live the life you desire!

Budget

The Importance of Emergency Savings

An emergency fund is a financial cushion that can help you cover unexpected expenses, such as a job loss, medical emergency, or car repair. Having an emergency fund allows you to be able to pay for these expenses if/when they come up without having to go into debt (or more debt).

Why is an emergency fund important?

It can help you avoid debt. When you have an emergency fund, you don’t have to use credit cards or other loans to cover unexpected expenses. This helps you to avoid paying interest on debt, which saves you money in the long run.
It can help you stay afloat during a financial crisis. If you lose your job or have another major financial setback, an emergency fund can help you continue to pay your bills and keep your head above water until you are able to get back on your feet – again, without going into debt.
It can give you peace of mind. Those emergency savings can give you a sense of calm and comfort, knowing that you’re financially prepared for whatever life throws your way.

How much money should I have in an emergency fund?

The amount of money you should have in your emergency savings depends on your individual circumstances. A good rule of thumb is to have enough money to cover three to six months of living expenses. If you have a high-paying job and a generally stable financial situation, you may be able to get away with having a smaller emergency fund. On the other hand, if you have a low-paying job or a volatile financial situation, you may need more emergency savings to cover unexpected expenses that you wouldn’t otherwise be able to afford.

How can I build an emergency fund?

Building an emergency fund can take time, but it’s worth it. Here are a few tips to help you get started:

Set a goal. The first step is to set a goal for how much money you want to have in your emergency fund. Once you know your goal, you can start to make a plan to reach it.
Make a budget. Once you know how much money you want to save, make a budget to help you track your spending and make sure you’re saving enough money each month.
Automate your savings. One of the best ways to make sure you’re saving money each month is to automate your savings with a direct deposit from your paycheck into your emergency savings account.
Reduce or eliminate non-essential spending. If you’re struggling to save money, you may need to cut back on unnecessary expenses. This could mean eating out less, cancelling unused subscriptions, or finding less expensive alternatives to your current expenses.

Now what?

If you don’t have an emergency fund, start saving today! It’s okay to start small. Even if you can only save a very small amount each month, it really does add up over time. And when you need it, you’ll be glad you have it!

Budget, Credit, Debt, Parachute Services

The Link Between Money and Mental Health

May is Mental Health Awareness Month, and there is a clear connection between financial wellness and mental health. Financial problems are a major source of worry and anxiety for many people, and can lead to mental health struggles. If you’re worried about money, then you’re not alone! Here are some ways that financial issues can affect your mental health:

Stress. Money worries can be a major source of stress, and chronic stress can have a negative impact on mental health, and even physical health.
Anxiety. Financial problems can lead to anxiety about the future, and about being able to meet basic needs.
Depression. Financial problems can lead to feelings of hopelessness and despair, which can contribute to depression.
Substance abuse. Some people turn to drugs or alcohol, or other addictive behaviors, to cope with financial stress. You are not alone, and there are resources available.
- SAMHSA’s National Helpline, 1-800-662-HELP (4357), or TTY 1-800-487-4889, also known as the Treatment Referral Routing Service, is a confidential, free, 24/7/365, information service, in English and Spanish, for individuals and family members facing mental and/or substance use disorders. This service provides referrals to local treatment facilities, support groups, and community-based organizations.
Suicidal thoughts. Financial problems can be a major risk factor for suicide. Please reach out for help AS SOON AS POSSIBLE if you are having suicidal thoughts.
- If you’re thinking about suicide, are worried about a friend or loved one, or would like emotional support, the Lifeline network is available 24/7 across the United States. The 988 Suicide & Crisis Lifeline (formerly known as the National Suicide Prevention Lifeline) is a United States-based suicide prevention network of over 200+ crisis centers that provides 24/7 service via a toll-free hotline with the number 9-8-8. It is available to anyone in suicidal crisis or emotional distress. The caller is routed to their nearest crisis center to receive immediate counseling and local mental health referrals. The Lifeline supports people who call for themselves or someone they care about.

If your finances are negatively affecting you mentally, emotionally, and/or physically, there are a number of things you can do to improve your mental health, such as:

Talk to someone. Talking to a friend, family member, therapist, or financial professional who can help you cope with your financial problems and develop a plan to improve your financial situation. Getting involved in your community can help you to feel more connected and supported, which can also buffer the effects of financial stress.
Seek professional help. If you are struggling with mental health problems as a result of financial stress, it is important to seek help from a trained professional. A therapist can help you manage your stress, anxiety, or depression.

Take care of yourself. Make sure to get enough sleep, eat a healthy diet, and exercise regularly. These things can help improve your overall mood and well-being, putting you in a better position to be able to manage the stresses in your life.

Budget, Credit, Debt, Parachute Services

April is Financial Literacy Month!

Financial Literacy Month is a national observance held every April to promote financial education and responsibility. Financial Literacy Month is a great time to learn more about financial literacy and to start taking steps to improve your financial well-being.

Financial literacy is the ability to understand and manage personal finances, and includes the awareness and knowledge to make informed financial decisions. Financial literacy can be improved by seeking to understand basic financial concepts such as budgeting, saving, and investing.

Financial Literacy Month is a great time to start taking steps to improve your own financial well-being. Here are some tips to get started:

Set financial goals.

What do you want to achieve financially? Do you want to buy a house, save for retirement, or start your own business? Once you know what you want to achieve, you can start making a plan to reach your goals.

Create a budget.

(…and stick to it!). A budget is a plan for how you will spend your money. It can help you track your spending and make sure you are not spending more than you earn. You can’t make progress toward your financial goals if you don’t know where your money is going each month.

Save money.

Start by setting aside a small amount of money each month and gradually increase the amount you save as you get more comfortable with it. Set up auto pay to direct deposit a realistic amount to a savings account out of each paycheck.

Start thinking about investing.

Investing money is a way to grow your money over time. There are many different ways to invest, so it is important to do your research and choose an investment strategy that is right for you. Contact a financial planner or advisor for specific advice and guidance.

Get help.

If you are struggling with financial literacy, there are many resources available to help you, both online and in your community. You can take a financial literacy class, read books or articles about financial literacy, follow reputable financial sources on social media, subscribe to financial newsletters, or listen to personal finance podcasts. Meeting with a financial professional is a great way to assess your own situation, and work together to create a plan on how to achieve your personal financial goals and stay on track moving forward.

Parachute Credit Counseling is dedicated to promoting financial literacy and well-being, and to help minimize the stigma associated with debt. We offer many different services to assist individuals and families achieve their personal financial goals, and to provide financial education.

More information on Parachute’s Workshops and Events to promote financial literacy:

Workshops & Events

Essential information compiled by Parachute to promote making wise budgeting choices and maintaining good financial health:

Educational Articles

Contact us at (716) 712-2060 to speak with a certified financial counselor and review your personal situation and create a plan to take specific steps to improve your own financial literacy. We are offering appointments all through the month of April, and beyond!

Credit, Debt

Is credit counseling a good idea?

Credit counseling involves meeting on-on-one with a certified credit counselor employed by a non-profit consumer credit counseling agency, and can be extremely beneficial if you are struggling with or overwhelmed by debt. Part of a credit counselor’s job is to help you evaluate your specific financial situation, and to offer personalized guidance on budgeting, credit, and debt repayment options. Some potential benefits of debt repayment through a credit counseling agency can include rebuilding your credit, reducing interest costs and monthly payment amounts, and having a concrete action plan to follow to work toward achieving your financial goals.

Credit counseling can be a great option if you:

Are struggling with monthly minimum payments for multiple unsecured accounts, and a reduced payment amount can be afforded within your budget
Have high interest rates and your creditors will not work with you directly to reduce them
Want to resolve your debt issues in a limited and fairly short term timeframe (5 years or less)
Are looking to understand how to better manage your finances
Need some additional guidance toward taking the best steps to achieve your financial goals
Are considering bankruptcy but want to discuss alternative options first

Debt repayment through credit counseling may NOT be the best option for you if:

Most of your debt is secured or otherwise ineligible – ex. student loans, mortgages, auto loans, home equity loans/lines of credit, etc.
Your debt amount is relatively small and can be paid off directly in a short period of time
You have the ability to make larger than minimum monthly payments
You still cannot afford household and living expenses even with a lower monthly debt payment

Whether or not you choose to repay your debt through a repayment plan with a consumer credit counseling agency, meeting with a credit counselor is a great recommendation for anyone struggling with debt, because an expert can take a look at the entire financial situation and help come up with an action plan on how to move forward. Many credit counseling services, including initial consultations, are free, so there is no harm in at least hearing what a certified credit expert may recommend. Do your research, and remember that there are no quick fixes or shortcuts when it comes to your finances. It’s a process, but one that can really be worth it!

Budget

Summer Vacation on a Budget

Still want to travel this summer, but wondering how you can make it work in these tough financial times? Despite the quickly rising costs for food, transportation, etc., there are ways to cut costs without cancelling your travel plans completely. Here are some tips and suggestions:

Choose a less expensive destination
Take fewer trips or reduce the duration
Choose a location with a shorter distance where you can drive rather than fly
Sign up for price alerts on travel websites – shop around and check travel prices then book when rates are lowest
Take a close to home weekend getaway
Consider trying a staycation
Bring groceries and snacks with you and meal plan/prep rather than going to a restaurant for every meal
Try some cheaper (or even FREE) vacation activities such as local libraries, museums, art galleries, state or national parks, walking tours, etc.
Stay at an Airbnb, bed and breakfast, or with family or friends instead of booking an expensive hotel
Research all inclusive packages
Be aware of any hidden fees
Look into purchasing two one-way tickets rather than one round-trip ticket, as sometimes this may be less expensive
Don’t buy souvenirs and let your photos be your memories
Pull out your tents and air mattresses and try a camping trip
Vacation in an area where summer is not peak season

Whether you use some, all, or none of these tips, the key takeaway is: PLAN, PLAN, PLAN! Be flexible and creative – think outside of the box! Set a budget and stick to it. Research ahead of time. Decide where you may NOT be willing to cut back and decide how you can cut back in other areas to offset. Start saving NOW!

To speak with a Certified Financial Counselor and receive guidance and recommendations related to budgeting, credit, savings, debt, etc., please call us at 716-712-2060. We are happy to help!