Author: Stacey Robb

Budget, Debt, Parachute Services

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:

  1. Choose a less expensive destination
  2. Take fewer trips or reduce the duration
  3. Choose a location with a shorter distance where you can drive rather than fly
  4. Sign up for price alerts on travel websites – shop around and check travel prices then book when rates are lowest
  5. Take a close to home weekend getaway
  6. Consider trying a staycation
  7. Bring groceries and snacks with you and meal plan/prep rather than going to a restaurant for every meal
  8. Try some cheaper (or even FREE) vacation activities such as local libraries, museums, art galleries, state or national parks, walking tours, etc.
  9. Stay at an Airbnb, bed and breakfast, or with family or friends instead of booking an expensive hotel
  10. Research all inclusive packages
  11. Be aware of any hidden fees
  12. Look into purchasing two one-way tickets rather than one round-trip ticket, as sometimes this may be less expensive
  13. Don’t buy souvenirs and let your photos be your memories
  14. Pull out your tents and air mattresses and try a camping trip
  15. 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!

Budget

The Importance of Budgeting

How many times have you tried to create a budget and stick to it?  It’s something that’s so difficult for so many people, so it can be tempting to stop even trying.  But before you give up… know that budgeting can be critically important to ensure your financial health and stability.  There are concrete ways to make a difficult thing more manageable (and maybe even fun)!


Why is budgeting so important?

  1. Tracking your expenses helps you control your spending, and save more money.  When you manage your finances without a budget, there really isn’t anything preventing you from spending beyond your means.  You may have a general idea about how much money you spend on certain things, but without actual (accurate) numbers, it’s easy to let your spending habits get out of control.  When you live on a budget, it’s much easier to see where you may be frivolously overspending, and when you can see waste that can be eliminated, you now have an ability to put that “extra” money into savings that you didn’t think you had before.  Who doesn’t love saving money?
  2. It helps you make wiser financial decisions and be better prepared for emergencies.  As I’m sure you already know, life comes with all kinds of emergency situations that can many times be very expensive.  If you plan for (and stick to) saving for these potential emergency expenses, you can avoid financial difficulties in the future.  From emergency room bills to unexpected home repairs, without mindful and intentional planning, you put yourself at risk of going into (sometimes significant) debt… that you may not even have the means to pay.  It’s recommended that you have approximately 3-6 months of living expenses in emergency savings.  That may sound overwhelming to many of you, but the good news is you can start small!  $100 is better than $0.  $1 is better than $0.  Focus on what you CAN do, and not what you think you SHOULD be able to do.
  3. It can improve your mental health.  Finances are incredibly overwhelming and stressful for many of us.  How many nights have you tossed and turned worrying about how you were going to pay your bills?  With a concrete plan in place, it takes away some of the headache that comes from wondering if you’ll be able to make it to your next paycheck.  Budgeting may be the unexpected self-care that you didn’t even know you needed.


How can you make budgeting work for you?

  1. Keep it simple!  Track all fixed and variable expenses, but don’t overwhelm yourself with 200 detailed categories.  Know how much you spend on “needs” vs. “wants,” and use it as a guide for where to dedicate your money in a way that helps you work toward your personal financial goals.
  2. Reward yourself!  Sticking to a budget requires consistency and discipline.  It’s an achievement in itself if you manage to do it!  Keep in mind if you DON’T stick to it, there is no need to punish yourself.  Use any setbacks as an opportunity to realize what went wrong, and how to fix it.
  3. Find a system that works for you!  Budgeting is NOT one size fits all!  Start easy.  The NFCC (National Foundation for Credit Counseling) has a simple expense tracker that can be a good place to start – https://www.nfcc.org/resources/planning-tools-and-calculators/monthly-budget-planner/.  There are many budget templates on the internet.  Do some research and find one that you like!


Need some further help with budgeting?  CCCS of Buffalo offers Financial Coaching Sessions, where you would meet one on one with one of our Certified Financial Counselors.  From budgeting advice to suggestions for more positive spending habits, you and your counselor would work as a team to create an individualized budget and determine the best plan of action to achieve your financial goals.  Your counselor would go over your income, expenses, and Experian credit report with you, and even review ways to build on and improve your credit.


Call us today at (716) 712-2060 to schedule an in person or telephone appointment!

Budget

Dealing with Inflation

As most of us are well aware, trips to the grocery store and the gas pump are emptying our pockets and draining our bank accounts more than ever before…

 

People talk about “inflation” all the time, but what does that really mean?  In plain terms, inflation simply refers to the increase in prices over time.  The inflation rate is a measure of how quickly those prices go up.  When the inflation rate is high, consumers lose purchasing power, meaning your dollar won’t go as far tomorrow as it did today.  The current annual inflation rate for the United States is 8.6%, up from 7% in 2021 – the largest annual increase since December 1981.  It averaged 3.27% from 1914 to 2022, reaching an all-time high of 23.7% in June 1920, and a record low of -15.8% in June 1921.

 

Inflation can have a serious impact on everyday expenses.  Energy prices have risen 34.6% and food costs are up 10.1%, but most of us likely have not seen wage increases to keep up with those rising costs.  So how can we manage our own financial situations to minimize those effects?  Here are four tips:

 

1. Consider (strategically) downsizing

 

Do you own any assets that may be worth more now because of inflation?  If so, now could be a good time to get rid of them.  Some items to consider could be used vehicles, furniture, equipment, and recreational goods such as toys and games, since these items have all seen major prices increases due to inflation.

 

2. Reduce or delay certain purchases

 

Many items, including everyday essential expenses, have seen drastic price increases.  Here are some examples that you may want to consider reducing or eliminating:

  • Gasoline
  • Cars
  • Clothing
  • Restaurants
  • Hotels
  • Toys/games
  • Furniture/home goods
  • Travel
  • Entertainment

 

3. Keep investing in your future

 

When money feels tight, it’s normal (and easy) to focus only on immediate needs and lose sight of longer-term goals.  You may be tempted to stop saving for retirement.  Even during difficult times, keep in mind that continuing to contribute to retirement and other long-term investments can be one of the best ways to fight the effects of inflation because it helps your money increase in value.

 

4. Review your budget

 

Any time prices go up, it’s important to revisit your budget – which can be as simple as making a list with all of your monthly income sources and current monthly expenses.  Budgeting may feel like it’s all about decreasing expenses, but it can also be a good opportunity to revisit your income and consider ways to bring in more money or resources.

 

Some questions to ask yourself about your expenses:

  • What can I reduce or eliminate?
  • Is there something I can put on hold, even if it’s just for a few months?
  • Am I being charged for services I don’t even use?
  • Can I negotiate or shop around for a lower price on expensive items?  Or perhaps consider secondhand?
  • Am I eligible for any discounts based on my individual situation (income-based, military/veteran, senior citizen, etc.)?

 

Some questions to ask yourself about your income:

  • Is there a way I can temporarily (or permanently) bring in more money?
  • Am I eligible for a pay raise or a promotion?
  • Do I have a product or service I could sell?
  • Am I eligible for any government benefits or other assistance?
  • Can another member of my household earn money or qualify for financial assistance?

 

If creating a budget to fight the effects of inflation seems impossible, you’re not alone!  Only about 1/3 of US adults say they have a plan for how they’ll spend each paycheck.  Instead of avoiding the task, why not get help from a professional?

 

Call CCCS of Buffalo, your Money Mentors, at (716) 712-2060 today to schedule an appointment to speak with one of our knowledgeable certified financial counselors!

Credit

Should I Get a Credit Card?

Opting for a new credit card is a decision that will impact your financial health in one way or another, so it should come with a careful analysis of your personal financial spending habits and goals.  Credit cards can be useful when they are used responsibly, but they can also be harmful if proper care is not taken to use them only when it would make sense to do so.

When does getting a credit card make sense?

  • If you want to build or rebuild credit history.  Without sufficient credit history, lenders will likely see you as a higher risk.  If you have limited or no credit, consider a secured card.  To build or rebuild credit with a credit card, it’s important to make 100% of your payments on time 100% of the time, and to keep your credit utilization ratio low.  The general recommendation is under around 30%, but people with high credit scores tend to keep it closer to around 10%.
  • If you need help financing a purchase or paying off debt.  Some credit cards offer introductory periods of 0% interest on purchases and balance transfers.  If you are able to pay the debt or major purchase during the promotional period, you will have essentially gotten an interest-free loan.
  • If you want to reward your spending.  Using a cash back or travel rewards card responsibly can help you save money by being rewarded for the things you purchase the most (think: gas or groceries).
  • If you want added payment security.  Credit card issuers typically offer a zero liability policy on fraudulent credit card charges, whereas if you use a debit card attached to your checking account, there aren’t as many protections.  Banks or credit unions may require written confirmation of the error and investigations can take much longer, which means your own funds may be tied up for a longer period of time.
When may getting a credit card NOT make sense?
  • If you want to increase funds available to you.  Generally speaking, applying for more credit to get out of debt or to make additional purchases is not ideal.  If you’re using credit cards for things that you aren’t able to pay off right away, you may end up paying a significant amount of interest on those balances.
  • If you’ve recently applied for a major line of credit.  If you’ve recently applied for credit for something significant (mortgage, auto loan, etc.), a credit card application will add an additional hard inquiry on your credit report.  This may also raise some red flags to lenders, who may suspect that you may need additional credit in order to keep up with payments on the major line of credit.
The bottom line is that you should carefully analyze your personal situation and weigh your options.  Opening a credit card account could be a great step toward reaching your financial goals, but keep in mind that managing it requires diligence and responsibility.
To speak with a Certified Financial Counselor and receive guidance and recommendations on appropriate steps to take to improve your credit situation, please give us a call at (716) 712-2060.  We would be happy to help!
Credit

*ACTION REQUIRED* Free Credit Monitoring from Equifax Data Breach Settlement

 

In September 2017, Equifax announced a data breach that exposed the personal information of 147 million people.  A settlement has now been reached and finalized, which will include up to $425 million to help affected individuals to receive free credit monitoring services, help recovering from identity theft that may have occurred, and even cash reimbursements for certain situations.

 

If you were affected by the breach, you are eligible for at least 4 years of FREE credit monitoring from all three credit bureaus – Equifax, Experian, and TransUnion – and up to 6 more years from Equifax, for a total of 10 years.  The settlement administrator recently began sending emails and letters to people who filed a valid claim requesting these monitoring services.

 

*ACTION IS REQUIRED!*

 

  • Eligible claimants will get free membership in Experian IdentityWorks℠ for four years.
  • This service is free for you. You do not need to provide any payment information to enroll, and you do not need to cancel the service when it ends.
  • To enroll, visit the Experian IdentityWorks website: www.experianidworks.com/equifaxsettlement, and enter the Activation Code from the email or letter you received.  You can also call 1-877-251-5822.
  • You must use the Activation Code by June 27, 2022. Your activation code will not work after this date.
  • Legitimate emails about this settlement will come from Equifax Breach Settlement Administrator info@equifaxbreachsettlement.com.  The administrator will NOT call you about the settlement, but you can reach the administrator by phone at 1-833-759-2982.

 

Unsure if you were affected, or if you are eligible for the free credit monitoring provided by the Equifax Data Breach Settlement?

 

 

CCCS of Buffalo offers Credit Report Review sessions, where you would speak one on one with one of our certified counselors who will pull all three of your credit reports from Equifax, Experian, and TransUnion, review everything that appears on your reports with you, go over ways to build on and improve your credit, and show you how to dispute anything if necessary.  Please call us at (716) 712-2060 to schedule an appointment!