Budget Archives - Parachute

Women and Money

Women may face unique challenges with money due to a number of factors. Such factors can make it more difficult for women to achieve their financial goals and obtain financial security. These factors include:

Pay gap: Women still earn less than men for doing the same work. According to the U.S. Census Bureau, currently women earn 82 cents for every dollar that men earn.
Lack of retirement savings: Women are more likely than men to be single and not have a partner’s income to help them save for retirement. They are also more likely to take extended time away from work to care for children or ill or older family members. This can impact their overall savings rate, their retirement savings rate and Social Security contributions.
Debt: Women are more likely than men to carry debt, particularly student loan debt. Consider this also in light of the pay gap (see above). This can make it difficult for them to save for other financial goals, such as retirement or a home.
Lack of financial literacy: Women may be less encouraged to gain a basic understanding of financial concepts, such as investing or budgeting. This can make it difficult for them to make sound financial decisions.
Societal pressures: Women may feel pressure to confirm to societal expectations and may use larger portions of their income on clothing, accessories, dry cleaning, shoes, beauty routines (e.g., hair and nails) and more.
Women live longer: According to the World Health Organization (WHO), the life expectancy for women in 2023 is 80.2 years, while the life expectancy for men is 73.3 years. This means that women can expect to live 6.9 years longer than men. This means they need their savings to be larger or last longer.
Living single, longer: More women are living single longer than men. In 2019, 34% of women ages 18 and older were living without a spouse, up from 28% in 1990. Meanwhile, 29% of men ages 18 and older were living without a spouse, up from 24% in 1990.
Under-presentation of women in finance professions: According to a 2022 report by the Financial Industry Regulatory Authority (FINRA), women make up 26.8% of the workforce in the U.S. investment industry. This is still significantly lower than the 49.7% of women in the overall workforce. One factor is the lack of female role models in the industry.

These challenges can make it difficult for women to achieve financial security. However, there are a number of things that women can do to overcome these challenges, such as:

Negotiate their salaries: Women can and should negotiate their salaries and seek out career coaching and/or mentoring to help with such processes. They should also be aware of the pay gap and consider this as they make job and career decisions.
Start saving early: Women should start saving for retirement as early as possible, even small amounts are helpful. They should also take advantage of tax-advantaged retirement savings plans, such as 401(k)s and IRAs.
Pay down debt: Women should focus on paying down debt, especially high-interest debt, such as credit card debt. This will free up more money to set aside funds to save and even invest.
Automate savings: Make savings as consistent and easy as possible by having a set amount taken out of each paycheck for emergency funds and future financial goals, such as buying a home.
Encourage finance careers: More girls and young women can be encouraged to study finance. More female-friendly workplaces can be created in the industry.
Get educated: Women should educate themselves about financial concepts, such as budgeting and investing. There are *many* resources available to help women learn about money, such as books, magazines, podcasts, websites, and financial counseling services such as Parachute! Spending at least 1 hour a week learning basic money matters is really helpful!

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan https://parachutecreditcounseling.org/dmp-calculator/

Would you like to meet one-on-one with one of our Financial Counselors to talk specifically about your budget? Check out our Financial Coaching Session https://parachutecreditcounseling.org/services/credit-budget-counseling/#financial-coaching or call 716-712-2060.

Budget, Parachute Services

“Stretching Your Budget When Money is Tight” – Part 2: Tips for automobile, transportation, and other general expenses

The majority of households will all likely go through periods where money is tight due to unexpected expenses, a significant life or job change, a medical hardship, inflation/increased prices, and much more! Here are some simple, but not insignificant ways, of stretching your dollars further. Small amounts of savings do add up!

Automobile/Transportation

Organize errands/trips so that you are not backtracking and using more fuel.
Be sure you have a competitive rate for your auto insurance. Bundle renters or home owner’s insurance with your auto.
Get regular oil changes and use regular unleaded gas, unless not recommended for your automobile.
Keep your tires properly inflated.
If you are having trouble making car payments, consider downsizing your car or talk to dealer about refinancing for lower monthly payment. This will extend loan and result in more interest being paid but will help out in the short term.
Take turns driving with your children’s friends’ parents.
Independent mechanics often charge less than dealers for auto repairs and maintenance. Ask friends and family members for recommendations.
Ask mechanic about using re-constituted parts.
Consider buying a pre-owned, certified car.
Set a weekly fuel budget and stick to it by limiting unnecessary trips.
If tires need replacing, check out pre-owned, quality tires.
Vacuum and wash/wax your own car.
In nice weather, walk shorter distances or ride a bike.

General Tips/Other

Put off wants (versus needs) for a few paychecks.
Use your public library.
Consider skipping having your nails done for a few weeks or months.
Wait for tax returns for needs that can wait or for future wants.
Plan vacations at least a year in advance to save for them gradually. Travel off season.
Look for free and low-cost entertainment events such as outdoor festivals and concerts, parks, hikes.
Check out local high school and college performances and events.
Attend movies in the afternoon at matinee prices.
Temporarily pause cable and other streaming services.
Buy clothes off season.
Go to consignment shops to either get cash for clothes you already have or to buy new items.
Borrow or trade tools and equipment with neighbors, family members and friends.
Check out estate sales, garage sales and flea markets.
Go to local Goodwill, Salvation Army and Savers stores.
Know what you have at home before you buy more clothes. Many people buy items they forget they have.
Look on Facebook Marketplace or Nextdoor for discounted or free items.
Look at “scratch and dent” rooms at furniture stores.
Consider painting or staining furniture instead of buying new.
Consider pre-paid cell phone plans as they often cost less.

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan https://parachutecreditcounseling.org/dmp-calculator/

Budget, Parachute Services

“Stretching Your Budget When Money is Tight” – Part 1: Tips for food, groceries and dining out expenses

The majority of individuals will likely go through periods where money is tight due to unexpected expenses, a significant life or job changes, medical hardships, inflation/increased prices, and much more! Here are some simple, but not insignificant ways, of stretching your dollars further. Small amounts of savings do add up! Part 1 will focus on food, groceries and dining out.

Groceries

Plan your meals for one week ahead, if possible. Be sure to inventory what you already have at home to avoid buying items that you do not need.
Make a grocery list to cover meals and stick to it! Plan the aisles you will go down when shopping, and try and avoid the others. You can get a store directory ahead of time to plan your route.
Avoid multiple trips to the grocery store. This counts down on gas and the temptation to buy more than you can afford.
Comparison shop by cost per ounce/pound, etc.
Avoid shopping when you are hungry, tired, or in a hurry. Also, try to avoid bringing a number of other people with you.
Calculate your costs with your phone, or using an app while shopping so there are no surprises at the register.
Consider ordering groceries online and utilizing curbside pick up to avoid going into the store to prevent buying items you don’t need.
Buy in bulk the items that you are sure you will use; such as paper products, hygiene products, etc.
Buy store or generic brands.
Only use coupons for those items you are sure you will use. Many times, food and groceries are purchased because we have a coupon, but then they are thrown out.
Plan some meatless meals that are still high in protein (e.g., cheese, peanut butter, legumes).
Meals do not have to be “standardized”. Kids may love pancakes for dinner!
Involve the family! Making dishes such as a casserole, lasagna, enchiladas, etc. together on a weekend can produce leftovers for part of the next week.
Consider growing a family garden of fruits and vegetables. If neighbors grow fruits and vegetables, trade or exchange with them.
Go to a farmers’ markets.
Consider discount grocery stores.
Check out your local dollar stores for items like toothpaste, shampoo, etc.
Ask for grocery store gift cards for holidays gifts and birthdays.

Dining Out

Make dining out a treat, and limit to special days.
Look for establishments that offer specific days when kids can eat free.
Share meals
Ask if you can order from the kid’s menu.
Ask for senior citizen or retiree discounts, if applicable.
Cut in ½ (or less) the number of times you go out to eat per week (e.g., grabbing coffee, fast food, lunches).
Don’t order beverages or alcohol when dining out. Eat dessert at home, or just go out for dessert.

Would you like to work on your individual budget plan with one of our knowledgable counselors? Contact Parachute today to schedule a one on one appointment! 716-712-2060 https://parachutecreditcounseling.org/services/credit-budget-counseling/#financial-coaching

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, Parachute Services

How to Budget Your Money: A Beginner’s Guide

Budgeting is a key part of financial management, but it can be difficult to know where to start. This blog post will provide you with a step-by-step guide on how to budget your money, so you can take control of your finances and reach your financial goals.

Step 1: Track Your Spending

The first step to budgeting is to track your spending. This will help you see where your money is going and identify areas where you can cut back. There are a number of ways to track your spending, including using a budgeting app, keeping a spreadsheet, or simply writing down your expenses in a notebook.

Step 2: Create a Budget

Once you have tracked your spending, you can create a budget. A budget is simply a plan for how you will spend your money each month. There are a number of different budgeting methods, so find one that works for you. Some popular budgeting methods include the 50/30/20 rule, the envelope method, and zero-based budgeting.

Step 3: Stick to Your Budget

The most important step in budgeting is to stick to your budget. This can be difficult, but there are a number of things you can do to make it easier. First, make sure you have a realistic budget. Don’t try to cut back too much too soon, or you’re likely to give up. Second, automate your budget. This means setting up automatic transfers from your checking account to your savings account. This will help you save money without even thinking about it. Third, track your progress. This will help you stay motivated and see how you’re doing.

Step 4: Review Your Budget Regularly

Your budget should be a living document. That means you should review it regularly and make changes as needed. Your income and expenses may change over time, so your budget should change too.

Step 5: Make a Plan for Overspending

Everyone overspends from time to time. It’s important to have a plan for what you’ll do if you overspend. One option is to have an emergency fund for unexpected expenses. Another option is to transfer money from your savings account to cover the overspending.

Step 6: Reward Yourself

When you reach a financial goal, be sure to reward yourself. This will help you stay motivated and keep working towards your goals.

Budgeting can be a challenge, but it’s worth it. By following the steps in this post, you can take control of your finances and reach your financial goals.

If you’d like more detailed, individualized assistance, contact Parachute Credit Counseling at 716-712-2060 or www.parachutecreditcounseling.org

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!

Budget, Credit, Debt, Parachute Services, Uncategorized

Parachute Celebrates National Consumer Protection Week

Looking to protect yourself from fraud, identity theft, and scams? Wondering about the best way to improve your credit, shop for a used car, or how to maximize your security online?

Parachute has information for you during National Consumer Protection Week (NCPW) — March 5 – 11, 2023 — and any time of the year. NCPW is a time when government agencies, consumer protection groups, and organizations like ours work together to share information about consumer rights and help people learn to spot, report, and avoid scams.

Go to parachutecreditcounseling.org for more information. Also, visit ftc.gov/ncpw to learn how to get free consumer education materials and read the latest from consumer protection experts.

As always you can reach out to us directly at 716-712-2060 or www.parachutecreditcounseling.org for your help and education on all things credit, budget and personal debt!

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!