Category: Budget

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 the FTC website 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:

  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 expenses, 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!