Category: 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!

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!

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!

From time to time we like to share some of our staff’s suggestions on the best ways to manage your budget. Today we hear from Robby Dunn, Vice President of Counseling here at CCCS of Buffalo!

Robby’s Five Financial Budgeting Tips

1. Create a balanced budget – This may seem like very simple personal financial advice, but the road to recovery from debt or the accumulation of savings begins with a balanced budget. This means that you have more money coming in than that is going out every month. Track your income and expenses for 30 days and find out if your budget is balanced!

2. Consider viewing savings as an expense – Is savings an expense? Many individuals may argue that it is not as it is not necessary to save at all times, or every month. But, if you are saving, what are you putting those funds aside for? Home and Auto expenses? Vacation and gifts? Medical expenses? Those all sound like future expenses to us, and important ones at that! Perhaps if you view savings as an expense and make it a necessary item in your budget every month, your savings account may grow faster and you will be better prepared for what the future brings.

3. Prioritize your “wants” – Make a list of all the monthly expenses in your budget that are wants and order them from top priority to the lowest. This can be a clear and concise way to determine what really is most important to you in your life, and what can be the first items to cut back on, or eliminate all together, in an effort to have an improved budget.

4. “Meal prep” and pack your lunch – Meal prep has become a fancy new term often used by many athletes, body builders, and fitness competitors, but anyone can do it. Not only does it often lead towards healthier food choices, it is much more cost efficient. If you work Monday through Friday, use Sunday evening as a time to “meal prep” and make up to five lunches for the week in advance. Choose food items that will stay fresh and last the whole week like rice, pasta, beans, baked potatoes or sweet potatoes. Consider making a large batch of soup or chili that will last the week. Cooking in larger quantity always saves money and this will make it easy to pack lunches and avoid going out to lunch to spend up to $10 with relative ease!

5. Remain optimistic! – Although at times it can be very difficult and stressful managing our personal finances, try and remain positive and optimistic. Life will throw many things at us, and in our financial lives many problems can arise. Think long term and big picture in order to weather the storm and get back on track.

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 are happy to help!