budgeting Archives

Unlock Summer Fun Without Emptying Your Wallet

Summer can be a time for fun, relaxation, and making memories. However, it can also be an expensive time of year with vacations, activities, and increased utility bills. By being mindful of your spending and implementing some smart strategies, you can enjoy all that summer has to offer without draining your bank account.

Budgeting and Planning

Create a Summer Budget: Before summer begins, take a good look at your finances and determine how much you can realistically allocate for summer-related expenses. Factor in any vacations, day trips, entertainment, potential higher utility costs, and any summer camps or activities for children. Just a little bit of planning can go a long way!
Track Your Spending: Once you have a budget, keep track of where your money is going. This will help you identify areas where you might be overspending and allow you to make any adjustments as needed. You can use budgeting apps, spreadsheets, or even a simple notebook.
Plan Affordable Getaways: Summer vacations are a highlight of the year for many, but they don’t have to be extravagant. Consider budget-friendly destinations, explore staycation options in your local area, or travel during off-peak times to save on flights and accommodations. Look for deals on hotels and activities well in advance.
Take Advantage of Free Activities: Many communities offer free events during the summer, such as outdoor concerts, movie nights in the park, and festivals. Check your local listings for free entertainment options. Parks and recreation centers often have low-cost or free programs and activities.
Pack Lunches and Snacks: When heading out for day trips or activities, pack your own food and drinks instead of buying them along the way. This can save a significant amount of money, especially for families.

Saving on Everyday Expenses

Save on Cooling Costs: Warmer temperatures often lead to higher energy bills. Use strategies like closing curtains and blinds during the day to block sunlight, using fans to circulate air, and adjusting your thermostat a few degrees higher. Consider using smart thermostats to optimize energy usage. Regularly maintain your AC unit by cleaning or replacing filters. Try to run the AC in off hours (early in the morning or at night) to take advantage of cooler temps.
Cook at Home More Often: Dining out can add up very quickly! Take advantage of seasonal produce and cook more meals at home. Plan your meals in advance and make a grocery list (and stick to it!) to avoid impulse purchases. Consider grilling outdoors to avoid heating up your house.

Look for Sales and Discounts: Keep an eye out for summer sales events, such as holiday weekend discounts and back-to-school promotions, for potential savings on various items. Many museums and attractions offer discounts for local residents or through daily deal sites.
Reduce Transportation Costs: When possible, walk, bike, or carpool instead of driving alone. This can save on gas and reduce wear and tear on your vehicle. Check if local public transportation offers summer passes or discounts.
Utilize Free Entertainment Resources: Take advantage of your local library for free books, movies, and even events. Explore free streaming services or borrow DVDs instead of going to the movie theater. If you do go to the movies, go to the matinee whenever possible. Ask for student and senior discounts.

Smart Spending Habits

Differentiate Needs vs. Wants: Before making a purchase, especially on non-essential items, ask yourself if it’s a need or a want. Prioritize essential spending and be mindful of impulse buys. Then, direct any savings to summer fun.
Use Cash Instead of Credit: For discretionary spending, consider using cash. This can help you stay within your budget and make you more aware of how much you’re actually spending.
Automate Savings: Set up automatic transfers from your checking account to your savings account at the beginning of each summer paycheck. Even small amounts can add up over time without you having to actively think about it.
Review Subscriptions and Memberships: Take a look at your recurring subscriptions and memberships (e.g., streaming services, gym memberships) and cancel any that you don’t use regularly.
Consider a Spending Cleanse: Before summer begins, try a “no-spend” week or weekend to reset your spending habits and identify areas where you can cut back.
Involve the Family: Give small jobs to each member of the family for shared summer goals. Have the kids look for and save change, host lemonade stands, help neighbors with errands or lawn work for some extra spending money.

By implementing these summer savings tips, you can enjoy the season’s activities and maintain a healthy financial outlook. Remember that even small changes in your spending habits can lead to significant savings over time!

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan by clicking Get Started Here:

GET STARTED HERE

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

FREE June 24 Virtual Workshop – “Have a Blast on a Budget: Summer Savings Hacks”

Have a Blast on a Budget: Summer Savings Hacks

NEW TIME!! Tuesday, June 24 from 6:00 p.m. – 6:30 p.m.

Don’t let rising temperatures lead to runaway spending! Discover smart ways to save on food, entertainment, and even your utility bills.

We’ll show you how to make small changes that add up to big savings. Unlock a summer that’s memorable and budget-friendly!

Register at: https://bit.ly/parachutesummer

Spread the word! Share the attached flyer with your employees, friends, family, clients – anyone who could benefit from these valuable tips.

See you there!

P.S. Don’t miss out on this FREE opportunity to take charge of your finances!

All workshop attendees will be entered to win a free Parachute appointment!

Budget, Parachute Services

10 Common Budget Mistakes You Can’t Afford to Make

Winging It (Not Creating a Budget): This one tops the list for a reason. Without a budget, you have no roadmap for your money. It’s like driving without a map or any sense of the directions – you might get where you’re going eventually, but it will likely be a bumpy ride with wasted resources like those small budget leaks that add up to BIG expenses over time.
Unrealistic Expectations: A budget shouldn’t be a strict punishment; it’s really a tool for empowerment. Don’t set yourself up for discouragement with unrealistic goals. Be honest about your spending habits and use past information (bank statements or receipts) to create a workable plan. Your budget can and should change over time with your life circumstances, so it is important to pay attention to it.

Forgetting Fixed vs. Variable Expenses: Imagine your budget as a sturdy table. Fixed expenses (rent, utilities) are the table legs – they provide stability. Variable expenses (groceries, entertainment) are the table top – they offer flexibility. Ignoring either category creates an unbalanced and wobbly budget.

Ignoring Sinking Funds and Unexpected Costs: Life happens – car repairs, appliance breakdowns, medical bills. Don’t let these events derail your progress. Factor in sinking funds (designated savings for anticipated expenses) and an emergency fund for unexpected costs. Even if you start small and use those funds to reduce some debt, it’s a win!

Not Tracking Your Spending: This is crucial for staying on track. You can’t manage what you don’t measure. Track your spending with budgeting apps, spreadsheets, or even a simple notebook. Identify areas where you can cut back and adjust your budget accordingly. Research budget apps at The Best Budget Apps for 2024 – NerdWallet.

Not Periodically Reviewing and Updating Your Budget: Your income and expenses might change over time. Maybe you get a raise, or your car insurance goes up. Regularly review your budget and update it to reflect your current financial situation.

Falling Prey to Lifestyle Inflation: As your income increases, it’s tempting to increase your spending along with it. Resist lifestyle inflation by sticking to your budget and prioritizing your financial goals. Use automatic pay deductions to go into your savings.

Neglecting Debt Repayment: Don’t let debt snowball out of control. Factor in minimum debt payments into your budget, and prioritize paying off high-interest debts first (credit cards) to save money on interest charges.

Not Automating Your Finances: Set up automatic bill payments and transfers to your savings account. This reduces the risk of missed payments and late fees, and helps you stay on track with your savings goals.

Giving Up Too Easily: Sticking to a budget takes practice. Don’t get discouraged by setbacks. Analyze what went wrong, adjust your budget, and recommit to your financial goals. Remember, progress over perfection!

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

Budget Strategies During Times of High Inflation

During times of high inflation, here are some budget strategies you can use to help stay financially sound during these times.

Track Your Spending:

Know Where Your Money Goes: Before you can make any adjustments, you need a clear picture of your spending habits. Track your income and expenses for a month using a budgeting app, spreadsheet, or even pen and paper. Research budget apps here – Research budget apps at The Best Budget Apps for 2024 – NerdWallet. Be honest with yourself about what you need and what you want. Needs reflect those things we need to survive. Wants can often wait for future paychecks.

Cut Back on Discretionary Spending:

Identify Areas to Trim: Once you see where your money goes, pinpoint areas where you can cut back. This could include dining out, entertainment subscriptions, impulse purchases or those small daily habits that add up quickly.
Embrace Frugal Fun: Find free or low-cost alternatives for entertainment. Explore local parks, museums with free admission days, or board game nights with friends. As the weather gets warmer, there are often many outdoor, low cost events.

Stretch Your Groceries:

Plan Your Meals: Plan meals around what’s on sale and utilize coupons. This reduces impulse purchases and food waste. This is an area where most people say they improve their budget and boost savings.
Consider Generic Brands: Store brand staples are often just as good as name brands at a fraction of the cost. Shop at discount grocery stores in your area such as Price Rite or Aldi.
Embrace Meatless Meals: Meat can be a significant expense. Try incorporating more vegetarian meals into your diet. Try to identify more high protein items like peanut butter, legumes, and tofu.

Be Strategic with Debt:

Prioritize High-Interest Debt: Focus on paying down credit card debt first, as high interest rates can quickly magnify the cost of borrowing. Start with those credit cards with the highest interest rates first. Know that you can contact your creditors if you are having trouble making minimum payments. They may be able to work with you to temporarily lower your interest or your payment amount to help you catch up.

Explore Balance Transfers: If you have good credit, consider a balance transfer card with a 0% introductory APR to temporarily reduce your interest charges.

Boost Your Income (if possible):

Explore Side Hustles: Look for ways to generate extra income, like freelancing, online gigs, selling unused items, making deliveries, etc. Check out 25 Passive Income Ideas To Help You Make Money In 2024 | Bankrate. Also, if inflation is eroding your purchasing power, consider having a conversation with your employer about a raise to keep your salary competitive.

Additional Tips:

Shop Around for Better Deals: Compare prices on everything from groceries to insurance to ensure you’re getting the best value.

Review Subscriptions: Audit your monthly subscriptions and cancel any you don’t use regularly.

Utilize Cash: Using cash for everyday purchases can help you stay more mindful of your spending. Multiple studies show that we spend less when using cash instead of a credit or debit card.

Research Ways to Lower Utility Costs:

Adjust Your Thermostat: A programmable thermostat allows you to adjust temperatures when you’re away or sleeping. Lowering your thermostat in winter and raising it in summer can significantly reduce energy use.

Unplug Unused Electronics: Even electronics in standby mode draw a small amount of power. Unplug chargers and devices not in use to eliminate “vampire energy drain.”

Wash Clothes Smarter: Wash clothes in cold water whenever possible and air-dry laundry when weather permits.

Shorten Showers: Every minute counts. Reducing shower time can significantly lower hot water usage and lower water heater temperature: Most water heaters are set too high. Adjust the thermostat to 120°F (49°C) to save energy without sacrificing comfort.

Fix Leaks: A leaky faucet or dripping showerhead can waste a lot of water and energy. Repair leaky fixtures promptly.

Switch to LEDs: LED lightbulbs use significantly less energy than traditional incandescent bulbs and last much longer.

Embrace Natural Light: Open curtains and blinds during the day to maximize natural light and reduce reliance on electric light

Consider Alternative Billing Options: Some utility companies offer time-of-day billing where rates fluctuate throughout the day. This can be advantageous if you can shift energy usage to off-peak hours.

By implementing these strategies, you can tighten your budget and make your money stretch further during times of high inflation.

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/

Debt, Parachute Services

How to Tackle That Debt

Feeling buried in debt? You’re not alone! This post explores practical strategies to tackle your debt, from budgeting tips to repayment methods, and help you achieve financial freedom.

Assess the Situation:

List your debts: Make a comprehensive list of all your debts, including the type of debt (credit card, student loan, car loan, etc.), the outstanding balance, and the interest rate. This will give you a clear picture of what you owe.

Track your expenses: Understanding where your money goes is crucial. Track your expenses for a month to identify areas where you can cut back and free up extra cash for debt payments.

Choose a Repayment Strategy:

There are two main strategies for paying off debt:

Debt avalanche: This method focuses on paying off the debt with the highest interest rate first. By eliminating high-interest debt quickly, you save money on interest charges in the long run.

Debt snowball: This method prioritizes paying off the smallest debt first, regardless of interest rate. Seeing debts disappear quickly can be a motivation to keep going and help you stay on track.

Create a Budget and Allocate Funds:

Budgeting: Create a realistic budget that allocates enough money to cover your essential expenses (housing, food, utilities), minimum debt payments, and ideally, extra money towards debt. Many budgeting apps and tools can help you with this.

Debt allocation: Assign the extra money you freed up to your chosen debt repayment strategy. Whether it’s the debt with the highest interest rate (avalanche) or the smallest balance (snowball).

Reduce Expenses and Increase Income:

Cut back: Identify areas where you can cut back on spending, like eating out less or canceling unused subscriptions. Every dollar saved can go directly towards your debt. Many people find meal planning at home helps them save a significant amount of money.

Boost income: Consider a side hustle or explore ways to increase your income at your current job. This extra money can significantly accelerate your debt payoff.

Additional Tips:

Pay more than the minimum: Make more than the minimum payment required whenever possible. This reduces the principal faster and saves you money on interest.

Explore debt consolidation: Consider consolidating high-interest debt into a single loan with a lower interest rate. This can simplify your payments and potentially save money.

Stay motivated: Paying off debt takes time and discipline. Celebrate your milestones and track your progress to stay motivated.

Consider a Debt Management Plan: Find a reputable not-for-profit agency that offers a debt management plan to help you reduce your monthly payments and overall interest while paying down debt sooner.

Remember, there’s no one-size-fits-all approach. Choose the strategy that works best for you and your financial situation. Don’t hesitate to seek help from a credit counselor (such as at Parachute).

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/

**NEW** We are now able to assist residents in the state of Texas! We are excited to extend our services to the Lone Star State!

Budget, Parachute Services

Spenders and Savers: Building Financial Harmony as a Couple

Money can be a major source of stress, especially for couples with different spending habits. But fear not, spenders and savers can achieve financial harmony with open communication, compromise, and a team approach!

Communication is Key:

Talk openly about your goals: Dream vacations, a new house, or a comfortable retirement – discuss your individual goals and find common ground. These shared dreams will be the foundation of your financial plan. Remember, you’re a team, so work together! This builds a stronger foundation for your future.
Understand each other’s “why”: Instead of labels like “spender” or “saver,” have honest conversations about the reasons behind your financial behaviors. Explore any anxieties, hopes, or past experiences that shape your views on money. Sharing these creates context and fosters empathy.

Planning for Your Future:

Budgeting Together: Create a realistic budget that reflects your income, expenses, savings goals, and some fun money! Budgeting apps can simplify this process. Take time to find one that works for both of you – it’s an investment in your future, together.
Saving and Spending: Allocate specific amounts for both short- and long-term goals, like an emergency fund or retirement. Don’t forget to include fun – a vacation fund or a “splurge” category – ensuring both security and enjoyment. Consider separate accounts for different purposes if that helps with organization.
Set Spending Limits: If impulse buying is a concern, agree on spending limits for specific categories. Consider using cash for non-essential purchases – we tend to spend less with cash than cards!

Compromise and Flexibility:

Be Flexible: There will be times when adjustments are needed. Be open to compromise, finding solutions that work for both. Recognize that needs may differ, and adjustments might be temporary. After all, delayed gratification helps achieve bigger goals!
Celebrate Your Wins!: Acknowledge and celebrate progress towards your goals together. This keeps you motivated and strengthens your commitment to building a secure financial future.

Additional Tips:

Regular Check-Ins: Schedule regular reviews of your budget and goals. Treat it like an important meeting – even 20 minutes a week can make a difference!
Seek Help if Needed: If managing finances feels overwhelming, consider seeking guidance from a financial advisor or counselor (like Parachute!) They can provide personalized advice and help you create a sustainable plan.
Communication is Key: Throughout the process, maintain open and honest communication about finances. Remember, building a healthy financial relationship requires teamwork and understanding.

By following these tips and fostering a supportive environment, spender-saver couples can navigate financial challenges, achieve their goals, and build a bright future together.

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/