Married with Student Loans? Choosing the Right Tax Filing Status is Critical

Navigating student loans is tough, especially when you’re married! One critical decision impacting your finances is your tax-filing status. Are you filing jointly or separately? Choosing incorrectly could mean missing out on valuable deductions like the student loan interest deduction or you could impact your eligibility for income-driven repayment plans, potentially costing you hundreds or even thousands of dollars.

EDCAP (Educational Debt Consumer Assistance Program), a program of the Community Service Society of New York, is hosting a FREE webinar to help you understand this crucial decision: Married and Managing Student Loans? Learn How to Optimize Your Tax Filing Status.

Join them February 18 at 6:00 PM EST as they explain the financial and tax implications of filing jointly vs. separately for married couples with student loans.

Register Now

Learn more about EDCAP:

EDCAP is a program of the Community Service Society of New York, dedicated to providing free, unbiased counseling and resources to student loan borrowers.

Visit edcapny.org to learn more.

Please share with those who might benefit! We look forward to seeing you there!

15 High Impact Money Quotes

Here are 15 quotes to help motivate you to work toward those financial goals for 2025!

“The more you learn, the more you earn.” – Warren Buffett

“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” – Robert Kiyosaki  

“Wealth consists not in having great possessions, but in having few wants.” – Epictetus

“The way to get started is to quit talking and begin doing.” – Walt Disney

“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” – Ayn Rand

“The goal isn’t more money. The goal is living life on your terms.” – Chris Brogan

“Do not save what is left after spending, but spend what is left after saving.” – Warren Buffett

“The future belongs to those who believe in the beauty of their dreams.” – Eleanor Roosevelt

“Believe you can and you’re halfway there.” – Theodore Roosevelt

“The only limit to our realization of tomorrow will be our doubts of today.” – Franklin D. Roosevelt  

“The mind is everything. What you think you become.” – Buddha

“It does not matter how slowly you go as long as you do not stop.” – Confucius

“It’s not your salary that makes you rich, it’s your spending habits.” – Charles Jaffe

“Money grows on the tree of persistence” – Japanese Proverb

“Every time you borrow money, you’re robbing your future self.” – Nathan W. Morris

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 situation? Check us out at https://parachutecreditcounseling.org/  or call 716-712-2060.

10 Money Moves for a Brighter Financial Future

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  1. Track Your Spending

We underestimate what we spend and we often have multiple (mostly small) budget leaks that can add up to BIG losses. Benjamin Franklin said, “Beware of small expenses. A small leak can sink a great ship”.  Think of a small leak in a pipe under a sink. While it is a small, maybe even an infrequent leak or drip, over time, the bucket below the sink can be full of water just a few days later! The same loss can happen to our hard-earned money if we are not mindful of how we are spending it. 

  • Review your spending plan (i.e., budget) regularly

Your budget or spending plan is simply a plan of what money is coming in every month and what money is going out. You want to pre-plan so you know if all your expenses are covered or if you need to concerned about a deficit. Your spending plan or monthly budget can actually be perceived as a wealth building plan if you prioritize regular savings, even small amounts that can help you avoid credit card debt and high interest charges. Your life changes over time and your budget needs to reflect these changes such as a job or income change, a new baby, a mortgage or planning for a vacation, etc. By regularly paying attention to your budget, you can gain greater control over your money and direct the funds where you want them to go – including your financial goals such as a new car, a new place to live, etc.  

  • Live Below Your Means

If you spend less than you make, you will always have some money! Of course, there are times you may need to borrow money and incur debt, but most debt should be based off of our needs and not wants and you don’t want to confuse the two. High interest credit card debt can quickly ramp up leaving you on a debt treadmill where you may be struggling just to make minimum payments. In the meantime, savings and financial goals suffer like buying a home or saving for an earlier retirement.

  • Automate your savings/investments

If you “set it and forget it” savings and investing becomes a very easy process and funds will grow over time with interest earnings. Don’t withdraw your funds unless there is a true emergency. Shop FDIC insured banks or NCUA credit unions and compare interest rates for the best returns on your money. Educate yourself on investing and understand the risk that can be involved or consult a financial expert who can help you make decisions for your level of risk tolerance. Investing can be both a very safe and also a very risky proposition depends on the decisions you make.

  • Have more than one income stream

By having more than one income stream, you help protect yourself against any future income losses. If you would ever lose a job, there would still be some funds coming in. Extra funds can always be used to pay down debt, build savings and provide a financial cushion for unexpected events (e.g., major car repair, home repair, illness) as life happens to everyone!  Having a cushion of savings and some financial breathing room helps emergencies becoming inconveniences and not the other way around! 

  • Hold a long-term view/save or invest for the long term

Saving and investing for the future is just that and money takes time to grow through compounding interest (interest earned that earns more money on itself). Warren Buffet describes compounding interest as “a snowball rolling down a hill” and Einstein described it as “The 8th wonder of the world.” Small amounts of regularly saved or invested money can grow to BIG savings and investment over time.  It requires regular contributions, time, attention and patience.  A perfect example of this is how many people save for retirement so they can enjoy many decades without working. 

  • Avoid excessive and bad debt

Bad debt is debt that has high interest attached sometimes making it impossible to pay it down, especially if it is credit card debt and you keep using the cards. Using credit cards to supplement your income or lifestyle can be a dangerous practice resulting in numerous decades of debt repayment – a debt treadmill where thousands of dollars are being paid out in interest. Bad debt is often unsecured, meaning it does not have any collateral behind it like a house, which can appreciate in value over time.      

  • Learn about money

Financial experts believe that success with money is 80% determined by our decisions and behaviors around our money. The more we learn about how money works and investigate why we make the decisions we make, the more successful we can be! There are lots of easy ways to learn about money! There are articles on online, websites, books, podcasts, documentaries on Netflix and more. There are also many people who work in the financial services industry like the financial counselors at Parachute who can provide trusted advice or point you in the right direction!      

  • Prioritize saving over spending

The key is to try to make regular savings a priority over spending, especially for those wants or luxury items as opposed our basic needs such as food, clothing, shelter, medical and transportation. Approaching your financial health from a savings mindset can help assure there are funds available for you for emergencies (thereby avoiding debt or as much debt) but also for future choices, opportunities and goals.  Having savings helps provide financial stability over time.  Make saving a habit early on for big long term pay offs! 

  1. Ask for Assistance

As said earlier, there are lots of ways to learn about money and get advice from others who work professionally in related fields. There are many books, podcasts, online resources and guides to help! You don’t need to go it alone as mistakes can be costly.  

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.

Our Relationship with Money

Our relationship with money is complex and often shaped by our upbringing, societal norms, religious and cultural background, and personal experiences. It can be a source of great joy and security, but also stress, shame, anxiety, and conflict. Understanding our relationship with money is crucial for achieving financial well-being and building healthy relationships.

Positive Aspects of Our Relationship with Money include:

  • Security and Stability: Money provides a sense of stability and security, allowing us to meet our basic needs, pursue our goals, and plan for the future when we are no longer working or able to work for our income. Retirement could involve 30+ years!
  • Freedom and Choice: Money empowers us to make a number of choices, from what we eat to where we live and what we do for a living. It enhances our freedom and autonomy.
  • Opportunity and Growth: Money can open doors to opportunities for further education, travel, and experiences that we pursue to enrich our lives and broaden our perspective on the world and others.
  • Contribution and Impact: Money can be used to make a positive difference in the world, supporting causes we care about and contributing to the well-being of others. It allows us to help others who may be struggling and help ease the suffering of people around the world.

Negative Aspects of Our Relationship with Money:

  • Stress and Anxiety: Financial instability, debt, and the pressure to achieve financial goals can lead to stress, anxiety, and fear. This can lead to poor mental and physical health outcomes for us.
  • Materialism and Consumerism: Excessive focus on material possessions and external validation through wealth can lead to dissatisfaction with ourselves and others and a sense of emptiness and lack of fulfillment.
  • Comparison and Frustration: Comparing our financial situation to others can fuel feelings of envy, inadequacy, and frustration, hindering our progress overall and toward our financial goals.
  • Relationship Strains: Financial disagreements, misunderstandings, and unequal financial contributions can strain relationships, affecting trust, communication, and intimacy. Money issues remain a top contributor to broken relationships and divorce.

Building a Healthy Relationship with Money:

We can work every day toward having a healthy relationship with money as every day gives us a chance to make different decisions. We can research the topic to better understanding our unique relationship with money and choose options that support our overall financial well-being. In doing so, we may help our own physical and mental health as well as improve our relationships with others.   

  • Financial Awareness: Develop a clear understanding of your income, expenses, and financial goals. Utilize budgeting tools and track your spending habits. You owe it to yourself to know where your money goes. You’ve worked hard to earn it!
  • Responsible Spending: Make informed decisions about purchases, prioritizing essential needs over impulsive wants. Avoid impulse buying and unnecessary spending to be sure you have what you need.
  • Saving and Investing: Set aside a portion of your income for savings and investments. Long-term financial planning ensures security and stability for the future. The importance of planning for the future cannot be underestimated.
  • Delayed Gratification: Prioritize long-term financial goals over immediate gratification. Delaying immediate pleasures can lead to greater long-term happiness and peace of mind.
  • Seeking Support: If you struggle with money management or have accumulated debt, seek professional guidance from a credit counseling agency like Parachute.  

Remember, our relationship with money is fluid and it can evolve and change over time. By understanding our own financial habits, recognizing our emotional triggers, and making conscious choices, we can develop a healthier and more balanced relationship with money, enhancing our well-being and enriching our lives.

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 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/

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.

Top 20 Inspirational Quotes That Relate to Money

We all need a little inspiration sometimes! Here are some great quotes to give inspiration around your finances:

  1. “The only reason for time is so we can experience change. The only reason for money is so we can experience life.” – Tony Robbins
  2. “Investing in yourself is the best investment you can ever make. It will pay the best interest.” – Warren Buffett
  3. Financial freedom is the ability to live the life you want, when you want, on your own terms.” – Robert Kiyosaki
  4. “If you’re saving, you’re succeeding.” – Steve Burkholder
  5. “The key to making money is to save money.” – Horace Greeley
  6. “Owning a home is a keystone of wealth… both financial and emotional.” – Suze Orman
  7. “The only time to buy something is when you can afford it.” – Thomas Jefferson
  8. “Financial peace isn’t the absence of money; it’s the absence of worry.” – Dave Ramsey
  9. “Budgeting is telling your money where to go, instead of wondering where it went.” – John Barnes
  10. “The more you learn, the more you earn.” – W. Clement Stone
  11. “Don’t tell me what your priorities are. Show me where you spend your money, and I’ll tell you what they are.” – James W. Frick
  12. “If you don’t find a way to make money while you sleep, you will work until you die.” – Warren Buffett
  13. “Formal education will make you a living; self-education will make you a fortune.” – Jim Rohn
  14. “Start where you are. Use what you have. Do what you can.” – Arthur Ashe
  15. “Don’t be afraid to give up the good to go for the great.” – John D. Rockefeller
  16. “The journey of a thousand miles begins with a single step.” – Lao Tzu
  17. “The best way to predict the future is to create it.” – Peter Drucker
  18. “You miss 100% of the shots you don’t take.” – Wayne Gretzky
  19. “The mind is everything. What you think you become.” – Buddha
  20. “Believe you can and you’re halfway there.” – Theodore Roosevelt

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.