savings Archives - Parachute

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

Join us for a FREE Parachute virtual Zoom workshop: Financial Fumbles: 10 Mistakes Sabotaging Your Savings

JOIN US! This workshop will review the top ways we often fumble with our savings. Learn the small behaviors (habits) that can add up to big returns and grow our savings in strong ways PLUS hear about current Bank-On efforts to make banking more accessible.

Financial Fumbles: 10 Mistakes Sabotaging Your Savings

NEW TIME!! Wednesday, May 14 from 5:30 p.m. – 6:00 p.m.

Register now! Spots are limited!

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

Spread the word! Please share 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!

Budget, Parachute Services

Budget Strategies During Times of Inflation

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

Track Your Expenses and Spending Habits:

Know How Much You are Spending and Where It is Going: Before you can make any helpful 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 at https://www.nerdwallet.com/article/finance/best-budget-apps. Be honest with yourself about what it is you truly need and what you want. Be real about this for maximum effect. Needs reflect those things we need to survive like food, clothing, medical care and shelter. It’s a matter of degree! For example, we all need to eat, but we can choose prepared meals at home based off of a grocery list versus eating out at a restaurant several times a week. Wants can often wait for future paychecks.

Cut Back on Variable Spending:

Identify Areas to Trim: Once you see where your money goes, pinpoint areas where you can cut back and eliminate those pesky budget leaks! Think for a moment of leaking pipe under your sink. After you place a bucket there for (even a small) leak, and come back 3 days later, you will find that bucket is nearly full of water and heavy. It’s the same impact on our budget with the dollars flowing out. Our leaks can include regularly dining out, hidden fees, entertainment subscriptions, impulse purchases or our small daily habits that add up quickly. It also is eye opening to run the numbers and see what we are actually spending.
Embrace Frugal Fun: Find free or low-cost alternatives for entertainment. Explore local parks, plays or shows at high schools or colleges, 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 can greatly tighten their budget and boost savings to “pay themselves”.
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. Even check out dollar stores for staple items.
Embrace Meatless Meals: Meat can be a significant expense. Try incorporating more vegetarian meals into your diet. Identify more high protein items like peanut butter, legumes, and tofu and eggs when reasonably priced. Stock up when these items are on sale.

Be Strategic with Debt:

Focus First on High-Interest Debt: Focus on paying down credit card debt first, as high interest rates can quickly increase 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. The sooner you address, the more you save.

Explore Balance Transfers: If you have good credit, consider a balance transfer card with a 0% introductory APR to temporarily reduce your interest charges. Be disciplined and use the new card for balance transfers only and pay it down before the introductory rate ends. This is critical!

Boost Your Income (if possible):

Explore Side Hustles: Look for ways to generate extra income, like freelancing, online gigs, selling unused or unwanted items, making deliveries, etc. Check out https://www.bankrate.com/investing/passive-income-ideas. Also, if inflation is eroding your purchasing power, consider having a conversation with your employer about a raise or extra hours to keep your salary competitive. Use that extra money to pay off debt or build savings, even very small amounts of savings matter in the long run.

Additional Tips:

Shop Around for Better Deals: Compare prices on everything from groceries to insurance to ensure you’re getting the best value. This helps you avoid impulse buying if you prioritize your research

Review Subscriptions: Audit your monthly subscriptions and streaming services and cancel any you don’t use regularly even if you need to do this temporarily.

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. When you do use cash, save all that change.

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 often 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. Some folks actually set a timer!

Fix Leaks: A leaky faucet or dripping showerhead can waste a lot of water, energy and money. 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 for things like running a dish washer and washer/dryer.

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/

Budget, Debt, Parachute Services

Creative Ways To Easily Save

Saving money doesn’t have to be boring and routine! Here are some creative ways to easily boost your savings and get closer to those money goals!

The “No Spend” Challenge:

How it works: Choose a specific period (a weekend, a week, a month, or even longer) where you commit to not spending any money on non-essential items. This means you have to be very honest about what is a “need” versus a “want”. It also means no impulse buys, no dining out, and sticking to only necessary expenses like groceries and bills.

Why it works: This challenge makes you more aware of your spending habits and helps you identify areas where you can cut back (i.e., where your budget leaks are). It can also be a fun way to test your creativity in finding free or low-cost alternatives for entertainment and activities.

2. The “Spare Change” Jar:

How it works: Designate a jar or container specifically for spare change. Every time you receive change, whether from a purchase or as a gift, put it in the jar. You’ll be surprised at how quickly it adds up! It also encourages you to spend the cash you have on hand and not use a credit card or debit card where you may be spending more.

Why it works: This is a simple and effortless way to save money without making significant changes to your spending habits. It’s also a great way to use up loose change that often gets lost or forgotten.

3. The “Envelope System” for Budgeting:

How it works: Allocate a specific amount of cash for different spending categories (e.g., groceries, entertainment, dining out, etc.). Place the cash in separate envelopes labeled with each category. Once the money in an envelope is gone, you can’t spend any more in that category until the next month. This method has gained great popularity lately.

Why it works: This method helps you stick to your budget and avoid overspending in certain areas. It provides a tangible way to track your spending and encourages you to be more mindful of your money.

4. The “Round-Up” Rule:

How it works: Whenever you make a purchase, round up the amount to the nearest dollar (or even higher) and transfer the difference to your savings account. For example, if you spend $23.50, round it up to $24 and transfer the extra $0.50 to savings, even if in the change jar. Remember to use cash whenever possible.

Why it works: This is a painless way to save small amounts of money consistently. The rounded-up amounts may seem insignificant on their own, but they can add up to a substantial sum over time.

5. The “30-Day Rule” for Impulse Buys:

How it works: Whenever you’re tempted to make a non-essential purchase, wait 30 days before buying it. This gives you time to evaluate whether you truly need the item or if it was just an impulse.

Why it works: This rule helps you avoid buyer’s remorse and prevents you from wasting money on things you don’t really need. Often, after 30 days, you may realize you no longer want the item or find a more affordable alternative that helps you save additional money.

6. The “No Spend Day” Challenge:

How it works: Choose one or more days each week where you commit to not spending any money at all. This includes avoiding all purchases, even small ones like coffee or snacks. This habit can result in powerful savings over time.

Why it works: This challenge encourages you to be more resourceful and find free or low-cost ways to entertain yourself and meet your needs. It can also help you break the habit of spending money out of boredom or habit.

7. The “Cashback Rewards” Strategy:

How it works: Take full advantage of cashback rewards programs offered by credit cards or shopping apps. These programs give you a percentage of your spending back as cash, which you can then deposit into your savings account but be sure not to overspend for the sake of rewards.

Why it works: This is a way to earn money while you spend, making your purchases more rewarding. Over time, the cashback rewards can accumulate into a significant amount of savings.

8. Weekly $ Saving Challenge

How it works: Start by putting a dollar into your savings account in the first week.

Then, increase the amount to $2 in week two, $3 in week three, and so on. Over the course of one year, you will have contributed a hefty amount toward savings. If you start this week, then your savings will total nearly $1,400 by this time next year.

Why it works: It starts you on a path of developing an ongoing savings habit with reasonable amounts of money and shows you what you can accomplish with consistency.

9. The Penny Savings Challenge

How it works: Start by putting 1 penny away on day 1, 2 pennies on day 2 and so on so that you are adding another penny each day. Prepare to do this for 365 days consistently. Once you reach day 365, you will have $667.95!

Why it works: This example shows you the power of even very small amounts of money saved over time and how money grows from small, manageable habits.

Remember, the key to successful saving is to find methods that work for you and that you can stick to in the long run. This can result in significant savings. Don’t be afraid to experiment with different strategies and adapt them to your specific needs and preferences for savings success!

Keep reading about additional, effective ways to boost your savings!

15 Creative Ways To Save Money Without Making Significant Changes | Bankrate

40 Simple Ideas for How to Save Money Fast – Synchrony Bank

10 Creative Ways to Save Money | Space Coast Credit Union

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan

GET STARTED HERE

Budget, Parachute Services

Breaking the paycheck-to-paycheck cycle

Living paycheck to paycheck can result in the inability to cover necessary and unexpected expenses and be mentally and physically stressful. It can result in the accumulation of debt and the inability to gain financial security over time.

Here are some ways to break the paycheck to paycheck cycle and work towards long term financial stability. Being patient and consistent with the process is important.

Track your spending. This will help you understand where your money is really going and identify areas where you can cut back, at least temporarily. There are many different ways to track your spending such as using a writing it down in a notebook, using your bank’s online spending tracker or using a budgeting app. Do you research as to the best app for you. Check out The Best Budget Apps for 2024 – NerdWallet. If you are serious about breaking the cycle, make the commitment to really see where your money is going as this is way to gain control over it.

Create a budget. Once you know where your money is going, you can create a budget to help you to live within your means. A budget is a plan for how you will spend your money each month. Think of it as a foundation to help you build long-term financial stability. It should include all of your income and expenses, and it should help you save money each month.

Cut back on unnecessary expenses. Be honest with yourself about what is a “want” and what is a “need”. Take a close look at your budget and see where you can cut back on unnecessary expenses. This may mean eating out less, canceling unused subscriptions, shopping around for better insurance rates, and reviewing and organizing your clothing before buying something new.

Pay off debt. Debt can make it difficult to break the paycheck-to-paycheck cycle. Make a plan to pay off your debt as quickly as possible by making more than the minimum payments each month. Paying anything over the minimum required can help! At least double your minimum payments, if possible, whenever possible.

Increase your income. Try to increase your income by getting a raise at your current job, working extra hours, or getting a second job. Consider selling items you no longer need or want. 7 Ways to Increase Your Income – Experian

Involve your family. Schedule some family creative savings meetings.

Here are some additional tips:

Set financial goals. What do you want to achieve with your money? Do you want to buy a house, a car, save for retirement, or pay off debt? Having financial goals will help you to stay motivated and on track. Be sure your goals are specific and detailed as research shows you are more likely to achieve them.

Automate your finances. Set up automatic transfers from your checking account to your savings account each month. This way, you will be saving money without even having to think about it. You can also redirect some money from your paycheck directly into a savings account. Make it hard to withdraw from that account by not using a bank card.

Make sacrifices. Breaking the paycheck-to-paycheck cycle may require you to make some sacrifices. Before you buy something, ask yourself out loud, “Is this a want or need?” “Can it wait until my next paycheck?” It will be worth the sacrifices in the long run especially as you begin to see the accumulation of those savings! This will empower you and motivate you to keep going.

Breaking the paycheck-to-paycheck cycle definitely takes time, effort and commitment, but it is possible! By following the tips above, you can start to build a more secure financial future for yourself and your family.

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/