Many people will be ringing in the new year with resolutions to take better care of their finances. Here are some tips on how to budget better this year from a Freeman College of Management professor at Bucknell University.
“I think underlying any useful financial plan is a budget, you have to not just know what you spent in the past, but plan for the future,” said Stacy Mastrolia, accounting and personal finance professor at Bucknell University. She is an expert when it comes to budgeting, saving, and spending wisely.
“Making a deliberate conscious plan for how you want to use this resource that you’re given by the sweat of your brow should empower people should make people feel very positive about planning for their future,” said Mastrolia. She advises making a spending plan and tracking where your money is going through apps and spreadsheets.
“If you give every dollar of your income, that you worked really hard for, give it a job, so that it works really hard too. And if you decide what job it gets then you want to check and make sure that your money is doing the job that you assigned it,” said Mastrolia.
She says this year is more important than ever to stick to a budget because of rising inflation.
“We know inflation is here, and we know that it’s likely here to stay, at least for a while. which means our budgets are going to look different. Looking back and saying I was able to spend $100 A month last year on food, and now it cost me $125, you got to control the controllable,” said Mastrolia.
For those just starting out, she recommends taking a slow approach by paying attention to exactly what you are spending.
“Be kind to yourself, and give yourself time, nobody’s gonna build a budget down to the penny the first time out of the gate, January 1, it’s unrealistic, and you’re really just setting yourself up for disappointment,” said Mastrolia.
Some financial planning apps she recommends include: You Need A Budget, Every Dollar, and Mint.