BRYAN, Texas — We're all familiar with budget cuts, and with a global virus impacting the world over the course of three years, some of those budgets have had to be majorly reigned in.
We all know that life is unpredictable, but with April being Financial Literacy Month, a finance scholar wanted to bring budgeting misconceptions to light to help others get past the hurdle that is starting one in the first place.
"A budget is a plan, more than anything," said Evgenia Gorina, a finance scholar and professor at the University of Texas at Dallas.
Gorina also studies economic trends and government financial management, which is why she believes starting to budget now will help people become more financially fresh for the year.
A finance report showed that 60% of Americans have financial anxiety. Furthermore, it's reported that one in four Americans don't have a budget at all.
In addition to COVID-19 impacting the world three years ago, she explained that the misconception that you must keep budgeting frequently is a myth and meant to be a housekeeping type of task for you to regularly take stock of your expenses.
"I think the hardest part of budgeting is actually taking stock at your past expenses," said Gorina. "Coming to grips with what you actually spent last month and the month before is the hardest part."
It's not always an easy process because its a harsh reality many don't want to face, according to the UT Dallas professor.
So how much have you really been spending?
Here in Bryan-College Station, there are Chief Financial Officer bookkeepers like Lissa Meza to teach financial literacy. Meza also owns a company that helps small businesses with bookkeeping, payroll and more.
"It's easier to get more customers than it is to cut out half off your expenses," explained Meza when talking about how businesses have to budget.
Another misconception is thinking that it just takes saving $5 here and there to get rich, according to Meza. While it's something we all wish would be the case, she advises people to budget using your income as opposed to with your expenses.
"Try to be realistic as possible so you're not losing your mind trying to force yourself into a new habit," Meza said. "Life happens. It's okay if you spend more than what you had allocated in a budget, it's not gonna break you. You can still recover."
The reality of what you spend can be harsh, but it's necessary in order to move forward for your next budget. Additionally, knowing that life happens is how you slowly sew up your financial hole that's unique to you.