Deena Katz, associate professor of personal financial planning, has a philosophy she calls trade-off budgeting.
Trade-off budgeting is meant to encourage people to look at fixed money, the amount of money that must come out every month for essentials, and discretionary money, the money left over.
“If you go on a diet the first thing you think of is what you can’t eat,” Katz said. “When you go on a budget the first thing you think of is what you aren’t going to be able to do anymore.”
Trade-off budgeting is not intended to be resisted or imposing; it is recognizing what one is willing to give up in order to save for something else.
“Money has an amazing ability to fly out of your pocket the minute you put it in,” Katz said. “You want to make sure you have money that is specifically pinpointed for what you need.”
Saving money is more meaningful when there is a goal to save for. Katz remembers as a child saving 10 percent of her allowance, but it had little meaning until she wanted a new toy. The same goes for people saving to buy a house, or for retirement, because their money is going toward a specific purpose.
“In a budget, most of the time, people start out and have no clue where their money is,” Katz said.
Knowing what debt and spending look like individually will help determine the financial objectives one plans to make and the trade-offs that must be endured to get there. Consciously making decisions about money will help work toward financial goals.
Find Texas Tech news, experts and story ideas at www.media.ttu.edu and on Twitter @TexasTechMedia.
Contact: Deena Katz, associate professor of personal financial planning, Texas Tech University, firstname.lastname@example.org, or (806) 742-5050, ext. 237.
Audrey Rickel | Newswise Science News
Europe's microtechnology industry is attuned to growth
10.03.2017 | IVAM Fachverband für Mikrotechnik
Preferential trade agreements enhance global trade at the expense of its resilience
17.02.2017 | International Institute for Applied Systems Analysis (IIASA)
Astronomers from Bonn and Tautenburg in Thuringia (Germany) used the 100-m radio telescope at Effelsberg to observe several galaxy clusters. At the edges of these large accumulations of dark matter, stellar systems (galaxies), hot gas, and charged particles, they found magnetic fields that are exceptionally ordered over distances of many million light years. This makes them the most extended magnetic fields in the universe known so far.
The results will be published on March 22 in the journal „Astronomy & Astrophysics“.
Galaxy clusters are the largest gravitationally bound structures in the universe. With a typical extent of about 10 million light years, i.e. 100 times the...
Researchers at the Goethe University Frankfurt, together with partners from the University of Tübingen in Germany and Queen Mary University as well as Francis Crick Institute from London (UK) have developed a novel technology to decipher the secret ubiquitin code.
Ubiquitin is a small protein that can be linked to other cellular proteins, thereby controlling and modulating their functions. The attachment occurs in many...
In the eternal search for next generation high-efficiency solar cells and LEDs, scientists at Los Alamos National Laboratory and their partners are creating...
Silicon nanosheets are thin, two-dimensional layers with exceptional optoelectronic properties very similar to those of graphene. Albeit, the nanosheets are less stable. Now researchers at the Technical University of Munich (TUM) have, for the first time ever, produced a composite material combining silicon nanosheets and a polymer that is both UV-resistant and easy to process. This brings the scientists a significant step closer to industrial applications like flexible displays and photosensors.
Silicon nanosheets are thin, two-dimensional layers with exceptional optoelectronic properties very similar to those of graphene. Albeit, the nanosheets are...
Enzymes behave differently in a test tube compared with the molecular scrum of a living cell. Chemists from the University of Basel have now been able to simulate these confined natural conditions in artificial vesicles for the first time. As reported in the academic journal Small, the results are offering better insight into the development of nanoreactors and artificial organelles.
Enzymes behave differently in a test tube compared with the molecular scrum of a living cell. Chemists from the University of Basel have now been able to...
20.03.2017 | Event News
14.03.2017 | Event News
07.03.2017 | Event News
23.03.2017 | Life Sciences
23.03.2017 | Physics and Astronomy
23.03.2017 | Physics and Astronomy