News

Riza Demirer, PhD, professor and graduate program director in the Department of Economics and Finance at Southern Illinois University Edwardsville, contributed expert insights to WalletHub’s recent article, “What Is a Budget” authored by WalletHub Financial Writer Adam McCann. The feature explores the importance of budgeting and practical strategies for creating a financial plan, and advice from other revered financial experts.

“Budgeting is essentially the process of creating a plan to balance your expenses with your income, and the ultimate goal is obviously spending less than your earnings,” said Demirer. “Having a budget helps you to live within your means, prepare for expected and unexpected (or emergency) expenses and better handle your debt.”

While budgeting offers numerous benefits, Demirer acknowledged that it can present challenges, like limiting flexibility.
“It also requires careful examination of the different accounts where your money goes and forces you to prioritize your expenditures, which could be both time consuming and stressful, especially if some of the decisions you have to make clash with your lifestyle or spending habits,” said Demirer.

To help individuals create and maintain a budget, Demirer offered practical advice about tracking cash flow, like listing all your sources of income and expenses to understand your financial picture.

“Once you have a broad picture of the in and outflows, then identify what your needs and wants are and where you have flexibility to balance your spending,” said Demirer. 

Read about the rest of his advice on WalletHub.

PHOTO: Riza Demirer