Learn tips to financially plan better this new year

By  | 

STEVENS POINT, Wis. (WSAW) -- Finance difficulties are a common struggles among those in the U.S., but one professor at UWSP has some tips that will help you go into the new year aiming for financial success.

"One of the main foundational principles that people should follow is to spend less than you earn," explained Dr. Dave Schalow UW-Stevens Point Professor of Business.

Dr. chalow mentioned that the key point to saving is to understand that reward you'll get at the end of it all.

Dr. Schalow shared that the basics of a budget are as follows:
Income - expenses = hopefully a positive number

"Unfortunately, for many people this is negative," Dr. Schalow explained. "Most budgeting focuses on cutting expenses, which is the painful part, and why most people don’t want to do it.

Schalow explained that the solution is to cut expenses that aren’t painful, like debt payments, and interest, cut their insurance costs.

"Most people make the mistake of cutting their Friday night fish fry which is their favorite thing in the entire world," Schalow said. "Finally, try to figure out how to make more money."

The next step is investing, which implies earning a competitive rate of return.

Schalow suggested that people be saving 10 percent as the bare minimum of their income.

Other quick tips Dr.Schalow mentioned to help bring in money and save are below and in the interview videos above:
-Become more valuable at your existing job
-Get a new or better job
-Get a part-time job
-Start a business on the side