Prior to starting my job as an Assistant Professor, I had never managed a professional budget before. I’d certainly managed my personal finances previously, but I’d never before had total oversight of a research budget and been responsible for figuring out how to spend it effectively and ensure that I wasn’t going over budget. This is one of those myriad of skills that you aren’t always exposed to as a graduate student or post-doc, although I do know some colleagues who managed research budgets before starting their faculty positions.
I’m pretty conservative with money and how I manage my funds is informed primarily by two things: I think that shopping around for the best price is a good idea and I like to know what the current balances of my accounts are so that I don’t ever run a deficit. These two approaches have served me well in the first five years of my position.
In my personal life I do not particularly enjoy shopping as an activity. The most frequent type of shopping that I do is grocery shopping and we have recently started to use the app Flipp in order to compare prices any given week and to price match items across different stores. I have transferred this idea to how I do the shopping of consumables and supplies for my lab. Usually several suppliers will offer the same or a comparable product; let’s use the example of 1.5 mL centrifuge tubes. In my lab I prefer the tubes to be clear, to seal well, and to withstand high centrifugation speeds. Taking these specifications into account, there are many suppliers and manufacturers who can provide me with a tube that will do the job. My next step is to figure out the price per unit and see who offers a good product at a reasonable price. For most items I’m willing to shop around and to try a new product, especially if the price point is cheaper than what I have previously been using. One thing to keep an eye on is whether there are shipping and handling charges in play. Often an item will seem less costly, but when you factor in the shipping costs that is no longer the case. I also have to make sure what customs charges apply if I’m importing an item from Europe or the U.S. since I’m in Canada as those charges can add a lot to the cost of an item.
In order to avoid running a deficit it’s important to plan ahead and estimate your future costs and also to have a really good idea of the current funds that you have available. Some costs are easier to project (e.g. student stipends, larger pieces of equipment) while some are more challenging to estimate (e.g. the price of agarose 3 months in the future). I’ve found that it’s been useful to go with higher than expected estimates in order to build a buffer into budgets.
I choose to run my research budget in this way because the vast majority if my research funding comes from Canadian taxpayers and they have a right to expect me to be responsible when it comes to spending those funds. I also refuse to put myself and my students in the position of running out of funds for their stipends as I feel that it is morally wrong and irresponsible. I won’t take on a student if I can’t pay for my portion of their financial support package.
I’d be interested to hear how other faculty do their financial budgeting for their research grants. Please leave your thoughts or advice in the comments!