Posted in Budgeting for Everyone, Debt Free, Taxes, Winning with Your Money

Federal Budget vs. Household Budget

Many Americans are very critical of how the federal government is handling the federal budget.  Yet, many Americans have the same issues within their own household budgets.  The problem with both is actually very simple.  We are spending more than we are making.

The federal government will take in $2.17 trillion in 2011.  They will spend $3.82 trillion.  This means they are spending $1.65 trillion more than they will make.  On top of that, they owe $14.2 trillion in debt. 

Let’s compare this to an average family in America.  If a family has an average income of $55,000, they would be spending $96,000 (175% of their income).  They would then add the $41,500 of 2011 debt to the already existing $366,000 of existing debt.

If this family came to me, believe it or not, I would be able to help them and eventually get them out of debt, with a lot of sacrifice and time.  They would have to lower their spending and raise their income.  It is really that simple with the federal government as well.  Budgets are just really big math problems.  The hard part is the emotional decisions and sacrifices that have to be made. 

I hope that we as a country can make it a priority to get our own house in order.  Complaining about the federal budget isn’t going to change anything.  You can bring about change, first, by changing your own household budget.  When you have a positive household budget, you are able to give more and help people who are in need.  We need to learn to help each other.  It worked for our grandparents and it will work for us.  If you can, financially, find someone to help today.  If you can’t, work on your budget so you can.  Americans helping Americans!  Love it!

Author:

Debbi is a personal finance expert, motivational speaker, and author of the award winning "The ABC's of Personal Finance", "26 Weeks to Wealth and Financial Freedom" and “50 Shades of Money”. In addition she hosts a worldwide weekly radio show and her advice has been seen in multiple media outlets including NBC News, Forbes, Money, US News, Experian just to name a few. Debbi has also been the President of Lovell Ministries since 2012.

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