The U.S. Budget vs. a Family Budget

Following are some numbers showing how the U.S. government spends money. These are big numbers, so it’s pretty hard to get any kind of perspective on what they really mean to you personally:  

U.S. Government Spending

  • U.S. Tax revenue: $2,170,000,000,000
  • Federal budget: $3,820,000,000,000
  • New debt: $ 1,650,000,000,000
  • National debt: $14,271,000,000,000
  • Recent [April] budget cut: $ 38,500,000,000

The Gainesville Tea Party has taken these very large numbers and given all of us a very simple way to wrap our heads around these complex figures by simply lopping off 8 zeros (i.e. divide by 100 million) to produce a “pretend” U.S. household budget correlated to the U.S. government’s budget:

Sample U.S. Household Spending (Correlated to Actual U.S. Government Figures):

  • Annual family income: $21,700
  • Money the family spent: $38,200
  • New debt on the credit card: $16,500
  • Outstanding balance on the credit card: $142,710
  • Budget cuts: $385 (You can see once you take off all those zeroes, that in comparison to the U.S. budget cut, this doesn’t amount to much of a cut.)

If you or I tried to pull off the kind of financial insanity you can see the U.S. government is attempting, we would be forced into bankruptcy!  My experience shows 90 percent of all Americans over-spend their income.  This is why so very few people have enough money saved for retirement.  Keeping  our nation’s spending in mind, as shown above, check how you are doing.  Place your numbers alongside the sample U.S. household numbers above and see if you’re acting just as irresponsibly as the federal government. Make changes as needed.

For help in making those change go to www.moneymastery.com or send me an email:  peter@moneymastery.com.