In I Was Broke. Now I'm Not (you can read the intro HERE), a key principle that I share is the following fact:
INCOME – OUTGO = EXACTLY ZERO
I am debating holding a free seminar in Washington DC about this fact (maybe my representative will invite me). It seems that we have COMPLETELY neglected it!
This is a not a political statement. This is purely a statement of fact.
I submit my evidence:
- The national debt (which continues to increase – view it LIVE)
- Unfunded Social Security (My Social Security statement says that I can expect to only receive 70% of the stated benefits)
- Tax revenues are way down so the "fix" is to raise taxes – not cut programs
- When the OUTGO is clearly more than our INCOME, we have decided that this is not OK. The cure? Spend nearly $2 TRILLION dollars – using debt!
I am a simple person. This means I have to look at this in a simple way – using my own life as a learning tool.
Simple lessons I have learned …
- When I run short of funds, I have to stop spending or I will incur debt!
- No matter how much money I have, I possess an uncanny ability to spend ALL of it.
- When I run short of funds, I have to cut out spending – even on things that I really want!
- If my OUTGO does not include "saving money for emergencies and known, upcoming expenses), my financial plan will fail when emergencies happen or when the known, upcoming expenses occur.
- I have NEVER seen my bank account balance go up when I "saved money" at the store.
- Huge debt is always a recipe for disaster.
- A balanced budget requires sacrifice and compromise – from me, my bride, and my daughter
- It is never fun to say, "NO!" Especially to something we care a lot about.
What are your thoughts?