INCOME – OUTGO = EXACTLY ZERO

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?

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