The US National Debt has increased by $505,581,392,352 since our last update in September 2011.  Another quarter and we have dropped another $500 billion in the hole.

National Debt as of 1/13/2012

$15,227,955,687,201

Our nation’s leaders will soon be entering into the same conversation that they had just a few short months ago – because we are about to hit the debt limit AGAIN!

As was known by EVERYONE at the time we increased the debt limit, issuing the equivalent of another credit card to pay the bills of another credit card did not work.

My question is this:  At what point in time will this type of spending stop?

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This is a guest post by Mark Asbell, who recently became debt-free following the principles of I Was Broke. Now I’m Not.

The US National Debt has increased by $84,414,120,840 since our last update in August 2011.  Another month, another BILLION DOLLARS IN THE HOLE.

National Debt as of 9/14/2011

$14,722,374,294,849

When I was going broke I’ll never forget the moment I realized the hole I was digging was getting over $400 deeper every single month.  That doesn’t even count the large chunks of debt I got into in order to make big one time purchases.  Just our normal monthly expenses were $400 per month more than our monthly income.  At that time $400 a month was less than 1% of my annual income and my total debt was less than 4 times my annual income (including the mortgage).  So I was able to keep getting more and more credit in order to sustain our deficit UNTIL…  Lenders stopped giving me more credit.  We were maxed out.  We couldn’t pay what we already owed, so why would anyone lend me more?

The United States government is facing the same dilemma on a much grander scale.  Their total debt is 7 times their annual income (Gross Domestic Product), and the hole is getting deeper by almost 4% of their annual income EVERY SINGLE MONTH.  I’m no economist but I’ve been to broke and back and the US numbers are wayyy worse than mine were.  I know what I had to do to dig out of the hole, so what does digging out of the hole look like for the government?

Mark Asbell is a key member of the I Was Broke. Now I’m Not. team and has a blog focused on helping couples strengthen both their finances and their marriage - www.markasbell.com - For Richer or Poorer.

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Want a GREAT WAY to visualize and more fully understand the US National Debt?

Click HERE (or copy and paste the following link in your browser: http://usdebt.kleptocracy.us/)

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Here are the Top 7 Reasons It’s Hard To Balance The US Budget:

1. It’s hard to say “NO” to a good program  Let’s face it.  There are tons of great programs that are funded by taxpayer money.
2. Genuine disagreement  Smart people who are extremely passionate about their work have real differences in their beliefs and ideals.
3. Ever-changing leadership  Leadership changes every election cycle.  What was important in the last cycle may not be important during the next.
   
4. Politics  Ever heard of “We” versus “They”?
5. We can print more money  Fire up the printer, boys!  We need more $100 bills!
6. Others aren’t – Why should I?  It’s hard to be a leader who cuts spending when other leaders are continuing to spend at high levels in their own districts.
7. MANY AMERICANS AREN’T LIVING BY A BALANCED BUDGET THEMSELVES!  If Americans don’t live with a balanced budget, they don’t truly know the freedom that is felt when one has a plan that balances!

What additional items would you include?

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As the United States faces such a HUGE obstacle of increasing its debt limit yet one more time, I wrote the following letter to my elected representatives.  I encourage you to write YOUR REPRESENTATIVE and demand a BALANCED BUDGET!

Dear Representative,
I am writing to encourage you to continue to demand that spending cuts are tied to the national debt increase bill. When my own personal budget is faced with shortages, we do not continue to increase our debt – we choose to cut spending instead. Some of these cuts are not fun, but it is what MUST happen in order for my family to prosper.

The same is true for the United States. Please ensure that the fundamental rule of INCOME minus OUTGO must equal EXACTLY ZERO is applied to our budget. While it is absolutely imperative that the national debt is increased at this moment, it is essential that the necessary steps are put into action to ensure that this is THE LAST TIME that we increase our nation’s debt. I don’t want to hand a financially broken and bankrupt nation to my children. I appreciate your leadership and focus on this extremely important issue.

With the highest regard,
Joseph Sangl

I know that I am simple man, but INCOME – OUTGO = EXACTLY ZERO works with $1,000 or with $14,000,000,000,000!

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This is a guest post by IWBNIN team member, Mark Asbell.

It is very frustrating to see the US National Debt total consistently going up up and up with little to no plan for ever being able to fix it.  When Joe updated everyone in March about the new total US National Debt, I caught myself in the middle of a very disturbing thought and emotion.

It isn’t difficult to understand that the number is going up up and up, but the number is SO LARGE I can’t even begin to really comprehend it.  Throw all the analogies my way about how it would take so many hundred dollar bills that it would fill up the ocean or whatever – I still can’t really wrap my mind around $14,000,000,000,000 (trillion).

In March Joe posted how much $14 trillion translates for each of us as individuals if we all split it evenly.  The number is over $46,000 per person in the US.  I can understand $46,000, in fact I had heard a number like that before.  When I read that my portion of the bill was only $46,000 I caught myself literally thinking “my part hasn’t gone up that much since the last time I heard that number”, and I felt as though it wasn’t so bad.  That is a ridiculous thought to have, and it reminded me of a tragic flaw in the thought process I once had with my own personal finances.

For several years, my wife and I racked up a horrible amount of debt.  I never dreamed we would ever get behind on bills but we did.   As I think back on those times, I realize part of the problem was I would get a credit card bill, see the balance going up by large amounts and think “dang”.  But then I would see the minimum payment only go up a little bitty bit and I would think, “I can handle that for now and pay it off later.”  Fast forward a year or two – the same credit card balance was still going up and the minimum payment was eventually getting beyond my means.  I eventually had to reach a breaking point to turn things around.

My family almost lost everything when we hit our breaking point.  It doesn’t have to be that way for our personal finances OR our national finances.  We should be more concerned with what the OVERALL TOTAL US Debt is and take it VERY seriously that our share is going up a little bit more every day.  How long will it take for us to view that number as beyond our means?  What is the breaking point going to be for our Nation?

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If you weren’t able to read Part 1 and Part 2 of this series, you should do that first.

PART THREE Become informed

If you do not know where all of America’s money is going, it will be really difficult to speak with authority on the topic.   It is important to become informed – understand where the money goes and why it is going to each program.

Here are some great places to start becoming informed:

• Wikipedia Analysis of 2010 Budget
• US 2010 Budget From the US Government Printing Office
• US Governmental Accountability Office Start with the link provided – If you read it, it will SCARE you.   Seriously, if any business had this written about them, they would be shut down immediately.

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If you weren’t able to read Part 1 of this series, you should do that first.

PART TWO   BE READY TO SACRIFICE

This financial mess is ridiculous.   Instead of being a lender to many nations, we have become a debtor to many nations.   In order to get the budget to balance, we will need to CUT SPENDING.   This means that some great programs will suffer budget cuts.   It means that some great programs will be cut out altogether.

We must understand that the cuts do not mean that the programs are not good.   It just means that our nation is out of money!

I am a simple person, so let’s make this really simple.   If my budget shows a deficit, I MUST balance it to EXACTLY ZERO.   After all, it is my trademarked catchphrase: INCOME – OUTGO = EXACTLY ZERO

There are two ways to balance the budget:

1. Increase INCOME (raise taxes or stimulate the economy so that more taxes are paid)
2. Decrease OUTGO (reduce/eliminate programs)

Experts generally agree that some of both #1 and #2 must happen.   BOTH will require personal sacrifice.   Get ready.

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You’ve seen our monthly US National Debt updates,   and it is not good news.

If you are like me, the sheer enormity of it can cause one to say, “That’s really bad.”   Then …   nothing happens.   We do nothing about it.   Our leaders do nothing about it.

Collectively as a nation, we continue to spend ourselves to oblivion.

What CAN we do about it?   It turns out that we can do a lot!   Here are some ideas to get you started.

PART ONE   LIVE IT IN YOUR OWN LIFE!

Seriously – if YOU won’t live a fiscally responsible life – with a balanced budget, with manageable debt (or no debt!), with margin (savings), and continually planning for what’s next – why on Earth would we ever expect our leadership to do so?

Are YOU living it in your own life?   If you are, you have the authority and the authenticity to hold our leadership accountable.   If you are not, yet you are complaining about the debt and financial mismanagement – that is called … a hypocrite!

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One of the most compelling reasons for why we do what we do here at IWBNIN is the SOARING US National Debt.   Every month, we are going to highlight (lowlight) the increase to OUR national debt.   Then, we’re going to challenge everyone to do something about it.

National Debt as of 1/04/2011

$14,003,420,744,930

By the time this post was completed, the national debt increased by an additional $1 million.

If WE do not live our lives within our means – WE will never be able to hold our leaders accountable to do the same. I’m looking for some people who will commit to live within their means, save for a rainy day, refuse unending government handouts, and become wholly self-sufficient.   Who’s in?

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