Are you looking for a great model to follow when planning your personal finances and household budget? Well, don't follow your favorite uncle and cousin. The US Government AND "cousin" Illinois are terrible at leading the way with how their own financial affairs are managed.
While sitting in St. Maarten this past week uploading photos, I stumbled across a great status update by Facebook friend, Laura Sterling of A Sterling Solution, who helps small business with her background in the area of taxes and being also in business for herself. It was quite timely especially now that more buying and purchasing decisions are happening in this time of the year.
Here's what her post had shared:
Why the U.S. was downgraded -
. U.S. Tax revenue: $2,170,000,000,000
. Fed budget: $3,820,000,000,000
. New debt: $ 1,650,000,000,000
. National debt: $14,271,000,000,000
. Recent budget cuts: $ 38,500,000,000
Let's now remove 8 zeros and pretend it's a household budget:
. 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 . Total budget cuts: $385
the numbers...the BIG numbers... they are accurate.
In our home we had to do DRASTIC cuts. If we do not NEED it ... we just do not GET it ... not right now.
United WE Stand ~ God Bless America and please open up everyones eyes and do it soon!
Now, I'm glad she put the numbers in a way most people can fathom. After all, how big IS just one trillion dollars after all? (Answer: If you spent $1 million per day since the day Jesus walked this Earth over 2,000 years ago, you would have ONLY spent a little over $700 billion by now...)
Bottom line: GET REAL with what you have coming in and going out. If you don't like what you have going out because you have less coming in you have two choices.
1) Shrink your dreams to fit your income OR
2) Expand your income to meet your dreams...financially, personally, spiritually, even health-wise.
I'm sure Laura can help you get closer to that point. This is the era of taking your intellectual capital, experiences and relationships then creating a sustainable business out of it. Your passion(s) can be profitable and allows you to use the other side of the tax code that most Americans do not use to take advantage of self-employment to reduce taxation and create lasting wealth.