Tuesday, March 01, 2011

I Will Sacrifice - wIll You?


The President ordered the cabinet to cut a whopping $100 million from the $3.5 trillion federal budget!

I'm so impressed by this sacrifice that I have decided to do the same thing with my personal budget.

If I have a net income of $2,000 a month and expend the same on groceries, household expenses, medicine, utilities, etc, but it's time to get out the budget cutting ax, go line by line through my expenses, and cut back!

I'm going to cut my spending at exactly the same ratio -1/35,000 of my total budget. After doing the math, it looks like instead of spending $2,000 a month; I'm going to have to cut that number by 5.7 cents!

Yes, I'm going to have to get by with $1999.94 per month, but that's what sacrifice is all about. I'll just have to do without some things.

The Republicans want to cut $100 billion from the $3.5 trillion dollar budget.  That is 2.86%, and my equivalent cut would be $57.14 per month, or $685.71 per year.  That would make a bigger hit to my annual income.

The US budget deficit this year will be about $1.6 trillion.  If we were to cut that much (45.7%) from the budget, then my expenses would be only be $1085.71 per month. 

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