Defining Budget Deficits
When you spend more than you earn and the total amount of money that you're spending turns out to be more than the amount that you're brining in causes a budget deficit.
For example, if you spend $100 per week but earn less than that every week, that's a budget deficit. In addition, should you continue this kind of excessice spending, you will likely end up in debt.
Budget deficits can happen in both small and large scales (individual - nations).
10
50 reads
The idea is part of this collection:
Learn more about moneyandinvestments with this collection
Understanding the basics of cryptocurrency
How to store cryptocurrency securely
Risks and benefits of investing in cryptocurrency
Related collections
Similar ideas to Defining Budget Deficits
The Causes of a Budget Deficit
The main cause of a budget deficit is: spending more than what you're making!
However, when it comes to large scale-spending, like how the government spends, it can be difficult to track due to low taxes and high spending.
Track Your Time
Measure the total amount of time you invest each year to earn money. It includes the time you spend to commute to and from work, and time spent working on a side hustle or dropping your kids at daycare.
If you're unsure how much time you spend working, use 2,500 hours per year as a starting...
Sticking to a budget
Once a budget is set up, it is not always that easy to stick to it. But that doesn't mean you have to give up because you've failed once or twice.
- Remember the big picture. A budget keeps you out of overwhelming debt and help you build to financial freedom.
- ...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates