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.
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In order to reduce the budget deficits that's happening with the government, they can do the following:
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).
A budget is an estimation of income and expenses over a set time. It is usually drawn up and re-evaluated periodically.
Budgets can be made for a person, a group, a business, a government, or anything else that makes and spends money.
With the 50/20/30 budgeting method:
As a personal financial planning tool, a written, monthly budget allows you to plan for how you'll spend and/or save your money each month and also keep track of your spending patterns.
With a budget, you can begin to prioritize your spending and better manage your money and financial future.
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