In order to reduce the budget deficits that's happening with the government, they can do the following:

• Increase the taxes, particularly on the wealthy, as advocated by a large group in order to increase federal revenue therefore offsetting the deficit.
• Stimulate economic growth. It can be tricky because cutting taxes increases growth however we need to raise the taxed to maintain revenue.
• Reduce spending on certain government programs. Some are advocating to reduce spending on social programs while others, military spending. 

• Keep tabs on how much money you earn each month. It's important to know how much you make so that you'll be able to plan out your expenses.
• Make a checklist of your monthly expenses, down to the penny; and
• Allocate budgets to spend for certain matters that match your income.