Steadfast FinancesShould You Adopt President Obama's 'Pay-As-You-Go' Rule in Your Family Budget? - Steadfast Finances

Should You Adopt President Obama’s ‘Pay-As-You-Go’ Rule in Your Family Budget?

Filed in Budgeting , Saving Money 2 comments

Just out of curiosity, what would happen if someone as powerful — and popular — as President Obama asked U.S. citizens to do something radical… like save money?

Sounds a little far fetched right?  Just weeks ago, main stream media went out of their way to remind us it was our patriotic duty to get out and spend.

However, in today’s 2010 budget proposal speech, President Obama mentioned he has asked Congress to implement the Pay-As-You-Go rule (also known as PAYGO).

If you’re not familiar with the rule, here is the basic gist:

Congress can only spend a dollar, if it saves a dollar.

However, when discussing the specifics of his budget proposal, he made a remark about personal finance that struck me as rare coming from POTUS:

“This [the pay as you go rule] is the principle rule that guides responsible families managing a budget.”

[Video: Pay-As-You-Go rule mentioned ~ 7:45 minute]

So is President Obama saying that roughly 75% or more of Americans with debt aren’t cutting the mustard when it comes to being adequately governing the family budget?

Was this a subtle hint from the President to suggest that while we must do a better job in Washington, we also need to determine why the family budget has failed so badly in the last decade?

You can draw your own conclusions, but considering the size of the hole we’ve dug for ourselves, I would have to say his message was a welcome reminder that all of us — both politicians and citizens — need to do a bit of self-reflection when it comes how much money we’re spending, and more importantly, what we’re spending our money on.

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Posted by CJ   @   7 May 2009 2 comments
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