Daughters and Deficits: What’s keeping me up at night?

Hey there, fellow moguls and mompreneurs!

Let’s chat about something that’s been keeping me up at night (besides my adorable daughters) – Uncle Sam’s spending spree.

Buckle up, because these numbers are wilder than a toddler on a sugar high.

Looking back, even during challenging times like the aftermath of the 2008-09 Great Recession, deficits of this magnitude were rare.

The Fiscal Fiasco:

• We’re spending way more than we’re making
• Like, $1.9 trillion more
• That’s 6.7% of GDP

The Revenue Rollercoaster:

Good news? We’re making more money than ever. Bad news? We’re spending it faster than a Real Housewife in Gucci.

We’ve never spent this much unless:

• We were in a huge war (think World Wars)
• Or the economy was in the toilet

But right now? Neither of those things are happening.

Let’s time travel real quick:

• 5 years ago, we were only overspending by 4.6%
• Now it’s 6.7%
• That’s a big jump in a short time

So why are we still in the red? Hold onto your lattes, folks.

The Spending Circus:

1. Interest payments are skyrocketing • From 1.8% of GDP in 2019 to 3.1% now • That’s the highest it’s been since 1995
2. Student loan forgiveness bonanza • Great for grads, not so great for our balance sheet
3. Healthcare costs are on steroids • Medicare and Medicaid are eating our lunch (and dinner)

So what can we do?

• We need to get smart about our spending
• Maybe cut back in some areas
• Find ways to make our programs/government more efficient

Imagine if this was your company:

• You’d be slashing costs faster than a hedge fund manager in a bear market
• Every expense would need to justify its existence
• ROI would be your new middle name

Questions to Chew On:

1. If America Inc. was your startup, what would you do differently?
2. How can we, the private sector, help right this fiscal ship?
3. What financial storm shelters are you building for your family and business?

The Real Talk:

This isn’t just about numbers on a spreadsheet. It’s about the world we’re leaving for our little CEOs-in-training.

Stay Sharp, Stay Savvy:

• Read those economic reports like they’re the latest bestseller
• Network and brainstorm with industry peers
• Plan for fiscal curveballs in your personal and business strategy

Remember, we’re the economic engines of this country. Our voice matters, our expertise counts.

So, what’s your take? How are you navigating these choppy fiscal waters in your life or business?

Let’s keep this conversation going.

After all, if we can balance our own books while juggling soccer practice and board meetings, surely we can offer some wisdom to the powers that be, right?

The Bottom Line:

As your financial advisors, it’s vital for us to share that the U.S. is facing some serious long-term budget challenges, particularly when it comes to government spending. For the last fifteen years, low interest rates have made it easy for the U.S. to push these concerns to the back burner, but that window is quickly closing. No matter who takes office after the election, it’s likely we’ll see a stronger focus on getting the nation’s fiscal health back on track, both in the next administration and well into the future. This could have implications for our economic outlook and your financial plan, so we’ll keep a close eye on how these policies unfold.
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