3 steps to rein in your runaway spending

Dear reader, this is your friendly reminder that not everything is Washington D.C.’s fault.

“Now, wait a minute,” you might be thinking. “Isn’t this Convention of States? Aren’t you guys all about reining in the federal government?”

Why yes, I’m glad you asked!

Here at Convention of States, we’re hard at work to implement the Founder’s Article V solution to government overreach and corruption. We—like most Americans—believe that our federal government is dangerously out of hand. We also know that government never willingly gives up power. Therefore, the only option left to liberty-loving Americans is for the states to use Article V of the Constitution to check and balance our federal behemoth.

One of the most prevalent areas of concern for our supporters is fiscal responsibility—when it comes to finances, no one is more irresponsible than Uncle Sam. Even as the nation staggers under $31 trillion in debt, our elected officials continue to throw money to the wind as if it grew on trees.

Just last week, Convention of States reported that our government had given over $1.3 billion to “pointless projects” in Russia and China, including, for example, “$770,466 to a state-run lab in Russia to put cats on treadmills.” Additionally, the U.S. spent “$1.7 billion maintaining empty government buildings [emphasis added]” and “$28 million on forest camouflage uniforms to be used in the deserts of Afghanistan.”

Another report delineates how our government used “COVID relief funds” to build a luxury hotel (for $140 million) and purchase Porsches, Ferraris, and Lamborghinis (to the tune of $31.5 million). We also financed a Gandhi museum in Houston, loaned Kanye West $2 million, and used a COVID-19 stimulus package to outline the reincarnation of the Dalai Lama.

All this and more is happening even as our economy flounders and recession looms. The truth is as obvious as the hat on his head: Uncle Sam is terrible at finances.

But what about you?

It’s easy to blame Washington for everything; it’s a lot harder to take responsibility for where you fall short. Especially as the nation braces itself for financial fallout, you must prepare yourself and your family for whatever is to come—no bureaucrat can do it for you. And if you fail, no bureaucrat can be blamed.

The first step for any American interested in reining in their own runaway budget is to (no surprise here):

1. Make a budget

Being responsible with finances is a lot like dieting: you can want to do better, but until you actually put together a step-specific plan, you probably won’t.

It may seem like “just a little here and a little there”—until you check your bank account or step on a scale. Most of you would probably be shocked to see just how much you’ve spent over the past six months. No wonder you can never get ahead; you don’t have a plan! Creating and implementing a budget is the first step toward not just wanting to be responsible with your money, but actually behaving responsibly.

2. Cut back

Once you’ve assessed how much you spend on a regular basis and put together a budget, look for ways to cut back. The hard truth is that most Americans spend too much money. Way too much. For example, the average American spends about $1,100 on coffee every year. If they took just that money and invested it instead (starting at the age of 25), they could have $286,000 by the time they retired—instead, they will spend over $40,000 on coffee in the same amount of time (assuming they keep their coffee-drinking habits up) and have nothing to show for it.

Additionally, the average American gamer will spend $58,368 over a lifetime on video games; the average Amazon Prime member spends $1,400 on the site every year. Across all metrics, it becomes clear that Americans are profligate spenders. And just as we’d advise Uncle Sam to cut back on money to casinos for pigeons and transgender monkeys, maybe it’s time We the People cut back on our needless expenses, as well. 

3. Consult successful financial experts for advice—not your friends

Most Americans are not good at finances. Most Americans also take financial advice from their friends, which, considering that their friends are probably not good at finances either, is the perfect recipe for disaster. Rather than learning from experts with proven track records, we simply affirm each other and our bad habits.

But if you want to break that mold, it’s time to stop modeling your life off of what is considered “normal” in America. As Dave Ramsey often says, “Normal is broke.” Just because your friends spend $1,100 every year on coffee doesn’t mean you have to. Just because they live paycheck to paycheck doesn’t mean you should follow suit.

If you want to be successful, emulate successful people. This principle is true politically, spiritually, and in relationships. It’s certainly true of finances, too.

We all would love to see Uncle Sam implement these basic rules for fiscal responsibility, but of course, until we call an Article V convention, he won’t. The good news is that you can. Don’t use our out-of-control federal government as an excuse for not being financially responsible or prepared. Take responsibility for the man in your mirror and the wallet in his pocket, and rein in your runaway spending today.