Not sure if you got to watch the 60 Minutes section tonight on U.S. Comptroller General David Walker. It was a very powerful story about the impending financial crisis facing the country. It's been called the "dirty little secret everyone in Washington knows" - a set of financial truths so inconvenient that most elected officials don't even want to talk about them, which is exactly why David Walker does.
"What's going on right now is we're spending more money than we make...we're charging it to credit cards...and expecting our grandchildren to pay for it. And that's absolutely outrageous," he told the editorial board of the Seattle Post Intelligencer. If you have a minute, read over his presentation for the Fiscal Wake-up Tour and you will get an idea of how big the problem is and how fast it is growing. 
The U.S. government is capable of spending more than it makes and for now, it is getting away with it. Families and businesses are not able to do the same without ending up in bankruptcy court sooner than later. I bring up the troubles facing the U.S. to make a point that I think applies to individuals as well as our country - there are no easy choices. Sometimes it is very difficult to figure out where to cut spending in order to borrow less and pay down the existing debt we have.
Cutting out spending is not fun, easy, or popular, but then again, neither is bankruptcy. I do not want to sound like an alarmist or a financial doomsayer. I do want to highlight the importance of reducing our dependence on borrowing. I understand it is not realistic for every family in America to be debt free. I think that it is important and responsible to approach debt with caution. Your current debt-to-income ratio represents how leveraged you are and demonstrates the monthly income required to service that debt.
The Empty Mailbox Project is about owing less and saving more. It is more of a journey than a destination. Making your existing or proposed mortgage payment on time is going to be easier as you have less debt. The tough choices we make about our spending will define us (credit score) and our country.
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