The National Budget without all of the Zeroes. Numbers You Can Put Your Head Around.

Real Estate Agent with Atlanta Communities Real Estate Brokerage GREC #208281

Million, Billion, Trillion.  Sometimes it's difficult to comprehend such large numbers.  Therefore, our national debt and our federal budget don't really seem real.  A $38 billion cut might actually seem like a lot to a $3.8 trillion budget. 38 is bigger than 3.8, isn't it.  It's difficult to do the mental math and keep the conversions correct in one's head when different units are used in the same discussion.  I wanted to bring those big numbers down to everyday numbers so it's easier to comprehend.

First, here are some national budget numbers:

U.S. Tax revenue: $2,170,000,000,000
Fed budget: $3,820,000,000,000
New debt: $ 1,650,000,000,000
National debt: $14,271,000,000,000
Recent budget cut: $ 38,500,000,000

Admit it.  It's tough to see through all of those zeroes.  So let's just remove 8 zeros and bring it down to terms of a family budget:

Annual family income: $21,700.
Money the family spent this year: $38,200.
New debt on the credit card this year: $16,500.
Outstanding balance on the credit card: $142,710
Total budget cuts: $385.

What sort of credit rating do you think you'd have in this situation? 

Would you say to the banker, don't worry, I'm cutting out $32/month.  That's about what my family of four spends when we go out to Chick-Fil-A for lunch.  Oooh, the pain and agony. 

What if my interest rate on the $142,710 loan , 2 year variable rate interest only, is currently at 2%? That gives me a interest payment of $2854.  If it went up to a more normal rate of 6%, my interest only payment would triple to $8562, which is 40% of my income.  How am I ever going to get to the point where I can actually begin paying off the actual loan amount?

Would it be wise to continue to give money to charities and go further into debt?

Would it be wise to continue to give money to some friends so that they continue to like me?

Would it be wise to promise my kids Christmas presents just like in the past?

Would it be wise to keep buying more bazookas to defend my home even though the criminals only have pistols?

Would it be cruel to my kids to bind them to this debt? 

Is it fair to bind my grandchildren who aren't even born yet to this debt?

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About the Author:  Tim Maitski has been a full time Realtor since 1999. He has sold several hundreds of homes in areas around metro Atlanta.  Tim started with RE/MAX Greater Atlanta and is now with Atlanta Communities Real Estate Brokerage.


Along with blogging on ActiveRain, he provides one of the best real estate websites in Atlanta at .


His proprietary  "Maitski Line Reports" chart out the absorption rates over the past 14 years in 37 different market areas.  Know when it's a good time to buy or a good time to sell.    


His online Property Tax Calculator allows you to compare property taxes in many counties and cities around the Atlanta area.  He provides the Atlanta MLS Power Search Tool that allows searches of homes using over 35 specific criteria.


Over the years, Tim has optimized his business so that he now can offer a huge 50% commission rebate to his buyers.  The more experience one gets, the easier the job becomes.


Tim also has a "Five Days to Sold" System that uses an intensive marketing blitz to create a showing frenzy that creates urgency and offers.


Tim is always looking to LinkIn with anyone who is interested in building their social network.


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Iran Watson
Georgia Elite Realty - Marietta, GA
Marietta Real Estate Agent - Photographer

Great analogy Tim.  This really puts things into perspective...

Oct 18, 2011 08:28 AM #1
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