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The U.S. government has been running budget deficits for years \u2014 consistently spending more than it collects. Neither the Democratic nor the Republican Party has managed to rein in the red ink, but legendary investor Warren Buffett once offered a surprisingly simple fix.<\/p>\n
“I could end the deficit in five minutes,\u201d Buffett told CNBC\u2019s Becky Quick in a 2011 interview (1). \u201cYou just pass a law that says that any time there’s a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election.\u201d<\/p>\n
Top Picks <\/p>\n
When the clip went viral again, it gained fresh support in high places.<\/p>\n
Senator Mike Lee of Utah reposted the video on X (2), asking the public, \u201cWould you support this amendment?\u201d<\/p>\n
The question sparked a wave of responses, including one from Elon Musk, CEO of Tesla and owner of X, who replied: \u201c100%. This is the way (3).\u201d<\/p>\n
But Lee isn\u2019t just crowdsourcing opinions. He\u2019s trying to turn the idea into a reality.<\/p>\n
\u201cI\u2019m drafting a constitutional amendment to oust every member of Congress whenever inflation exceeds 3%. It\u2019s better to disqualify politicians than for an entire nation to suffer under the yoke of inflation,\u201d he wrote on X (4).<\/p>\n
A bold fix \u2014 but the numbers don\u2019t look good for lawmakers <\/p>\n
While Lee referenced both inflation and deficits, his logic echoes Buffett\u2019s attempt to tie lawmakers\u2019 job security to the nation\u2019s fiscal health.<\/p>\n
Lee has also shared his thoughts about fiscal responsibility on his website, where he writes, \u201cThe current system is set up to spend too much and borrow more. It is a downward spiral with only negative economic consequences (5).\u201d<\/p>\n
Economists have long noted a connection between excessive government spending and inflation. The late Nobel Prize\u2013winning economist Milton Friedman once famously said, \u201cInflation in the United States is made in Washington, and nowhere else (6).\u201d<\/p>\n
But forcing accountability into a law \u2014 especially one that threatens every member of Congress with job loss \u2014 is a heavy proposal.<\/p>\n
Buffett suggested that debt be limited to 3% of GDP. According to the Congressional Budget Office, the federal budget deficit was $1.8 trillion for fiscal year 2025, about 5.9% of GDP (7). That means U.S. debt is nearly double Buffett\u2019s recommended threshold.<\/p>\n
Read More: Robert Kiyosaki warned of a ‘Greater Depression’ \u2014 with millions of Americans going poor. Was he right?<\/a><\/strong><\/p>\n By Buffett\u2019s rule, every sitting member of Congress would be out of a job, and X users were quick to take notice.<\/p>\n \u201cThe only problem is that the people we are suggesting be fired are the ones who get to vote on that. And they’re never going to vote for their own cancellation,\u201d X user Lorrie Ann wrote. \u201cThis is why we need term limits and why they won’t even entertain the idea!\u201d<\/p>\n Even though Musk backs Buffett\u2019s proposal, that\u2019s unlikely to be enough to get this kind of policy across the board. Realistically, the odds are slim that the U.S. undertakes a Buffett-style solution to America\u2019s deficit problem.<\/p>\n The good news is, there are plenty of tactics you can use to improve your own fiscal health \u2014 and in this case, your vote is the only one that counts.<\/p>\n Here are a few ways to avoid running a deficit at home, and how to start building a personal surplus for 2026 and beyond.<\/p>\n Create a steady passive income stream <\/p>\n Trimming expenses is one way to create a surplus \u2014 but boosting income can be more powerful. While asking for a raise doesn\u2019t always lead to results, there are ways to earn money without earning a promotion or clocking in extra hours.<\/p>\n This is where passive income comes in as an ideal income stream, without any added work.<\/p>\n One of the most popular ways to tap into passive income is with real estate.<\/p>\n When you own a rental property, tenants pay you rent each month \u2014 providing a steady stream of cash flow. It\u2019s also a time-tested hedge against inflation, since both property values and rental income tend to rise along with the cost of living.<\/p>\n Become a real estate mogul <\/p>\n Of course, purchasing a property requires significant capital \u2014 and finding the right tenant takes time and effort.<\/p>\n mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties<\/a>, which gives investors monthly rental income, real-time appreciation and tax benefits \u2014 without the need for a hefty down payment or 3 A.M. tenant calls.<\/p>\n Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide<\/a> for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.<\/p>\n Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours<\/a>, with investments typically ranging between $15,000 and $40,000 per property.<\/p>\n Every investment is secured by real assets<\/a>, not dependent on the platform\u2019s viability. Each property is held in a standalone Propco LLC, so investors own the property \u2014 not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.<\/p>\n Getting started is a quick and easy process. You can sign up for an account and then browse available properties<\/a>. Once you verify your information with their team, you can invest like a mogul in just a few clicks.<\/p>\n Invest alongside a $12B AUM real estate owner <\/p>\n Owning a rental property sounds great \u2014 until something goes wrong. One bounced check and your rental income disappears.<\/p>\n But institutional investors don\u2019t face that problem. Their portfolios are diversified across hundreds \u2014 sometimes thousands \u2014 of units.<\/p>\n Now, accredited investors can tap into that same approach through platforms such as Lightstone DIRECT<\/a>, giving you access to institutional-quality multifamily and industrial real estate \u2014 with a minimum investment of $100,000.<\/p>\n Founded in 1986 by David Lichtenstein, Lightstone Group is one of the largest privately held real estate investment firms in the U.S., with more than $12 billion in assets under management.<\/p>\n Over nearly-four decades, their team has delivered strong, risk-adjusted performance across multiple market cycles \u2014 including a 27.5% historical net IRR and a 2.49x historical net equity multiple on realized investments since 2004.<\/p>\n With Lightstone DIRECT, you gain access to that proprietary deal flow<\/a>.<\/p>\n Here\u2019s the kicker: Lightstone invests at least 20% of its own capital in every deal<\/a> \u2014 roughly four times the industry average. With skin in the game, the firm ensures its interests are directly aligned with those of its investors.<\/p>\n Cut waste from your spending <\/p>\n Beyond investing, you need to make sure you know where you\u2019re spending your money, too.<\/p>\n Start by tracking all your expenses for 30 days, then sort them into two categories: necessities \u2014 like rent, groceries, utilities and health care \u2014 and discretionary spending, such as dining out, entertainment, shopping and hobbies.<\/p>\n This breakdown gives you a clear picture of your spending habits and helps identify areas where you can cut back. But trimming waste isn\u2019t just about skipping lattes or takeout.<\/p>\n Even in essential categories, you may be spending more than you need to. The good news? With a bit of research, those costs can often be significantly reduced.<\/p>\n A financial advisor can help crunch the numbers and build a plan that works.<\/p>\n But hiring an advisor can be a lifelong commitment, which might make or break your retirement. That\u2019s why finding reliable advisors is crucial.<\/p>\n That\u2019s where Advisor.com<\/a> can come in. The platform connects you with an expert near you for free.<\/p>\n Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.<\/p>\n Just enter a few details about your finances and goals, and Advisor.com\u2019s AI-powered matching tool will connect you with a qualified expert<\/a> best suited for your needs based on your unique financial goals and preferences.<\/p>\n Finding the right advisor isn\u2019t always easy \u2014 there\u2019s no one-size-fits-all solution. That\u2019s why Advisor.com lets you set up a free initial consultation<\/a> with no obligation to hire to see if they\u2019re the right fit for you.<\/p>\n Once you\u2019ve got the right financial advisor in your corner, the next step is getting a clear picture of where your money\u2019s actually going. That starts with the basics \u2014 budgeting and tracking your spending.<\/p>\n Minimize your monthly costs <\/p>\n For instance, car insurance is a major recurring expense, and many people overpay without realizing it. According to Forbes, the average cost of full-coverage car insurance is $2,149 per year (or $179 per month) (8).<\/p>\n However, rates can vary widely depending on your state, driving history and vehicle type, and you could be paying more than necessary.<\/p>\n By using OfficialCarInsurance.com<\/a>, you can easily compare quotes from multiple insurers, such as Progressive, Allstate and GEICO, to ensure you\u2019re getting the best deal.<\/p>\n In just two minutes, you could find rates as low as $29 per month<\/a>.<\/p>\n Shop around to find the best rate <\/p>\n Home insurance is another major expense where smart shoppers can save big.<\/p>\n With OfficialHomeInsurance<\/a>, comparing home insurance rates is fast and hassle-free. Just enter a few basic details and the platform will instantly sort through over 200 insurers to find you the best deals available in your area.<\/p>\n You\u2019ll be able to review all your offers in one place, and quickly find the coverage you need for the lowest possible cost, saving an average of $482 a year<\/a>.<\/p>\n You May Also Like <\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/strong><\/p>\n Article sources <\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n CNBC (1<\/a>); @BasedMikeLee (2<\/a>), (4<\/a>); @elonmusk (3<\/a>) ; Mike Lee US Senator for Utah (5<\/a>); The Heritage Foundation (6<\/a>); Congressional Budget Office (7<\/a>); Forbes (8<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. The U.S.…\n","protected":false},"author":2,"featured_media":935702,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[261585,51,152913,16918,1700,261584,476,141018,3715,261583,261586,16,15,35854],"class_list":{"0":"post-935701","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-becky-quick","9":"tag-business","10":"tag-congressional-budget-office","11":"tag-dave-ramsey","12":"tag-economy","13":"tag-federal-budget-deficit","14":"tag-inflation","15":"tag-members-of-congress","16":"tag-real-estate","17":"tag-senator-mike-lee","18":"tag-the-republican-party","19":"tag-uk","20":"tag-united-kingdom","21":"tag-warren-buffett"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/116512638137789381","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/935701","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=935701"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/935701\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/935702"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=935701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=935701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=935701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}