What can a householder learn from how the Federal Government manages its Budget?

“Oooh, ooh! Me, sir, me! I know this answer! Please sir!”

“Ye-e-es, Debt Man,” the teacher says hesitantly. (He always hestitates when I raise my hand.)

“That you shouldn’t get cornered into making promises that, deep in your heart, you really don’t want to keep?”

Prime Minister Julia Gillard promised at the last election that this budget would be in surplus. Then she handed the hospital pass to Treasurer Wayne Swan, who has to deliver tomorrow night.

Neither wants to do it. Making deep cutbacks during tough economic times just ain’t the Labor way. The only certainty tomorrow night is Wayne will upset countless tens of thousands.

Gen Xers have budgets as tough to balance as anyone. But while Xers have generally rising incomes (says Census data), it’s also when expenses are highest, with monster mortgages and massive costs for the midgets.

So, assuming Wayne can deliver, the lesson to learn is how to live within our means. The main difference? Wayne can raise taxes. We can’t, without resorting to Robin Hood antics.

Delivering regular budget surpluses in a household can be really tough. But it’s absolutely critical. That’s how you develop savings, pay down the home loan faster, or afford the school fees without imploding on debt.

Sure, you want to give the kids things. And you want to reward yourselves. But some years (like this year for Julia and Wayne) a “budget surplus” is more important for the message it will send.

“We can keep a promise to live within our means.” It’s a promise Xers need to make to themselves EVERY year.

Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and principal adviser with Castellan Financial Consulting.