Warren Buffett once bragged he could fix the deficit ‘in 5 minutes’ — And Elon Musk agrees. Could it actually work?

This article adheres to strict editorial standards. Some or all links may be monetized.

The U.S. government has been running budget deficits for years — 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.

“I could end the deficit in five minutes,” Buffett told CNBC’s Becky Quick in a 2011 interview (1). “You 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.”

Top Picks

• Gold has pulled back after a record-breaking rally — find out how the sharpest minds are positioning themselves next with GoldCo’s free investor guide

When the clip went viral again, it gained fresh support in high places.

Senator Mike Lee of Utah reposted the video on X (2), asking the public, “Would you support this amendment?”

The question sparked a wave of responses, including one from Elon Musk, CEO of Tesla and owner of X, who replied: “100%. This is the way (3).”

But Lee isn’t just crowdsourcing opinions. He’s trying to turn the idea into a reality.

“I’m drafting a constitutional amendment to oust every member of Congress whenever inflation exceeds 3%. It’s better to disqualify politicians than for an entire nation to suffer under the yoke of inflation,” he wrote on X (4).

A bold fix — but the numbers don’t look good for lawmakers

While Lee referenced both inflation and deficits, his logic echoes Buffett’s attempt to tie lawmakers’ job security to the nation’s fiscal health.

Lee has also shared his thoughts about fiscal responsibility on his website, where he writes, “The current system is set up to spend too much and borrow more. It is a downward spiral with only negative economic consequences (5).”

Economists have long noted a connection between excessive government spending and inflation. The late Nobel Prize–winning economist Milton Friedman once famously said, “Inflation in the United States is made in Washington, and nowhere else (6).”

But forcing accountability into a law — especially one that threatens every member of Congress with job loss — is a heavy proposal.

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’s recommended threshold.

Read More: This $1B private real estate fund is now accessible to non-millionaires. Start investing with just $10

By Buffett’s rule, every sitting member of Congress would be out of a job, and X users were quick to take notice.

“The 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,” X user Lorrie Ann wrote. “This is why we need term limits and why they won’t even entertain the idea!”

Even though Musk backs Buffett’s proposal, that’s 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’s deficit problem.

The good news is, there are plenty of tactics you can use to improve your own fiscal health — and in this case, your vote is the only one that counts.

Here are a few ways to avoid running a deficit at home, and how to start building a personal surplus for 2026 and beyond.

Create a steady passive income stream

Trimming expenses is one way to create a surplus — but boosting income can be more powerful. While asking for a raise doesn’t always lead to results, there are ways to earn money without earning a promotion or clocking in extra hours.

This is where passive income comes in as an ideal income stream, without any added work.

One of the most popular ways to tap into passive income is with real estate.

When you own a rental property, tenants pay you rent each month — providing a steady stream of cash flow. It’s also a time-tested hedge against inflation, since both property values and rental income tend to rise along with the cost of living.

Become a real estate mogul

Of course, purchasing a property requires significant capital — and finding the right tenant takes time and effort.

mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 A.M. tenant calls.

Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.

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, with investments typically ranging between $15,000 and $40,000 per property.

Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.

Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.

Invest alongside a $12B AUM real estate owner

Owning a rental property sounds great — until something goes wrong. One bounced check and your rental income disappears.

But institutional investors don’t face that problem. Their portfolios are diversified across hundreds — sometimes thousands — of units.

Now, accredited investors can tap into that same approach through platforms such as Lightstone DIRECT, giving you access to institutional-quality multifamily and industrial real estate — with a minimum investment of $100,000.

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.

Over nearly-four decades, their team has delivered strong, risk-adjusted performance across multiple market cycles — including a 27.5% historical net IRR and a 2.49x historical net equity multiple on realized investments since 2004.

With Lightstone DIRECT, you gain access to that proprietary deal flow.

Here’s the kicker: Lightstone invests at least 20% of its own capital in every deal — roughly four times the industry average. With skin in the game, the firm ensures its interests are directly aligned with those of its investors.

Cut waste from your spending

Beyond investing, you need to make sure you know where you’re spending your money, too.

Start by tracking all your expenses for 30 days, then sort them into two categories: necessities — like rent, groceries, utilities and health care — and discretionary spending, such as dining out, entertainment, shopping and hobbies.

This breakdown gives you a clear picture of your spending habits and helps identify areas where you can cut back. But trimming waste isn’t just about skipping lattes or takeout.

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.

A financial advisor can help crunch the numbers and build a plan that works.

But hiring an advisor can be a lifelong commitment, which might make or break your retirement. That’s why finding reliable advisors is crucial.

That’s where Advisor.com can come in. The platform connects you with an expert near you for free.

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.

Just enter a few details about your finances and goals, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert best suited for your needs based on your unique financial goals and preferences.

Finding the right advisor isn’t always easy — there’s no one-size-fits-all solution. That’s why Advisor.com lets you set up a free initial consultation with no obligation to hire to see if they’re the right fit for you.

Once you’ve got the right financial advisor in your corner, the next step is getting a clear picture of where your money’s actually going. That starts with the basics — budgeting and tracking your spending.

Minimize your monthly costs

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).

However, rates can vary widely depending on your state, driving history and vehicle type, and you could be paying more than necessary.

By using OfficialCarInsurance.com, you can easily compare quotes from multiple insurers, such as Progressive, Allstate and GEICO, to ensure you’re getting the best deal.

In just two minutes, you could find rates as low as $29 per month.

Shop around to find the best rate

Home insurance is another major expense where smart shoppers can save big.

With OfficialHomeInsurance, 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.

You’ll 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.

You May Also Like

Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CNBC (1); @BasedMikeLee (2), (4); @elonmusk (3) ; Mike Lee US Senator for Utah (5); The Heritage Foundation (6); Congressional Budget Office (7); Forbes (8)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.