The budget deficit is what we expect from Uncle Sam. After all, without years of overspending, the federal government will not bear trillions of dollars in debt. However, the latest monthly Treasury statement brings rare (welcome) surprises.
In April 2025, the U.S. government collected $850.2 billion in revenue while spending $591.8 billion, with a monthly budget surplus of $258.4 billion.
This is not only any surplus – it is the first monthly surplus for fiscal year 2025 (starting in October 2024) and the second largest monthly surplus in U.S. history, second only to the $308.2 billion surplus in April 2022.
Does this mean that President Trump’s plan is working?
According to the U.S. Treasury Department, surplus is driven by “large personal tax deposits”, with April the final payment date for the previous year’s tax and a quarterly estimated tax for many individuals and businesses.
Personal income tax alone brought in $537 billion, the biggest contributor to government revenue in April so far. Social insurance and retirement income earned $184 billion, while corporate income tax increased $94 billion.
Tariffs – a reflection of Trump's tariffs – generated $15.6 billion in April, more than double the $6.3 billion collected the same month last year. Nevertheless, tariff revenues remain moderate compared to other major contributors.
In terms of spending, the biggest spending this month is $132 billion in Social Security, followed by $89 billion in net interest, $82 billion in Medicare, $76 billion in health and $70 billion in defense.
Despite a large surplus, a strong month is not enough to reverse the broader fiscal trend. From October 1 to April 30, the U.S. government brought in $3.11 trillion in revenue but spent $4.159 trillion, resulting in a $1.049 trillion deficit for the fiscal year so far.
Therefore, it is no surprise that state debt continues to soar. As of this writing, the total outstanding debt of the U.S. government has reached an astonishing $36.212 trillion.
takeout? To run a surplus, you must earn more than your expenses. It could be a daunting task for government juggling countless plans – but for individuals it is a surprisingly simple (and achievable) strategy.
Here are a few ways to improve your own financial health in 2025 and beyond.
If you want to improve your financial situation, the first step is to understand where your money goes each month. Track all expenses over 30 days and then divide them into two categories: essentials such as rent, groceries, utilities and health care – and discretionary expenses such as dining out, entertainment, shopping and hobbies.
This breakdown allows you to have a clear understanding of your spending habits and helps identify areas that can be reduced. But pruning waste is more than just skipping lattes or takeaways. Even in basic categories such as auto insurance or banking, you may spend more than you need. Good news? With some research, these costs can usually be greatly reduced.
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Auto insurance is a major regular fee, and many people pay without realizing it. According to Forbes, the national auto insurance cost in 2024 is $2,150 per year (or $179 per month).
However, rates can vary greatly depending on your status, drive history, and vehicle type, and you may pay more than necessary.
More and more Americans are also facing higher car payments, so it is important to control the costs associated with the vehicle.
Instead of sticking with the same provider, you can try to spend a few minutes comparing quotes from multiple insurance companies to ensure you get the best deal.
Over time, bank fees can quietly emptie your financial situation. Even comedian Bill Burr once complained to Joe Rogan about his bank taking $28 a month from his account for no reason.
In fact, many traditional banks charge a fee of $5 to $35 per month for maintenance, overdraft fees and other hidden fees.
On the other hand, online banks often offer lower fees (or none at all) because their overhead costs are the same as those of physical institutions.
Many online banks also offer high interest checks and savings accounts, allowing you to earn more idle cash while avoiding expensive fees.
Cutting expenses is a way to create surplus – but increasing revenue is just as powerful. And, while asking for a raise, it doesn’t always bring results, but there are many ways to make money without making money in the extra time. This is the source of passive income: the currency flows continuously and the effort is minimal every day.
One of the most popular passive income strategies? real estate.
When you own a rental property, the tenant pays you rent every month – providing a stable cash flow. This is also a hedge against time tests against inflation, as both property value and rental income rise with the cost of living.
That said, becoming a landlord is not always easy. You will be responsible for finding and screening tenants, collecting rents, and handling maintenance and repair requests (from your own pocket) – this is assuming you can save enough down payment and get a mortgage to buy the property first.
Good news? Today, you don’t need to buy real estate directly to get the benefits of real estate investment. For example, crowdfunding platforms allow day-to-day investors to own shares in a rental property without a large amount of downward payments or management headaches traditionally associated with real estate ownership.
Additionally, Real Estate Investment Trusts (REITS) offer another avenue for those who wish to obtain this asset class.
This article provides information only and should not be construed as advice. It is without any warranty of any kind.
