There's a big different between a government shutdown and hitting the limit on the debt ceiling limit. And let's just say that one of them is way worse.

Granted, they're both horrible.  They both mean the folks in Washington D.C. are over-spending and basically can't agree on much.

But that doesn't mean you can't educate yourself and protect your assets in the process.

Because the threats of both happening show up every few months, it's high-time you understand how it all affects you and your wallet.

The biggest difference between a government shutdown and hitting the debt ceiling is in the cuts to discretionary versus mandatory spending. So watch our video to understand exactly what that means.

 

For more 60-Second Tips, subscribe to our YouTube Channel here:

 

Watch More with TheStreet:

Editors' Pick: Originally published January 18, 2018. 

More from How-to

Retirement Advice - It's Actually Better to Work Longer Than To Save More

Retirement Advice - It's Actually Better to Work Longer Than To Save More

The Alternative Minimum Tax and What to Know for 2019

The Alternative Minimum Tax and What to Know for 2019

What Is Diffusion of Innovation and Why Is It Important in 2019?

What Is Diffusion of Innovation and Why Is It Important in 2019?

How to Lease a Car in 7 Steps and When Leasing Is a Good Idea

How to Lease a Car in 7 Steps and When Leasing Is a Good Idea

How to Invest in Cannabis - In Its Many Forms

How to Invest in Cannabis - In Its Many Forms