SERIES: Fundamental Rules Of Money Management IV

Welcome to a new series on the wildly popular JosephSangl.com! In this series, I will be sharing what I believe are Fundamental Rules Of Money Management. I look forward to reading your thoughts on this topic!

Rule #4 You must have margin.

I have lived with no money in the savings account.   When I was in that situation, I was very aware that it was not the best situation.   It was clear that $0 in savings left little room for financial emergencies to occur, but I was unaware of the full implications of zero saving until I finally had a healthy savings account.

A healthy savings account provids margin.   It allows you to think beyond today and tomorrow.   Margin allows you to consider a business decision, career path, or even moving without seizing up due to making this statement to yourself, “That will cost money.   Money that I do not have.”   Financial margin allows you to absorb unexpected financial events (like refrigerator, hot water heater, or car failure) – without incurring new debt.

Margin also allows you to take advantage of unexpected financial bargains.

To me, financial margin equals to less stress, peace, a calm wife, and freedom.

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