It is helpful to explain the word “Financial Margin” – as I speak of it anyway.
I define Financial Margin as:
- Money that has been saved up and allows one to encounter financial obstacles or opportunities without derailing one’s entire finances and life.
I also define Financial Margin as:
- Money that is intentionally set aside in each month’s budget to be placed into savings for emergencies, known upcoming non-monthly expenses, and to fund dreams.
Or more directly, Financial Margin can be defined as:
- The ability to breathe and not panic when the car breaks down.
When you have SAVINGS set aside and are intentionally putting more to the side every month, it allows you live life on a mission without EVER being distracted by a negative financial event.
How would YOU define Financial Margin?