I am writing this series partly to help people win with their own money, but also as a reminder to myself that money pitfalls abound and that we are ALL susceptible to falling into making a poor financial decision.
Part Four Living with no margin
If you have financial margin, you already know what I’m talking about it. If you have NEVER established financial margin, YOU HAVE NO IDEA what this means. I had experienced my IHHE Moment on December 2, 2002. Living with no margin means that you are constantly faced with surprise and unexpected expenses that clobber your finances. These surprise and unexpected expenses will still show up when you have margin, but you already have the money saved so it is just a matter of paying for it with no worries!
Because my family had no financial margin, we made less than stellar purchasing decisions – usually paying for the surprise expense with a credit card. It felt like we were trapped into a cycle of broke with no margin.
My family first experienced financial margin beginning in February 2003. We were able to put our tax refund into savings that month. When that happened, I was literally able to breathe in a way I have never experienced before! I highly recommend it!
Believe me when I tell you that life with margin is completely different from a life with no margin. You CAN NOT PROSPER if you do not have margin. It is IMPOSSIBLE.
PROBLEM: Living with no margin
SOLUTIONS: 1) Budgeting each month 2) Prioritizing savings in the budget 3) Holding each other accountable to not using the savings for random wants