Archive for 2011
Top 5 Ways To Gain Financial Margin – Margin Defined
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?
Top 5 Ways To Gain Financial Margin
Lots of people are looking for financial margin these days. They are SICK of living paycheck-to-paycheck. They want to be able to have at least a little fun during the month. There are expenses that have been put off way too long – things like home and car repairs.
I want to help you have that margin! Life with margin allows you to live life on a mission.
Top 5 Ways To Gain Financial Margin
- Reduce interest rates on existing debt
- Eliminate debt
- Increase income – through pay increase, overtime, or 2nd job
- Sell possessions – especially those that have ongoing expenses
- Start a successful business
Over the next several blog posts, we will be discussing each of these items in more detail.
How much FINANCIAL MARGIN would you like to have 12 months from now? Share it with us!
What’s Next After Debt Freedom
I meet a lot of people these days who are in the midst of their pursuit of Debt Freedom. I call it a “Debt Freedom March.”
They have used a tool like our Debt Freedom Date Calculator to calculate their Debt Freedom Date, and they have realized just how much of their money is going to a bank or lender. For the average family with non-house debt, somewhere between $500 and $1,250 per month is being paid in monthly payments. If you include the house payment, that average amount is between $1,250 and $2,000 or more per month.
For those who remain focused and diligent, debt freedom is achieved, and it is incredible!
Then the inevitable question shows up – “What’s next?”
If you are one of those who is asking this question, here are a few things to consider using the newly-released money for:
- Pursue a dream
- Give more away to causes you really believe in
- Build a larger emergency fund
- Invest money into a dream
- Invest money into someone else’s dream
- Reward yourself with a purchase of something you’ve always wanted
What other things would you recommend using this money for?
Teaching Young People About Money
I taught over 500 young people about money at West Ridge Church in Dallas, GA recently, and it was INCREDIBLE! I was teaching from my book, What Everyone Should Know About Money Before They Enter The Real World.
Here is what stood out to me:
- They were very energetic – but also paid attention very well
- The compound interest example captured ALL of their attention – even the 6th and 7th graders!
- Young people dream more than adults
- Their dreams are much less impacted by the potential financial cost
- They are just more passionate about life – period!
- Most of them are more aware of money and money issues than the young people I was teaching five years ago. I think the global recession has caused this generation to truly pay attention to money.
- They clearly know that it is EZ™ to win with money!
FIRED UP!
Free Credit Report
In this day and age of identity theft, it is vitally important you monitor your credit report.
You can get a copy of your credit report FREE (not a misleading statement like so many of those TV commercials you see that say “offer implies enrollment in a fee-based credit monitoring service). The for-real-free credit report is available at: AnnualCreditReport.com
According to their website …
AnnualCreditReport.com is a centralized service for consumers to request free annual credit reports. It was created by the three nationwide consumer credit reporting companies – Equifax, Experian and TransUnion.
AnnualCreditReport.com provides consumers with the secure means to request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies in accordance with the Fair and Accurate Credit Transactions Act (FACT Act).
Be sure to download your credit report from each of the big three credit reporting companies – Equifax, Experian, and TransUnion. A lot of the information will be repetitive, but it is important to check out all three.