Archive for June 2015

Well we’re getting ready to say goodbye to spring and hello to summertime! That means heat, no school, and lots of free time. In this tight economic time, a lot of people are getting very creative about how they spend their time and money. Let’s face it, we all want to have fun – even more so when the money is tight and times are stressful! Here are some ways that I have seen people having fun and it is costing them NOTHING (or next to it).

• Start a blog
• Listen to a podcast
• Play a board game, card game or any kind of game
• Check out the community calendar
• Library visits – just to peruse the books, magazines and check out free movies
• Bake a new dish using stuff that is already in the pantry and freezer
• Clean up the yard
• Learn a new skill (maybe how to change your car’s oil)
• Start a DIY project
• Start a new workout routine
• Attack one room in the house and reorganize it
• Volunteer at a local community center, food pantry, or animal shelter
• Take the train downtown to people watch – I LOVE doing this in Chicago!
• Catch up on some old shows with Hulu.com
• Take time to pet and play with the dog and cat
• Go on a hike or a walk
• Pick-up basketball games at the local park

These are a few ideas. What are your favorite things to do that cost little or no money?

Margin is an alternative way to communicate “space.” Remember when the English teacher ruined your life by announcing that you must hand write a two page composition? She would say, “Be sure to avoid writing in the “margins.” In other words, it was important to maintain appropriate spacing. The same is true for your finances. Financial margin creates space in your life. During this series, I’ll be focusing on the real and emotional effects of living WITH and WITHOUT financial margin. Ready?

PART ONE – LESS STRESS

PART TWO – FREEDOM

PART THREE – IMPROVED RELATIONSHIPS

PART FOUR – FILL UP THE TANK
There are so many benefits to having financial margin, but one of the greatest is the ability to just “fill up the tank.” Let me explain.

When there is no financial margin, it may not be possible to drive to the gas pump and fill up the gas tank. Lack of margin means that one has to put $16 in one time and $37 the next. Whatever money is available goes into the gas tank. This can be very costly – especially in time costs!

When you are not filling up the tank every time, you lose time because:

• You have to fill up more often
• You have to waste time figuring out how much can be spent this time

For many people, it also costs more money because more visits to the gas station equal more trips into the convenience store to buy super-overpriced soda and snacks!

When you have margin, you can just “fill up the tank.”

Here are other ways this applies to having financial margin:

• You can buy the proven name-brand appliance instead of the el-cheapo model
• You are in the position of power so you are not subject to obtaining financing and buying the junk they are trying to sell you
• Pawning, short-term financing, and other highly expensive ways to obtain money become completely unnecessary

To me, the sacrifices to obtain financial margin are worth it just to “fill up the tank” every time!

Looking for more information on creating financial margin? Check out this resource (HERE).

Margin is an alternative way to communicate “space.” Remember when the English teacher ruined your life by announcing that you must hand write a two page composition? She would say, “Be sure to avoid writing in the “margins.” In other words, it was important to maintain appropriate spacing. The same is true for your finances. Financial margin creates space in your life. During this series, I’ll be focusing on the real and emotional effects of living WITH and WITHOUT financial margin. Ready?

PART ONE – LESS STRESS

PART TWO – FREEDOM

PART THREE – IMPROVED RELATIONSHIPS
Individuals who are against the wall financially for extended periods of time can many times hurt people in ways that they never would do if they had financial margin. I’ve seen business owners (with no margin) who completely lose their minds on a customer who owed them $1,000 even though they are late on $10,000 of bills to their own suppliers. They are agitated, angry, and threatening. But a third party could easily say that the business owner is completely out of line. What is causing this issue? No financial margin!

I’ve seen countless relationships injured or destroyed because of no financial margin – families, friendships, business relationships, working relationships. My bet is that you’ve seen it too or maybe you’ve experienced it! It is incredibly hurtful and can cause enormous stress and heartache.

Here’s a question to ask yourself:

What would these situations look like if each person had financial margin?

Wouldn’t there be a lot less borrowing? Wouldn’t there be less heartache, pain, and agony?

Make the greatest investment into your peace and state of mind – establish financial margin!

Margin is an alternative way to communicate “space.” Remember when the English teacher ruined your life by announcing that you must hand write a two page composition? She would say, “Be sure to avoid writing in the “margins.” In other words, it was important to maintain appropriate spacing. The same is true for your finances. Financial margin creates space in your life. During this series, I’ll be focusing on the real and emotional effects of living WITH and WITHOUT financial margin. Ready?

PART ONE – LESS STRESS

PART TWO – FREEDOM 
When financial margin is established, it provides a sense of freedom! I know that when we finally established some beginner margin in 2003, it was like scales fell from our eyes. We saw life in an entirely new light! Instead of wasting tons of energy determining how each bill was going to be paid (anyone who has lived paycheck-to-paycheck KNOWS the energy this takes!), we began looking forward. It allowed us to start asking new questions like:

• How much should we save each month for our children’s college?
• Any question that starts with “I wonder what would happen if … ?”
• Who can we bless this month?
• How can we use our gifts and talents in the most impactful way?

When we established margin, I discovered the freedom of knowing that I could pursue a dream! It did not matter as much if I really did pursue the dream – what mattered most was the fact that I could pursue the dream! I’m not sure this really makes much sense, but knowing that fact was incredible. Let me share a few examples to better explain this. I am entrepreneurial by nature. This means I love starting things. When I was broke and living paycheck-to-paycheck, the option to start a business or new venture was out of the question. Financial margin gave me the freedom to consider the options without being overcome by the fear of living in a cardboard box.

Here’s another example. When I took the leap of faith to go on staff at NewSpring Church, a church Jenn and I were a part of starting and LOVE being a part of, I took a massive pay cut. Jenn was able to make the decision to work or continue to be a stay-at-home mother without really having to worry about the financial aspects. This was only possible because we had financial margin.   How many people can take a 50% pay cut and still have this option available to them? Not many, but I will tell you with 100-percent confidence that those who have established financial margin CAN – and that FREEDOM to choose is incredible!

If you have no financial margin, make a decision to start building it today! If you do have financial margin, celebrate the fact that you have made the necessary choices to establish it and then use that freedom to pursue a dream!

Margin is an alternative way to communicate “space.” Remember when the English teacher ruined your life by announcing that you must hand write a two page composition? She would say, “Be sure to avoid writing in the “margins.” In other words, it was important to maintain appropriate spacing. The same is true for your finances. Financial margin creates space in your life. During this series, I’ll be focusing on the real and emotional effects of living WITH and WITHOUT financial margin. Ready?

PART ONE – LESS STRESS 
I still remember the day that my family first established financial margin. It was in February 2003 and we had just received our tax refund. Instead of immediately using this money, we put it into our savings account. This meant that we were not able to attack debt with this money, but our eyes had been opened to the need of establishing financial margin. Depositing the check into our savings account was incredible, but it was the emotional feeling that surprised me! We were able to breathe in a way we had never breathed before. I’m talking about literally being able to breathe differently. With that one key decision, we eliminated a load of stress that we did not even realize was there.

Gone were the days of fearing the question, “What will happen next?” Over were the days of stating, “How in the world will we pay for THAT?” Instead of dreading the clunking sound coming out of the dryer, we could simply say, “Appliances break. Let’s purchase a new one – with our financial margin money.”

STRESS! It is the #1 reason why most people want to meet with a financial coach. The stress of living with no financial margin can lead to a lot of effects:

• Fear
• Depression
• Feelings of dread
• Marital discord (or even divorce)
• Anger
• Combativeness
• Snappy responses
• Impatience
• Frustration
• Feelings of scarcity/lack
• Craving
• Unfulfilled

Having money is certainly not the answer to all of life’s issues, but the establishment of some financial margin certainly goes a long way toward easing many of the struggles of daily life! I definitely know that is true in my own life.

With all of the negative consequences related to living life with no margin, is it not worth the effort it will take to establish some financial margin? I recommend starting with at least one month’s of expenses. Saving one month of expenses allows you to manage your finances with a monthly budget, even if you are paid at some other frequency. It won’t happen overnight, but it can happen faster than you ever thought!