The Wealth is in the Margin

No margin, no wealth.

A simple formula that can change your financial life is this: income minus expenses equals margin.

Most people have little to no margin in their budget. As a result, they do not have money left over to save or invest. The wealth is in the margin.

Living paycheck to paycheck keeps a person in survival mode, and survival mode does not allow someone to think long term. For example, Father Time is undefeated. You will not be able to work forever. So what are you going to live on when you retire?

Additionally, many people retire with money saved in their bank account, but that money is not actively building wealth for them. Warren Buffett said it best: “If you do not find a way to make money while you sleep, you will work until you die.”

The goal is simple. Your money should outlive you, not the other way around.

The powerful thing about investing in the stock market is that even if you stop contributing money to your investment account, the money already invested will continue to grow. If you plant a dollar and that dollar produces a money tree that produces money seeds, sign me up for that process.

Ninety nine percent of the clients I coach are actively paying off debt. Why? Because they understand they must increase their margin in order to save an emergency fund and invest.

I teach my clients that every time you pay off a dollar of debt, you give yourself a raise.

When my wife and I paid off $32,000 of debt, our margin dramatically increased. When our margin increased, our financial options increased as well. When you have options, you have freedom.

Today my wife and I own our time. We started two businesses debt free, all because we increased our margin.

So what is next?

Start with three simple steps. Get a written budget. Create a debt elimination plan. Watch your margin grow.

Once your margin increases, save three to six months of emergency expenses and begin investing in the stock market. Now you have a cushion between you and life in case of a financial emergency, and your money is working for you.

Now go increase those margins!

Interested in one on one financial coaching? Book a free clarity call.

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