Live within a Financial margin

Live within your limits

Our culture encourages us to push the limits physically, emotionally and financially. The demands of a typical lifestyle can challenge even the best salary. But what do you do when the pace gets too hectic and the money gets too tight? When the fear of missing out lures you into an unsustainable lifestyle?

Everyone wants financial margin – the latitude to spend money without worrying about making ends meet. But how do we get there? Margin planning is an easy three-step process that looks like this:

1. Identify your annual “Available Income”:

Annual income (minus)

  • Taxes
  • Debt payments
  • Fixed obligations

= Available Income

2. Determine your “Disposable Income” (includes a savings goal)

Available Income (minus)

  • Taxes
  • Debt payments
  • Fixed obligations

= Disposable Income (divide by 12 to get Monthly Consumable Income)

3. Develop a plan

  • Taxes
  • Debt payments
  • Fixed obligations
Credit

Let’s talk about budgeting

Let’s talk about budgeting, more so how to budget during a recession. I know what you’re thinking: budgeting and recession are two dirty words we don’t want to think about, but now more than ever we need to face them.

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