We’ve discussed saving, investing and getting up and doing what you love. Joseph Sangl, a financial guru at my church, has been putting together some rules to help readers manage their money. Once again, this rule focuses on saving to improve your life.
Rule #4: You must have margin
There are many, many people who don’t have any savings. Joseph discusses how he lived in that situation and didn’t have any money for emergencies. He says he never really realized how important it was until he finally had some money tucked away.
A good savings account provides margin. This helps you think seriously about the future. It can aid you in choosing a career path, business decisions or moving. You don’t want to have to say “That will cost money. Money I don’t have.”
Joseph says “financial margin allows you to absorb unexpected financial events” like problems with your car or washing machine etc. It helps to keep you from incurring new debt. You can also use it to take advantage of some bargains.
I’ve realized that not having to worry so much about money really improves your well being. My husband and I finally sold our house in Florida on Friday after being on the market for two years. We now can boost our savings, have a little extra money for some fun and our stress level is beginning to decrease.