Living Margin Intro

Want to spend ten minutes doing one thing for your finances that will have a massive impact on your ability to spend less, save more, and reach your goals faster? If you answered yes, it’s time to create a living margin.

Your biggest wealth-building tool is your cash flow, and the best way to harness its power is to create a “living margin.” If you have a margin in your cash flow, you will be able to control your finances and achieve lasting freedom.

The principle of living margin has been used for centuries to manage wealth and prosperity. If you live without margins, all it takes is one disaster to throw everything away. Whether in business or your personal life, you simply cannot live without margin.

Using agriculture as an illustration, you will create a margin if you harvest your field but not the corners. The corners of the field are then to be given away. If you drop a circle into a square, touching the middle of each side of the square with the circle's perimeter, the circle takes up 79% of the square, giving you a 21% margin.

So, visualize your life as a square. When you reap the harvest of your land, don’t reap to the edges of the field or gather the remainder of the harvest. In other words, the corners are for giving and receiving; they’re not for you. You are to live from what’s within the circle.

When you live with enough margin, you can handle life’s surprises without anxiety or the need to borrow money. It may not seem like much, but this aspect of your finances is so important. In agriculture, this principle is called first fruits, a “gift” or “offering.”

The living margin framework will teach you the secrets of how financial experts are beating out the day-to-day financial struggle to create margins by adopting these new but ancient principles. For budgeting purposes, you will learn a 20/60/20 formula to manage your cash flow and create a margin in your financial life.