Under Our Noses
Do you ever feel like you don't have much, if any, financial margin in your month-to-month life? I've felt that way at times, and I regularly meet people who believe the same.
I could tell countless stories about this idea, but instead, I'll share one specific encounter I recently had that perfectly sums up today's point. Here's the context:
Husband and wife, both late 30s.
Three young children.
Monthly take-home income of around $9,000.
They have a mortgage and one medium-sized car loan.
Constant frustration and tension in the marriage since there isn't margin to do the things they really care about.
We spent about an hour going through their budget. Sure enough, there really isn't any margin once everything is accounted for. Or is there?
What I often find is that even when people don't believe they have margin, they actually do have margin right under their noses. It's sneaky. Category by category, I whiteboarded all the components of margin I saw in their financial life.
$800 worth of dining out each month.
$175 worth of streaming services each month.
$500 worth of combined personal spending each month.
$500-$750 worth of travel each month.
So while finances feel tight and there doesn't appear to be margin, they DO have margin. However, they've just chosen (whether consciously or subconsciously) to use that margin to fill the above-referenced categories. In total, they had approximately $2,200/month of actual margin.
My challenge to them was to look in the mirror and sincerely ask themselves what they wanted to do with that margin. It's okay to do what they are already doing, but it's not okay to whine about it and feel like a victim. If they are a victim of anything, it's of their own choices. Therefore, let's make sure we're making rock-solid choices.
I didn't share this with them to guilt them or embarrass them. Rather, I wanted them to see just how truly blessed they are. Second, I wanted them to embrace this opportunity to add the most value to their lives.
After multiple conversations, they reoriented where some of their monthly cashflow was going. This month, they don't feel nearly as stressed. They don't feel like victims. They don't feel like they are on the outside of their dreams, looking in. They recognize the margin they do have, and they are embracing the opportunity to harness it well. Beautiful!
It's a fantastic exercise. I encourage you to try it for yourself!
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