How To Create Margin Step 1


Do you have financial margin in your family’s finances?  Are you currently following a plan to create margin in your life?  Creating financial margin is one of the wisest decisions any family or individual can make.  Beth and I did not have any margin when we started off married life, but quickly began following a plan to create financial margin and it has changed everything for our day to day lives.  Even if you are single without a family this is still one of the most important things you can do.  It has been my experience creating financial margin is incredibly simple to do.  It is not easy, but it is simple.  It is also extremely worth it.

There are really only two steps to creating financial margin

Step one – Reduce monthly expenses and pay down debt

Step two – Create additional streams of income

I think the first one is obvious.  Most of us spend way too much on many things that are nice to have, but are not truly necessary.  Cutting additional expenses is a tough for so many of us because we live in a consumerism culture where we have been sold the lie, “We deserve everything.”   What if we stopped believing we deserve 200 tv channels, a DVR, 60” TV, luxurious vacations, and the ability to eat out all of the time?  What if we chose to believe our families deserved to get debt free?  Have you ever taken the time to write a monthly budget?  If we understand the Slight Edge then we understand,

Have you committed to the goal of debt freedom and creating margin?  Do you understand the urgency and importance of accomplishing this goal as fast as possible?  I have never met anyone who wished they took longer to get out of debt, but I have met countless families who are frustrated and fed up with their debt they are stuck in.  What are some things you currently spend money on which are nice to have, but are preventing you from getting yourself out of debt?

It has been my observation far too many people are drowning in debt and know they are, but they are unwilling to DO SOMETHING to change their circumstances.


My simple question for you is are your truly committed to getting your family out of debt?  When Beth and I truly committed to getting out of debt we took a hard look at ourselves and asked tough questions.  We completely canceled cable all together.  We stopped going to movies and other outside entertainment.  We stayed home a lot or looked for free things we could do for dates.  We stopped eating out.  We did not go on a trip for our anniversary for three years.  We drove our cars way past a time we wanted to because they still ran and we were committed to climbing out of debt.  Are you committed to debt freedom?  What if you made the hard and necessary changes and actually got your family out of debt?

Eliminating unnecessary expenses to accelerate debt reduction is a powerful part of creating margin.  I also strongly encourage you to follow a proven debt reduction plan like Dave Ramsey’s Financial Peace or Ron Reynolds’ Debt Buster.  Those are proven plans with millions of Americans who have achieved debt freedom with their teachings.

If you have begun step one you are well on your way to creating margin.  Climbing out of debt is not easy, but it is worth it.  In my next post I will share how and why to create additional streams of income.

Question: What is one regular expense you are committed to eliminating so you can accelerate your debt reduction?  Comment below.

Please note: I reserve the right to delete comments that are offensive or off-topic.

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