Living Margin Leverage

How much cash flow do you need to be financially secure, independent, or free?

For most people, your number might feel unusually large. But don’t get discouraged – by saving a small percentage of your cash flow, you’ll start to create a living margin that will see you thriving for years to come.

If you harness the power of compounding – making your cash flow work for you – you’ll see incredible accumulation over the long term. It can be hard to see it, but with your number in mind, you’re ready to take the “moon shot.”

Managing your cash flow is crucial for putting your plan in place, but many of us want to ignore the numbers. Or just put it off until later. But honestly, it doesn’t matter if you earn per year, you can always save a little to accumulate a living margin. It truly becomes infinite cash flow because if managed carefully, you’ll have safe, secure access to resources in a risk-protected environment.

There are two phases of savings: accumulation, where you’re putting cash flow away, so it can grow, and de-accumulation, where you withdraw cash flow from your savings.

The trick is to put a percentage of your cash flow somewhere that it’ll begin to work for you. Put this allocation of cash flow into savings no matter what happens and you’re going to slowly start building your financial future.

The best way to set your cash flow into motion is to automate your savings. And the key to success is to not see it in the first place because you’ll spend what you have. Instead, save now and you’ll be able to reap the rewards later.

Figuring out what you want from life and setting up your financial (savings) goals to meet that desire will help you create a clear path and build a plan for financial freedom that works.

The “experts” say you should plan to allocate at least 10% of your cash flow towards your financial goals, although 20% is what the living margin framework suggests, as part of your first fruits giving. Remember, the earlier you start, the bigger your margin grows.

Not all savings are created equal, so deciding where to put the cash flow you save is just as important as the percentage that you’re saving. By wisely allocating a portion of your cash flow, you’ll be able to grow your savings and get closer to financial freedom. Many people have a lot of money, but they spend their lives watching their bank account and miss out on a greater quality of life.

If you are like most people who are planning their lives, you want to be able to afford your child’s college tuition, care for your aging parents, and retire in comfort.

Most of all, you want to feel secure and confident that the decisions you are making are well-informed and educated when it comes to planning your financial future. There is a real solution for the day and you can participate.

Using leverage is a common practice for most people. You may use leverage to finance a home, buy investment property, or start a business. So, it would make sense to leverage your cash flow to enhance your retirement benefits.

The decision to use leverage is driven by the idea that the money you contribute will grow at a higher rate of return than the cost of borrowing. And, at the very least, you get to enjoy the benefits of these purchases today.

If you’re concerned about your financial freedom and don’t think that you’re saving enough, you will realize how the living margin strategy is a better way to protect your future. The ultimate result is more financial comfort than mere savings and traditional strategies alone.

A leveraged living margin strategy allows you to maintain your current lifestyle as it combines living benefits with retirement savings. Historically, leverage has been a financial strategy used exclusively by the ultra-wealthy, because it offers you more protection and the potential to earn more for retirement than could be obtained without leverage.

So, if you practice the principles of leverage, you’ll create your self-directed strategy and ultimately become self-insured. Managing your cash flow will enable you to enjoy more, sooner and for a longer period.