When There’s No Margin at All
A couple of weeks ago I talked about living under your means. That’s what I call creating margin. The breathing room in your finances. It’s what gives you choices: a little space to save, invest, or pay off debt if that’s where you are right now. It’s where the power lies.
But in my years of coaching, I’ve noticed how very few people actually have that margin. For many, it feels almost impossible.
It’s not just a low-income issue
There’s no single number that studies agree on, depending on how you define it, but the data make things clear. Somewhere between a third and two-thirds of Americans live “paycheck to paycheck.” It’s common, and it’s getting worse.
Even people earning six figures say there’s nothing left at the end of the month. The economy has made things harder, yes. But some of the problem comes from choices that have quietly become non-negotiable. What I call baked-in needs.
Maybe it’s the car payment that feels so heavy. Maybe it’s the house that stretched your budget from day one. For lots of households, “needs” add up to 80–90% (or more) of income (when 50–60% is healthier). That leaves no margin (because we all know there are things we will spend on, outside of needs). And changes aren’t easy to make.
Opportunity hides in plain sight
Still, once we look closely, opportunity starts to show up. Sometimes what we call a “need” isn’t one after all. And sometimes the biggest progress comes from one big (and courageous) decision that changes everything. I have client stories, and they’re awesome! Questions like What if? What if we went down to one car? What if we downsized? What if we redefined what enough looks like?
When “help” hurts
But when we don’t make those changes, someone else will gladly offer a “solution.” It’s terrible, really. There are plenty of companies waiting to “help” with quick emergency loans. A few hundred dollars to get through the month or cover an unexpected bill. But those loans come with high fees and astronomical interest that can climb into the hundreds of percent. I once worked with a client who had a few at over 300%. That’s not help. That’s entrapment.
When there’s no margin, even a small surprise expense can send you straight into debt that’s nearly impossible to escape.
What to do when there’s no margin at all
Start with awareness. It’s amazing what shows up once you really see where your money goes. From there, commit to creating even the smallest bit of space. Ten dollars. Twenty. The emotional lift from that tiny success will do so much for you, to propel you forward, and give you hope.
Next, start a small “just in case” fund. A buffer between you and the next surprise. That’s what keeps small problems from turning into debt traps.
There are many more strategies that can follow, but it begins with that mindset shift. Moving from “this is impossible” to “this is possible, even if it’s small.”
Margin isn’t optional. It’s foundational.
Your Turn
Ask yourself:
What’s happening in our finances right now?
Do we have any margin?
If not, why not?
Then take one small step. Track your expenses. Cancel one recurring cost. Move even $20 into a separate account. You’ll be surprised how much lighter things feel when you start creating that space for new possibilities.
If you’re a couple
This lack of margin may be adding tension to your relationship too. Money stress can turn into blame, avoidance, or shutdown. Before long, the financial issue becomes a communication issue.
How are your money talks working right now? Do they help you solve problems together, or leave you feeling disconnected, and scared?
Take the Money Talks Quiz to find out how you and your partner handle money conversations. And get simple, practical ways in the WealthTalk Starter Kit, to make them easier.
And next time, we’ll talk about the hidden nemesis: the habits, fears, and stories that work to keep you from real margin and freedom. 💜
