December has a way of squeezing us. Calendars fill up. Credit cards get a workout. Even family conversations can feel more pressured than usual. Which makes this an appropriate time to talk about something we don’t hear enough about in personal financial planning: margin.
Margin is simply breathing room. It’s the space between what you earn and what you spend, between what you owe and what you own, between panic and patience. And while margin rarely makes headlines, it may be one of the most valuable financial gifts we can carry into the new year.
After several chaotic years, many households quietly rebuilt some margin in 2025. Emergency funds inched back up. Spending became more intentional. None of this was flashy. But margin rarely is.
Here in Knoxville, we understand margin instinctively. It’s the difference between cruising down Kingston Pike on a calm afternoon and sitting in traffic on game day wondering if kickoff will start without you. So leave an hour earlier. Margin doesn’t eliminate delays; it just makes them easier to handle.
Financial margin shows up as cash in the bank, but also as flexibility. It’s the ability to say no to a bad financial decision, or yes to an opportunity without putting everything else at risk. It’s what keeps a surprise expense from becoming a full-blown crisis. In other words, margin turns life’s potholes into speed bumps.
During the holidays, margin matters more than we realize. Financial stress has a way of sneaking into gift exchanges and dinner conversations. Margin lowers the temperature. They make generosity easier and guilt spending less tempting. It helps us remember that money is meant to support our lives, not dominate them.
One of the quiet lessons of 2025 is that margin doesn’t require perfection. It’s built gradually. A little less debt. A little more saving. Fewer financial commitments that seemed like a good idea at the time. Margin grows when we stop trying to optimize everything and start leaving room for real life.
As we look toward 2026, think less about sweeping resolutions and more about small ways to create space. Could you simplify an account or two? Increase savings by 1 percent? Revisit a spending habit that no longer fits? These aren’t dramatic changes, but they’re powerful ones.
In personal financial planning, margin gives us resilience. It gives us options. And during a season that often feels overstuffed, it gives us peace of mind.
This holiday season, consider giving yourself, and your family, the gift of margin. Not more stuff. Not a perfect plan. Just a little more room to breathe. Because when the tree comes down, the decorations are packed away and a new year begins, margin is what helps us start January feeling steady, hopeful and ready for whatever comes next.
This article originally appeared in the Knoxville News Sentinel online on December 19, 2025.
