How Full Is Your Tank?

Last week, we talked about your G.P.S. — your General, Personal, and Specific Purposes — and the roadmap they provide for where you're called to go, who you're called to be, and what you're called to do. If that conversation stirred something in you, I'm glad. Remember, when money is tied to purpose, it becomes incredibly powerful.  It becomes FUEL.  So, I want to ask a very practical question before we go any further down that road: how much fuel is in your tank?

Because here's the truth. You can have the clearest sense of direction in the world, but if you don't have fuel, you aren't going anywhere.

We raise our family in Michigan, but my entire extended family is in Virginia, which means we take a lot of road trips. The day before we leave, Lauren has every piece of laundry in the house washed and every girl's suitcase packed perfectly. While she does that, I have one job: get the car ready. I clean it out, run it through the car wash, vacuum every nook and cranny, and then I do the most important thing of all — I drive to the nearest gas station and fill our tank to the brim. Early the next morning, we load up and head out confident, settled, and not once worried about that little needle on the dashboard.

However, in my everyday life, I am the complete opposite of that. I notoriously wait until the last minute to fill my gas tank. Until I see that line resting fully on zero, I don't stop. The anxiety it brings can be overwhelming. When I have a Full Tank, I don't need to constantly look at the Fuel Gauge. But when I am running low, I'm always looking down, worried about how much I have left.

Sound familiar? For a lot of us, that's exactly how we live our financial lives. Always glancing down at the gauge worried if there will be enough in the tank. And that kind of worry has a way of stealing your focus from the road ahead — from the very purposes your G.P.S. is pointing you toward.

That's why I want to introduce you to a concept I call the Fuel Gauge.

In our personal finances, there are eight steps on our Fuel Gauge that show how much we have in the tank. These steps aren't just about increasing cash in the bank. They are financial health indications — targets that, when achieved in succession, give you the confidence of a Full Tank.

Here is how the eight steps break down. Step 1 is spending less than you make. Step 2 is giving 10%, which sets the tone for how you steward the remaining 90%. Step 3 is establishing a New Zero in Checking — a one-month cushion so that when you hit that number, you know the bank is closed. Step 4 is making sure you have adequate life, home, and auto insurance. Step 5 is paying off all consumer debt outside of your mortgage and student loans. Step 6 is investing 15% of your paycheck into a ROTH 401(k), primarily in the S&P 500. Step 7 is building a New Zero in Savings — a five-month cushion you only touch in a true emergency. And Step 8 is making sure your housing expense sits at or below 25% of your take-home pay.

When you have completed all eight steps, your Fuel Gauge will read full.

Yes, you need to be wise with your spending. But the goal isn't to simply cut your expenses to achieve a Full Tank. The goal is to increase your income so you can move through these steps quickly and get on with building the life you were created to live.

Your G.P.S. gives you the direction. Your Fuel Gauge keeps you moving.  Over the next several months, I will be teaching you how to fill each mark on your Fuel Gauge. Later this year, I’m excited to launch my new book, Increase, where you’ll be able to have all of these steps at your fingertips. 

Several of these steps are simple, others take more time. But this I can tell you with certainty: when you achieve a full tank, your life will change forever. You’ll never be worried about money again. And friend, that future isn’t far away. 

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Zach Santmier is the owner of Trumble Agency, Inc. and the author of the personal financial course, Increase. He focuses on helping families escape paycheck to paycheck living so they can freely pursue their ideal future.