Let’s talk about personal finances 🤗
Something we rarely talk about to anyone because it’s not so comfortable…but the thing is that no-one becomes a millionaire by staying entrenched in debt.
In theory, we all know what we should do when it comes to finances, but hardly anyone is actually doing it!
If you have debt either as a result of personal spending, or as I commonly see with entrepreneurs; having debt because you’re personally funding your business.
Do you have a plan to pay your debt back in full?
With so many things in business – if you fail to plan, you plan to fail.
Debt repayment is no different.
So do you have your debt plan figured out?
It is something that we have a module dedicated to inside the Business Wealth Engine but let me give you the highlights of creating a debt plan.
Below is 7 simple steps you need to do in order to become personally debt free!
Now before we start I want to remind you that ‘When you think about quitting…remember why you started!’ you can do this, you can personally be debt free!
1. Write down every single piece of debt you have – whether it’s a store card with heafy APR or a “loan” from your Granny. Write it down.
2. Next reorder the list is from the smallest balance to the largest balance.
3. Now look at the money you are taking out of your business to support your life and what your life spending is.
4. Next it’s marrying up the take home from the business, the current home spending and then the amounts available for debt repayment.
5. If in step 4 the answer is nothing then there are 2 things to be done – firstly are their money leaks in the business that means you are not taking home what you should be…and secondly are their money leaks in your personal life that need to be addressed.
6. Map out when each can be paid off – with the smallest balance getting paid off first (and making sure you pay off ALL minimum balances on all debt).
7. Then work the plan – stick to it 🙂
I’d like to thank you for reading, it’s nice to see that you’re starting to take the right steps in becoming personally debt free and remember. If you have any questions, if you need additional advice or help then please, please, please reach out because my mission in life is helping businesses take more money home from their businesses for them and their family to enjoy.
Thanks ever so much for taking the time to read my post I truly hope you’ve found it useful and insightful. If you have any questions feel free to contact us!
I am Annette Ferguson, CEO of Annette & Co. Chartered Accountant, Profit First Professional and creator of the Business Wealth Engine. We’re also SUPER social so don’t forget to follow. Here’s to your success!
Reinvesting money in your business is not a bad thing if it is done consciously. Now, what do I mean when I say that it’s