Financing your Small Business and Personal Finance
If you have started a small business, you know what it is like to have to figure out the dilemma of financing. Most people are comfortable with going down to the bank and getting a small business loan. Today on our What’s Up section, Nick and Johnny talk about how they started their service businesses. Johnny admits to have not borrowing any money, while Nick started his business using a credit card. Both are in agreement to borrow as little as possible because it makes you think about the purchases for your business, not to overspend, and to keep overhead lower.
In our conversation, we talk about Love Money – money give from friends or family, either given or lent. We also talked about bootstrapping – growing slow, just like putting one boot on at a time.
Then, we talk about personal finance. Nick and Johnny believe that personal finance is the foundation for a happy life. Nick shared how he made a turn around after listening to Dave Ramsey and learning how to correctly manage money: build an emergency fund, pay off debt (smallest to largest), save for retirement and kids college, invest, give and enjoy life. There is much more to it than that, but it is not complicated.
We also talked about leasing vehicles vs. financing a car vs. paying cash.