So far, you have filed for bankruptcy, accumulated a huge debt on your credit cards, put your house on mortgage, and owe some people money. You’re in bad shape financially. Does that mean you can never own a business and rise above these financial failures?
People will tell you to pay the debt and stay out of money trouble. The problem is that doing so is easier said than done. You have dreams of your own, and even though you’re still pretty bad with money, you realized that the only way to sustain yourself financially is to start a business of your own. You can’t depend on employment forever, especially if you aren’t earning that much from it anyway.
It is okay to start a business even when you are bad with money. Plenty of people have done that and succeeded. Billionaires like Walt Disney also filed for bankruptcy. Even financial management expert Dave Ramsey once filed for bankruptcy because his company was highly leveraged and creditors began knocking on his door.
A study last year found out that only 29% of Americans are financially healthy, while 17% are struggling with most aspects of their financial lives. About 54% are struggling with “some aspects” of their financial lives. Imagine only having 29% of the American population saving and planning appropriately for the future. With these things in mind, do you think you shouldn’t take a shot at starting your own business? That’s one of the ways to become financially independent.
Call an Investment Manager
You have always wondered what’s it like to have someone look over your finances. You’re afraid of the disappointment, and you’re also somehow embarrassed by what they will see. However, if you’re in such dire financial shape, you should make that critical call already. Get whatever’s left of your asset in fiduciary asset management, wherein a third party will take responsibility for your investment decisions. It is the simplest way to get the help you need in managing your finances.
Pay Off Your Debts
Start paying off your debts. Put any extra money you have into credit card and mortgage payments. Set a deadline for when you will want to finish paying off all your debts. Stick to the schedule. Say, you want to complete all your obligations in a year. Make the necessary adjustments in your financial life to pay your debts.
Call the credit card company and check if you can consolidate the debts. That is an excellent way of slashing off interest rates and paying only one credit card company; it’s also the easiest way to pay off your credit cards’ outstanding balance.
Hire Someone You Trust to Look Over the Business Finances
It’s hard to break a bad habit, so that means you may need someone you trust to look over the business finances. Make sure this person is someone whose judgment you trust and who you are sure won’t dupe you out of your business profits. While you focus on product development, marketing, and digital advertising, your company’s financial manager can focus on balancing the sheets, paying the suppliers, taking care of the payroll, and controlling the expenses.
Understand That Time Is Money
Time is gold, right? Every second of your life should mean something—whether it’s making tough decisions for your business or spending time with your family. Remember this when you find yourself wasting time on meaningless things such as getting angry or focusing on the bad rather than the good. You only get 24 hours a day and at least six to eight hours of that should be spent resting. Make better use of your time by doing things related to the success of your business.
Since you’re not great with your finances, take crash courses about financial management. You can even get in touch with a financial coach for a one-on-one session. Invest in yourself and make use of every second the way you should also take care of every penny you earn.
The worst thing about someone terrible at handling money is the failure to recognize bad habits. You cannot do everything on your own. At the same time, you cannot expect to turn your finances around in a month or two or even a year. It will take a lot of sacrifices to get you from a bad place to a financially stable one. It’s the same thing with starting a business. You have to be courageous enough to start it but aware that you need to work on yourself.