Although many will say they are not engaged in the nature of their business “for the money,” wealth is nonetheless the standard by which we measure the viability and success of any business venture.
When it comes to finances and business, begin with the ultimate end in mind: wealth creation. For yourself and your family. For the communities you wish to impact. For a more secure and stable future and for the freedom that comes with it.
The first thing to address when we talk about wealth creation, is your personal debt.
Take it from Shakespeare:
“Neither a borrower nor a lender be, for loan oft loses both itself and friend, and borrowing dulls the edge of husbandry.”
― William Shakespeare, Hamlet
If you have NO debt to speak of, huzzah! You’re ahead of the game.
Wealthy people avoid debt as much as possible because they know that debt is a blood sucking vampire.
Carrying around consumer credit card debt won’t stop you from becoming wealthy, but it will slow you down and be much more difficult.
Trying to gain financial independence with debt is like running a marathon with a bag of bricks strapped to your back.
That doesn’t mean you need a huge capital investment to start your own business. But you do need to make smart moves to keep yourself from spiraling further into an unmanageable situation.
Don’t be a statistic:
- According to the American Bankruptcy Institute, 69 percent of people who file for bankruptcy say it was caused by their credit card debt.
- 75 percent of people on the Forbes 400 list said the best way to build wealth is to become and stay debt-free.
- There’s a direct correlation between debt and depression.
- A study of 33,720 U.S. households published in the January 2016 edition of Psychology Science found that those with higher levels of unemployment were more likely to purchase over-the-counter pain killers.