Business Plans Help Small Business Owners Control Debt

This article was originally published Nov. 3, 2019 and has been updated.

Pictured Above: The best way to control your debt is to stay out of debt. Avoid unnecessary purchases, don’t spend more than you earn and know your cash flow.

Farrier Takeaways

  • Debt can lead to serious health problems and damage personal relationships.
  • Establishing a plan and sticking to it will help you by staying out of debt.
  • Save a year’s worth of income in a separate emergency savings account to avoid compounding an emergency with a large debt load.

If you control your debt, you control your life. Not all debt is bad, like a lot of gurus will have you believe, especially when you’re running a small business. Sometimes, you have some stuff called good debt, but you just have to be able to control it.

According to a 2018 report from the Federal Reserve System Board of Governors, 40% of adults in the United States don’t have enough savings to cover a $400 emergency bill. I was the guy who got myself into trouble. I always thought, “I’ve got credit cards. I can run up my credit card if I have to.” That’s not a good savings plan. Putting money into savings is pretty important. Emergencies come up.

Control Debt

The best way to control your debt is to stay out of debt in the first place. Have a plan and stick to that plan. It’s not hard to do.

Number one, don’t spend more than you earn. Simple but not simple. We want to grow our businesses…

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Shane westman

Shane Westman

Shane Westman, APF-I, is the farrier at the William R. Pritchard Veterinary Medical Teaching Hospital at the University of California, Davis.

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