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Episode Summary
When we talk about handling businesses, it’s inevitable that we talk about the state of our finances and how we’re handling those finances—income, sales, that kind of thing. And one thing that’s important to shed light on when talking about finances is debt, both in the personal side of things and the business side.
In this episode of Carrot Cashflow, Diego takes a deep dive into debt, the dangers of it, as well as why it’s important to include personal finances in discussions about business, especially as self-employed entrepreneurs.
In this episode of Carrot Cashflow
- Finance companies want to give people money…and debt (01:42)
- 2003, when Diego’s finance story starts (03:14)
- It’s easier to go bankrupt with debt than without it (09:25)
- An action point: lessen debt as an individual and as a business (12:24)
- The bad thing about credit: looking at actual numbers (13:00)
- Credit card debt can destroy us slowly and quickly (16:25)
- Err on the side of reducing debt (18:34)
- Taking control of personal debt (19:30)
- Something to do right now to start attacking debt (21:22)
- Why does personal debt matter when we’re supposed to be talking about business? (24:13)
- Should you start a business while saddled with a personal loan? (26:01)
- The interest on debt never goes away until it’s all paid off (28:43)
- Starting a business is taking on a personal loan to yourself (29:40)
- The current atmosphere says that debt is good (32:57)
- Should you take on debt as a business? (36:00)
- What if stuff hits the fan? Is there a debt payment contingency plan? (42:05)
- Low-interest rates aren’t an excuse to get what you can’t afford (44:10)
- Times to be aggressive in the business (48:06)
- Look at your personal and business financial statements (49:48)
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