Can Becoming Your Own Boss Free You From Debt?

Becoming your own boss can be both an exciting and scary prospect, but if you’ve got talent, vision, and persistence, having your own business can free you from debt. However, it all starts with good debt management because the 452, 835 businesses born in 2014 mostly got their startup money from their own savings. Based on the report, entrepreneurship has seen a steady decline and this is due to the lack of funding and the guts to do it.

Aside from funding, would-be business owners also need to layout the plans for their businesses. Once the question of what kind of business they will dive into is set in motion, they also need to take care of payment processing services, inventory, accounting, and legal concerns. The to-do list won’t be short but working in your own company will be quite fulfilling.

Effective Debt Management

Effective debt management is the first step to financial freedom, according to experts. Most entrepreneurs use their own savings to start a company. In a Forbes report in 2013, 82 percent of entrepreneurs dipped into their savings accounts for their startups. The average, at the time, amounted to $15,000.

This is easier said than done though since not everyone who has dreams of putting up their own company have enough money to fund it. In fact, most don’t have savings at all because they are busy paying off an average per household debt of $203,163 and they are getting it from an average of $71,258 in gross household income.

It is easy to lose hope with these numbers in mind but there is a way to get out of debt.

Consolidating and refinancing all your loans is a good place to start, according to finance experts. It makes it possible for Americans to pay all loans in one go and at real affordable rates. Getting one that fits your budget may just be the fresh start you’ve been looking for.

It is imperative though that you take a look at your credit report before paying off your debts because there is a big possibility that there is an error somewhere. If you see that corrections need to be made, you might find out that you’ve already paid off one loan which can mean a lot of savings for you.

Save Money for Your Business Venture

Saving money is challenging but it can be done. The first step is to set a budget for monthly expenses and stick to that budget. If you have a hard time dealing with overspending, the envelope system will be of help. Putting a set amount of cash in envelopes will give you an idea how much money can be spent for certain things. This is very effective because once the cash inside the envelope is gone, it means you’ve spent enough. You can also save automatically by setting up a deduction from your salary every pay day. This can be routed to your savings account immediately. It is also a good idea to get a time deposit once you get enough cash for the minimum amount.

It will take time before you can save a substantial amount of money but if you keep at it long enough, you will have money for your startup. While waiting for your savings to grow, you can already start making detailed plans about your business so that you won’t have to cram when your money is ready. Becoming your own boss later will free you from debt because the hard work you put in will result to how much money you will make.

Let us help you get a high risk merchant account today!

Get Started