March 9, 2018 Cash Flow, ROI

What is your debt really costing you?

Sometimes it is lost opportunity, sometimes it is the price of interest.  What I see the most is a cashflow challenge because of the required minimum payments.

Just like money is a tool, debt can be as well.  Unfortunately however, most debt is not being used as a tool..

What do I mean that debt can be a tool?

When you are in the investing stage of something – whether it be starting up a business or beginning any investment really – you may want to leverage other people’s money to accelerate what you are creating.

What is most important is that you understand the nature of your investment and you know when and how the ROI is going to come back to you.  What I see way too often is investing as a process of doing business without a clear plan for ROI. 

Then one day you look at your debt and wonder what it is going to take to pay it off.

The answer most of us go to is “I’ll just make more money”.  The truth is most people don’t ever experience exponential growth in a way that will pay off the debt AND cover all ongoing costs.

Now you have a ship that is moving with all the expenses you are used to and choosing where to make adjustments becomes difficult.

This is why creating a plan for investing with a definite plan for ROI is so important from the beginning.  Then when you see you are getting off track you can adjust your spending in the moment and keep your focus on the places where you truly are achieving the ROI you were looking for.

It’s never too late to create the plan!  If we can be of assistance simply leave a comment.


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