Most small business owners are entrepreneurs - they have a great idea and off they go. Most take no financial advice and/or embark on any financial training whatsoever, and bit by bit get deeper and deeper.
Picked up these questions and thought they were a good 'test' of how well or not, we manage our finances:
- Do you pay interest only on your credit card each month?
- Have you bought consumer goods by extending your mortgage or using revolving credit in the past 2 years?
- Do you regularly exceed your overdraft limit?
- Do you worry about your debt repayments?
- Have you borrowed from one credit card to pay another?
- Did you set up more than half your borrowings over the past 2 years?
- Do you take cash advances on your credit card/s
- Could you live without a credit card?
- Have you ever purchased any consumer goods via 'no interest for 2 years' ?
- Have you been refused credit in the past 2 years?
These questions can be quite a salutory home-coming. Yes the last two years have been hard, but if these questions have been a wake up call, don't forget there are many great budgeting services in most countries. Don't be afraid to ask for help.
Ann Andrews CSP