Case Study on Teddy & Mary, married and both in their late 20’s.   Net Income from their business:  $15,000   Debt:  $25,000 Business Loans   $10,000 Car Loans    $100,000 Mortgage     Monthly Household Expenses: $1200

If you own a small business and have some debt the following recommendations may help you along your journey:

  • Pay off your loans, starting with those that charge the highest interest rates.
  • Purchase Life Insurance. At your young age, you can get life insurance for a very reasonable price. Buy as much life insurance as you can possibly afford. If you wait until you are older, the premium cost only increases. Buying life insurance when you are young makes good financial sense because you will get more insurance for a lower cost.
  • Purchase Disability Insurance. Since you own your own business your livelihood depends upon YOU. By purchasing disability insurance, you are protecting your livelihood. Disability insurance will help pay your expenses during your disability.