After getting only 3K from AmEx, and turned down by Bank of America, we were blown away to get a whopping 24K credit line on the Chase business card. I guess Chase thinks we need to finance a whole lot.
Thanks, Chase!
Fiance needs to buy about 7K in inventory and equipment. Once he quits his job at the end of the month, he just needs to make the stuff he has already sold to be profitable.
I am so excited and nervous. It's really scary out there on your own with no salary. No one in my family has ever done anything like this.
5 comments:
I'm tempted to stop reading your blog and come back in 6 months to see where you guys stand. You make a lot of money, decided to start paying off your debt, but then you go spend money on vacations and your SO is going to go into debt to start a business. Maybe I have missed something or you're trying to justify it to yourself through the blog or you're in denial. If I did not have any debt the money I pay on it every month could be used to spend, save, invest, or give as I see fit.
I agree with Jim. I don't understand your logic or thinking behind these decisions.
Barb1954
I went 100K in debt to go to school, and I would do it again. I'm a calculated risk-taker Barb.
A small outlay (10K) will allow my fiance to maybe even make more than me. But, more importantly, it will let him live his dream, which is a heck of a lot cheaper than mine was.
I don't think there's anything wrong with taking calculated risks. That said, however, the premise of your blog seemed to be that you have this great salary but you're broke. I thought your goal was to fix that. Instead, you're taking a vacation that, in your own words, you can't afford. Isn't it these kinds of decisions that got you into financial trouble or at least have prevented you from being not broke? I'm all for choosing a vacation and experiences over buying a new dining room table or flat screen TV (we spent $8,000 on a trip to Hawaii for our 25th anniversary, which we paid for it in cash). But I wouldn't put it ahead of other financial goals such as savings and retirement investments. I wouldn't go into debt for one either.
The reason behind most business failures is that they are under capitalized. I'm wondering whether your fiance has done cash flow projections for his business that will include enough money to pay himself a salary and, at a minimum, to pay for health and disability insurance? It's either very smart or very risky to quit one's job and start a business. The difference is all in the planning.
Barb1954
Be really careful with business credit, it may not be a good idea... I'm kinda with Jim on this one also.
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