So, you have started on your emergency funds. What about all that debt you have collected? Your student loans, business loans, credit cards, car loan or loans, and the money you "borrowed" from uncle Jimmy because you "needed" a new lens?
How would it feel to have no creditors? How would it feel to OWN all of your equipment? Amazing right? Debt is something that everyone thinks they can control, and something that we are taught we have to live with. It's been said by several people including Mark Cuban, that getting out of debt is one way to give yourself a raise. Instead of paying credit card companies, or bank financiers all that interest, pay off the debt and change the way you are living.
How do you grow your photography business without debt? Easy, you save. We'll talk about opportunity funds later. In starting a photography business, you may have to invest your own money into buying gear, camera's, or lenses. Don't go into debt over it. Just put one foot in front of the other, and be patient.
How do you get out of debt quickly? There are many forms such as cutting cable, selling a car, selling your house and living in an apartment, and many more. You may even have to sell a lens or two. I'm not asking you to sell everything, because you are a photographer and need equipment to do your work.
I am not talking about the mortgage you have on your house or studio, as those will be tackled in a later post.
Let's think for a minute. You have no debt except for the house and studio. What could you do when everything is paid off? Almost anything you want. For business this makes a lot of sense. You can rapidly deploy new strategies, and not worry about what the creditors will think, or how you will make the next car or even credit card payment.MPIX
has said in one of their videos that they are debt free, and it allows them to move quickly to the changing market. Wouldn't you, as a photographer and business owner, want that as well?
I encourage you to get debt free. Be intense. Get rid of the debt.
I am not a financial adviser, nor a CPA, so please consult with them if you have any questions for your own personal situation.