Question: In this day and age, it is really hard to remain debt-free. And that is one of the things I admire most about CTMH. The company stays debt-free and still highly rewards their Consultants. How do you make the difficult budgeting decisions to keep it that way?
--submitted by Brenda, August 26, 8:23 pm
Answer: Thank you, Brenda. I know the subject of finances is a tender one, particularly in an economy when many people are struggling to pay bills and manage their debt. To those of you struggling to make ends meet, you have my thoughts and well wishes. Although everyone has their own approach to working with money, for me personally and as the CEO of a company, debt is always something I have had a very simple approach to: I avoid it.
I recognize that many business leaders choose to acquire significant debt for growth, investments and acquisitions they believe will strengthen their corporate position. I understand these motives and know that it can be a sound business strategy. But for me, I have chosen a different path. From the time I began my business and was the sole employee, working out of my kitchen, I treated debt with great care. I chose to work hard and grow organically, using what I could from my savings.
You may have heard the adage "Those that understand interest earn it, those that don't, pay it." I strongly believe in having a rainy day savings fund. Whenever I had personal profits, I first paid tithing to my church, then I "paid myself" in a savings account. By having that discipline early on, I trained myself not to miss that money and to live on the rest - when the money was gone, I needed to make the food, clothes, and gas I already had stretch until the next check.
I've tried to extend that same discipline to my business practice. We promptly pay all our obligations. We save for a rainy day. And then, when we need to grow, we look at the initiative and the amount we have in savings. If we have the money, we analyze all our options, and if we don't, the conversation is tabled. Sometimes it can be difficult to set aside what we want NOW for what we want LATER. But I want to build a legacy company that is here long after I am gone, and that goal makes it easier to stick to tough budgeting decisions day to day.
Sunday, September 18, 2011
Free from Debt, Free to Choose
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I like this post 100%! I am so blessed to have a money smart hubby that thinks like you do. If I have $5 in my pocket, i will spend it, so it's good he is opposite. I am thankful that you are that way too, bc CTMH is too great of a company to ever go under. :)
ReplyDeleteThank you for your daily posts. I just recently stumbled on your blog. In fact, right before you started answering questions daily.
ReplyDeleteI am impressed with your posts. "Out of the abundance of the heart the mouth speaks." I can tell what you say, via your blog, comes from your heart.
I have learned some life lessons and been reminded of other lessons I have already learned.
I look forward to reading what you have to say each day and find something I can apply to my life in each post.
Thank you for writing daily.
Thank you for your financial compassion and wisdom. I appreciate your stewardly approach and it makes me proud to be 'in your company'.
ReplyDeleteI commend you commitment to being debt free! With a young family that is not always the easiest choice but we strive for the same. It is an important lessen I hope to pass to on to our children. Thank you for creating a company that I am proud to be a part of, and that I can share with my family and friends.
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