The first big mistake that many of us make when we do not have a unique financial education, which is the basics, is to leave our money in a savings account or a checking account.
Never leave your money in a savings account; the reason is inflation.
You do not have to learn economics, you do not have to be an expert, but if there is something you should always be aware of in the country where you live, it is inflation.
Live beyond your means
Living beyond your means is when you spend more money than you earn in the month, or when you live from month to month spending all your money, and be careful with your money is yours, nobody says otherwise, and you can do what you most want with him. However, I assure you that it is bad for your future.
Buy things you do not need
Something that often happens, and in terms of statistics, women suffer more is buying things they do not need; here comes the psychological part again, and that is that many of us buy things on impulse, which is terrible for our money.
Be aware that when you buy something, you are not paying with money; you are paying with time spent in your life.
Since to get that money, you had to invest time of your life.
Loan abuse, lousy debt
Loans are not bad; they are tools; it would be the same if you talked to me about a knife that is a cooking utensil. However, it can be used to kill a person ─ it is an example already very burnt, I know ─ that is how credit works with your finances.
If you ask for a loan for television, let us go wrong; if it is for a game console, the loans should seek to offer you peace of mind or comfort, not a luxury.
But be careful with this; I am not saying that you should not take out a loan for this type of thing personally, I have never done it, nor would I do it; I prefer not to have a television than to be paying a loan to see it in my living room when it will not give me anything more than a luxury, entertainment.
Not saving month to month
Something you should never do, and this is the most dangerous thing of all, is not to save constantly; month after month, allocate at least 5% of your income to savings.
And it is that living the month, spending it all, will only lead to ruin because at some point, you will have a health emergency, or a home emergency, or a study emergency, and if you do not have anything saved, you will have an inconvenient time.
Never buy a new car
The car is less and less necessary, and many of our countries, although with a poor transportation system, also can mobilize us, which is what we are looking for.
However, if you need a car for your job, or just because you want it, never buy a new one.
Gambling, an invisible enemy
It is a tax on the poor because naive are those who think they will win the lottery. The funniest thing is that many see on television or in newspapers when there is a new millionaire for the lottery, but they do not realize the Millions of people who bet every day.
Better go save that money to invest and start a business; it will always be better than giving it away to a group of already millionaires for people who “believe” will be millionaires.
Buy low-quality things
Something in which many of us fail, and in a big way, is to buy useless or poor quality things that to save money; however, what we do is spend more money in the long run; why, when purchasing something of low-quality quality, this one gets damaged quickly and then we have to buy the good one, a quality one, that was what we had to do from the beginning.
The most expensive is not always the best, but if you buy something of inferior quality to save money, then you will have more terrible things than good things because, in the end, you will have to buy the good one.
Lending money to family or friends
This point is risky to deal with, but in my experience, it is that you should not lend to relatives. Unfortunately, that is the case; it has gone well, I mean very well in my case. I am 50/50, I have lent, and they have been bad, and I have lent, and they have been good.
Invest in something you do not know
The most crucial point and it connects with number one, is that leaving money in a savings account is not convenient, but neither is investing in something you do not know about.
There are many fraudulent businesses, but I will give you a trick to identify bad companies.
There will be good businesses, but you should know about them before investing, you should know about the risks, and something that I tell many is that you must take opportunities advantage of, yes, but if you are alive, there will be many opportunities that will not be the only one.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
I made a few rules. The main one is to be prepared and have a plan of action in a downturn. Some respondents even suggested drawing up official regulations. One study participant said, “It’s never too early to prepare. You should always have an emergency idea that you can implement quickly.”
When developing such a plan, think about how it will affect customer satisfaction, employee satisfaction, and the image of your business overall. If you lose sight of this, you can put all this at risk and damage the profitability and viability of the company. Here are a few tips that I explained as follows.
Don’t Panic:
Respondents talked about the need to remain calm and look for solutions.
One respondent succinctly noted, “Don’t panic. Do not compare periods of decline to past successes. Think more in the long term.” Read and learn how to survive the economic downturn. Go to a library or bookstore and buy/borrow a book: Financial Settlement Day: Experiencing a 21st Century Mild Depression by William Bonner and Beating the Crash: You Can Survive and Thrive in a Deflationary Depression by Robert R. Kaznodzey.
Position your business in changing conditions
The competitive environment in a recession is vastly different from the usual. Consumer preferences are shifting dramatically, forcing businesses to adjust accordingly. Again, respondents recalled how they thoughtlessly used discounts during a downturn and how long it took to recover. One respondent said: “Don’t drop prices or rather don’t lower your public/retail price. Use it as a starting point for lowering prices and limit your discounts wisely.” Another participant in the study commented: “I advise you to be incredibly careful when playing with price cuts. We have been trying to increase our corporate prices for a long time, and in just a few months, all this and much more have gone to pieces. We crossed out three years of demanding work in just eight months. It will take 3 or 4 years to return everything to its previous level. If you want to give discounts, do it wisely and think about how to present them initially.
Increase and accelerate the flow of funds
Remember that there is a difference between your “public” price and your “private” price. Focus on creating packaged offerings that add value to the customer without costing you too much. Watch for download drawdowns, which can be offset by online promotion or non-transparent sales channels, which will not significantly impact your pricing strategy in the future.” Think about what customers want and try to provide it to them without paying too much. Also, consider offerings3. Make a checklist of your spending habits and change it to include only the essentials. Use the extra money you usually spend to create an Emergency Cash Fund. Also, learn to do more things for yourself without hiring or paying others.
The team needs to be more productive than ever
Ensure your current job is in a critical sector to avoid layoffs during a recession. Most jobs in healthcare, food production and distribution, and government and military positions are safe. Avoid retail and construction or any areas where you can easily do without. Do not go into debt during a recession. If you learn to live on less money (putting it aside in the cash as mentioned above reserve), then as the economy grows, you will make more money faster thanks to the skills you acquired during the crisis. You want to survive, but the goal is to develop.
Reducing and slowing cash outflows
Find a niche where you make money, are interested in it, and get involved. Even when people are scared, and money is tight, you can still make money if you have the skills or services people need. Grow food to sell, learn how to renovate a house, rent out a space, teach others about financial planning, learn or apply skills and earn money from them. Hard times won’t last forever, and you can delay recovery if you save where you don’t need to.” If customer satisfaction and service quality suffer, it will be harder to attract current and new guests when the downturn ends. Consider the following sentence: “DO NOT REDUCE COST BY REDUCING QUALITY. Prices can be lowered but set a limit that won’t prevent you from raising your ADR next year.”
Summary
Keep these five instructions in mind as you plan and implement your survival strategy during this challenging time. Do not panic; think clearly and plan strategically. Everything will be fine!
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
High employee turnover affects more than just employee productivity. Employee turnover also affects the employer branding of your company. Due to the prominent level of employee turnover, business costs increase, and profits decrease.
The cost of replacing one person is usually more than his monthly salary – with most of the losses associated with lost profits. Replacing thirty people with a salary of $677 will cost the company an average of $30,500. Therefore, most large companies keep records of staff turnover indicators and analyze the change in turnover rates over time and by the department.
When one or more positions are frequently vacant and vacancies need to be filled regularly, it is considered that there will be a high turnover of staff.
Voluntary rotation occurs when an employee voluntarily leaves the company.
A forced rotation occurs when an employee involuntarily leaves the company.
In some cases, the root cause of churn is because an employee has decided to leave their list.
However, this can result from how your company conducts its business in many cases.
The more retention issues you have, the more likely you will notice a change in energy in the office.
The low productivity of your employees is a direct cause of constant employee turnover. This is one of the most visible signs that affect the company at a basic level.
With constant staff turnover, it is not easy to maintain an atmosphere of trust and confidence between employees.
In addition, failure to create a shared corporate culture is at risk with high employee turnover.
The amount of employee turnover for a company is significant.
Every time an employee leaves, the HR department must re-enter the recruitment and selection process.
Since employee rotation is quantifiable if you look at your turnover and the cost of hiring, you will see a direct correspondence between the two.
The goal of many companies is to reduce the average turnover. This can be done in distinct methods, depending on what works best for your company.
So, what does high turnover mean?
We can say that every time an employee enters or leaves the company, there is a staff rotation when a position is constantly filled and then abandoned due to high turnover.
High turnover of employees has serious negative consequences for the company. If you have a high turnover, it is essential to stop and analyze why this is happening.
You can then act and make the necessary adjustments to bring it down.
To create an action plan to prevent high employee turnover, you must consider the data received from all employees who left the company, at least in the last year.
If you have more time and data, you can also look further to analyze employee turnover over a more extended period.
The calculation should not include those who left the company for reasons such as retirement. The turnover rate does not take these cases into account.
When analyzing employee turnover, we are only interested in other cases, such as when people leave because of dissatisfaction with their job, duties, or the company.
Turnover types
Voluntary rotation
As the name implies, such a rotation occurs when an employee voluntarily leaves the company.
The reasons for this may be different.
Most often, the reasons are they have found a better job, disagreements between colleagues, they feel undervalued or underpaid, they cannot adapt to the company culture, etc.
You will never be able to satisfy everyone, and the condition you propose will not suit everyone.
However, your duty as an HR manager is to create a comfortable atmosphere in the company.
In addition, it is essential to recognize the merits and achievements of your employees and praise them so that they feel recognized.
The above causes occur after an employee is hired, but sometimes voluntary rotation can occur due to a poorly planned and executed recruitment process.
In this case, you can hire an employee quickly without thinking about whether he fits the position or the company culture.
Forced job change
When an employee leaves the company, he falls into forced rotation. It is easy to place the blame on a departing employee.
However, as a company, you must ask yourself if this situation is due to something you did wrong. This may include a lack of necessary tools and training, resulting in the employee not being able to perform their tasks properly. These involuntary rotations cannot be 100% avoided, but it is best to minimize them as best as possible.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Today, risk management is one of the highest-priority professions. If you think you are going to make a career out of just calculating numbers, you are wrong. This is not just a career that you can do in a day. You must present yourself with dignity, understand and work with all departments of the company, building relationships along the way. Overnight, a career in risk management has grown into one of the most important professions in the world, and that is no understatement.
The people who work in the risk management department have the following responsibilities:
Minimization of financial and other losses of the company in which the specialist works.
Conducting work to identify threats of financial and other losses.
Search for sources of risks through an audit, analysis of decisions made by top management, and work with reporting documentation.
Analysis of assigned risks, development, and subsequent work with risk maps and other methodological documentation.
Daily monitoring, analysis of the causes of occurrence, fixation of risks, and organization of the management process.
Performing calculations and evaluating the risk management methods used.
Keeping records and storing documents in a personal working archive.
Control over the fulfillment of assigned tasks.
Methodological support of employees and senior management.
Risk managers make up strategies that conduct research, identify and control various risks, and help companies avoid severe economic and reputational losses. Specialists allow you to maintain the profitability and efficiency of business processes in any situation. In 2021, the career guidance center ProfGuide created a reliable career guidance test. He will tell you what vocations are best for you and give you his judgment on your personality type and IQ.
Risk is a situation of uncertainty that can make the company vulnerable to different market circumstances.
For this reason, here are the following tips to become a successful risk manager.
Risk identification
First, the manager must identify which risks may affect the company.
For this, you must analyze historical data and detect situations of uncertainty that, at the time, became risks for the profitability of the business.
In addition, you must assess the current context by using powerful tools such as SWOT analysis, interviews, Delphi technique, and brainstorming.
Qualitative analysis
This type of analysis is performed as a filter to detect the risks that need to be addressed through a more delicate, complex, and advanced study.
Therefore, this is a subjective classification stage whose results are captured in the risk assessment matrix, serving as objects of study in the next step.
Quantitative analysis
At this stage of the risk management plan, it is possible to investigate the probability of occurrence of the risks and estimate their consequences for the company.
After mapping the potential risks, you should first select them and establish an order of priority, considering that not all bets must be controlled, mitigated, or eliminated.
Probability: Each risk has a certain chance that it materializes. You can follow a quantitative (database) or qualitative line to calculate it. To order them, it is necessary to consider the following variables:
Impact: There is a dimension of the effects of each risk caused by its materialization. Its calculation requires the analysis of historical data. In some cases, it may be necessary to conduct a qualitative study – due to a lack of numerical data.
The risk criticality indicator is defined by multiplying the absolute values of probability and impact. The higher the value, the more critical the risk.
The Decision Tree and the Monte Carlo Simulator are other equally exciting tools for prioritizing risks.
Once the risks have been detected and their priority established, it is time to plan the responses.
Planning response strategies
After completing the previous stage, the manager must establish action plans and plan response strategies to deal with each threat.
In this sense, the action plans allow the manager to focus on prevention, thus avoiding the appearance of risks. For their part, response strategies make it possible to minimize the effects of the materialization of the risk.
Finally, it is essential to control the execution of the plans and the performance of the risks.
Monitoring
The effective control of plans and risks requires the creation of reports, development of procedures and policies, implementation of control and monitoring mechanisms, and the definition of performance indicators (KPIs).
As for the latter, when properly defined, they can provide reliable data and information for decision-making.
After following all the steps and monitoring the risks regularly, your company will begin to reap the rewards of efficient risk management.
For this to happen, you must align the administration with the objectives and the company’s strategic planning. When this level of excellence is achieved, you can turn risk management into a tremendous source of business opportunity.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Success is not final; failure is not fatal. It is the courage to continue that counts.
We all are uniquely creative, but fear of failure suppresses it. We may have a talent we want to pursue, but social pressure and worries hold us back from achieving what we want. It’s like living without being alive.
Thomas Edison would have never been the most significant inventor if he hadn’t strategized his failures to reach his goal. You can do it; you have it inside you. So, strategize your failure, and devise a plan to move further; the courage to drive ahead matters in every journey. You open the door to unlock creativity by implementing this.
Challenge your fear to unearth the most stunning skills! You may not know what has been buried inside. So don’t let your creativity recess back in your mind. To have a great career, you need to allow mistakes and evolve daily. Develop a creative strategy that enables you to pursue what you are passionate about. A ‘great’ career asks the bulk of time, patience, hard work, and the ability to accept challenges with a growth mindset.
Do not accept success to happen overnight
Success isn’t always about greatness. It’s about consistency.
It is for individuals who perceive success to occur overnight. You’re mistaken unless your ancestors left a hunch of dollars, 17 properties, and six luxurious cars for you. It sounds like a movie, right? But, of course, it only happens in the film! Once you enter professional life, you should bend your efforts for a rewarding career. The initial years require a tremendous amount of hard work, which develops valuable experience and learning.
A growth mindset has paved the way; excellence is guaranteed if you follow this concept! It would be best if you were eager to learn and work hard for a promising future. And the ability to accept constructive feedback.
The art of working hard in the right direction
Extrapolating out the ‘right direction’ is a requirement of modern times. Therefore, learning the art of working hard, educating one on the intellectual strategies for a better outcome.’ However, maybe you are only consuming your energy in the wrong dimension, which doesn’t guarantee success.
The power of intelligent working will help you in accomplishing your milestones. Combining both will result in relatively more than ‘just energy consumption. Therefore, aligning your goals with your thoughts will make you a competent worker with a hard-working attitude.
Moreover, discover something you love, and you won’t feel like it’s burdening. A professional career coach reveals the secret to working hard is to do what you love. You are best fueled by the ‘passion’ to achieve your goals and comprehend why you want to do it.
Mastery in self-assessment
A valuable tip- conduct your performance analysis at the end of the day and note down your area of improvement. You will develop a sense of clear direction in your career by enacting this.
However, one essential attribute that contributes immensely to your career is to master the proficiency of endurance. You can take specific courses on endurance training to keep your stamina and energy level high—Groom yourself with better and success guaranteed skills to acquire a promising career.
Actions speak louder than words
Instead of boasting about your abilities, demonstrate them through discipline and excellence. The importance of action outweighs the worth of mere words.
Furthermore, to master the auspicious skills, one must make a habit of reading. Specifically, self-help books act as the sun on a gloomy day. Homework develops our ability to think logically and accumulate a great wealth of knowledge. You can learn excellent tips and implement them for better character development. Learn from those who succeeded and inspired your career.
Reading is one of the cheapest options but a valuable one! You can read articles, studies, and books and listen to many YouTube podcasts. Moreover, to become an expert at something, you should practice it consistently.
Communication is the key to success
Improve your communication skills today if you don’t already have them. To minimize misconceptions, be proactive in communicating with your co-workers and employer.
Learning new skills or researching career development is truly rewarding. Always aim to work in an environment that empowers you to be the best version of yourself and allows you to be productive and creative.
In addition, never overlook the importance of reading people. It helps you in determining who is reliable and not. For instance, many employees overshare with their colleagues, which only turns into a new hot topic for others and ruins your impression. So, never discuss your private and previous company matters with colleagues nor indulge in gossip. If you aspire to succeed in your career, you should read people and determine their reliance. Take decisions based on your actions and not just words.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Here are the following clever ways to manage loans and debts.
Aerial view of your debt
The best and most practical way to handle borrowedmoney is to create a plan and proceed accordingly. But unfortunately, your debt can be mounting with compounding interests with the passing day. To avert this unpleasant situation, assess a broader view of how much you owe.
Make a list of the various types of loans and the debt you own, such as credit card balances with higher interest rates; making an extra payment each month can lower your overall costs. And enable you to pay back the debts quicker. Credit cards and personal loans have higher interest rates.
In contrast, home or student loan has lower interest rates and tax benefits.
However, once you have devised a strategy to pay off debt more than your monthly premium, this will keep you ahead of your loan duration and may also grant you certain financial perks!
Furthermore, extra payments can reduce the period of your loan plan. It will benefit you in clearing your debt and allow you to retain your solid financial position sooner. In addition, you can significantly reduce the higher interest rate by paying early. Plus, your credit score will increase and lower when your interest amount and down payments verily. As a result, you can save money.
While you’re thinking about repaying more than the minimum on your monthly loan installments, take your time to understand the lender’s policies. Although some will permit you to repay your loan sooner, others may demand penalties, offsetting the value of making an early repayment.
Have a risk management plan
In a movie, it’s constantly cooled to see your favorite hero overcoming any problem he’s trapped in by having a backup plan. Likewise, you always find it amusing; let’s practically implement and have a feeling of ‘hero.’
Life is the name of unpredictable events. For example, when talking about finances, your loan provider could increase rates or repayment terms, or you might undergo changes in health or employment which could prevent you from working. In this case, being backed up by emergency saving funds can be turntable for you.
Time management skills
Late payments can add interest charges and black marks to your credit report, obstructing the next possibility of borrowing money. Therefore, time management is vital in excellently managing debt or loans. To avoid unfortunate events occurring in the future, consider setting up reminders to notify you regarding your next payment timely.
However, paying off monthly payments on time can be a practical way to avoid late fee charges that may ruin your credit score. These unnecessary results will turn your financial position upside down, so be thoughtful of them and ensure to pay on time.
You can pursue this option by setting up a budget. In this way, you can conveniently follow on timely making payments. Moreover, you can set aside a portion of cash to avoid the occurrence of unfortunate financial instability.
Be realistic while making choices
When you’re in debt or have a loan, it’s relevant to be realistic and classify your expenditures into essential and non-essential categories. Distinguish between requirements and desires. This challenging yet simple tip can keep you from going around in circles.
Invest your bonus wisely
Dig yourself out of debts or loans in a practical way. You may come across an irresistible buy, but paying off debts with additional funds is imperative to living a calm life. Any excess revenue should preferably be used to pay down debt.
If you require assistance, seek it
If you’re still unsure how to handle your debts, speak with a professional financial advisor who can help you understand your alternatives and establish a strategy.
Once you’ve figured out the difficulties, managing a loan may be a pressure-less and straightforward process. Being financially diligent, creating a comprehensive and practical strategy, and paying off your debt as soon as possible can put you ahead of the game and make maintaining your loan very simple.
If you assume you cannot handle the responsibility of clearing a debt after incurring it, fret not, there are several plans available for your assistance. However, consulting a professional financial advisor can turn the situation in your favor. They will guide you throughout your journey and make it stress-free. We wish you luck!
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Here are the mistakes that can make your career collapse.
You are chickened out by failure!
Forget building your’ house of cards ‘if you are afraid of failure. You cannot ascend the ladder of success if you are frightened of loss. It may tremendously ruin your career. The courage to rise after failing is what makes you truly successful.
Take the example of Michael Jordan, the most iconic basketball player. He could not have been considered NBA’s most outstanding all-time player if he hadn’t viewed failure sensibly. In one of his statements, MJ worded
I’ve missed more than 9,000 shots in my career.
I’ve lost almost 300 games. Twenty-six times I’ve been trusted to take the game-winning shot and missed. I’ve failed over and repeatedly in my life. And that is why I succeed.”
Furthermore, several inspirational personalities share their insightful lessons on failure. You must grasp the core part and put it into practice. This one helpful tip will undoubtedly change your life!
Scant crisis management
When written in Chinese, the word ‘crisis’ is composed of two characters. One represents danger, and the other represents opportunity.
Your career is not a linear slope; it’s challenging, fruitful, and consists of crises. Lacking crisis management skills is the same as being sent to a war with no weapon. You may never succeed if you cannot decipher a crisis and an opportunity. Specific problems are a disguised opportunity; through crisis management, one can turn the situation in their favor. Conversely, assessing the gravity of a crisis and devising strategies to overcome it leads to a trajectory of a bright and hopeful future. Furthermore, you can enroll in professional development courses to master this skill.
Intelligent but not emotionally
We often disregard the significance of emotional intelligence in our careers. Yet, it is an influential triangle for your career’s pyramidal structure. Daniel Goleman’s discovery has given a new dimension to success in a career. High EI gives you a realistic perspective and accurate self-perception, which helps build a great job. Conversely, your career may be stalled due to the inability of EI.
Today, your success is directly proportional to emotional intelligence.
What is emotional intelligence?
Emotional intelligence involves the capability to detect and manage one’s own emotions and empathize with the feelings of others. A pleasing EQ assists you in developing better relationships, reducing team tension, deterring disputes, and career satisfaction. Furthermore, with high emotional intelligence, you can boost the productivity and engagement of employees. As a result, when hiring and promoting people for managerial positions, businesses prefer applicants with a high ‘EQ’ instead of IQ.
Due to EI, if you are dealing with stressful and uninspired emotions, you assess these emotions and regulate them with this remarkable skill. You will handle the matter with appropriate actions when you can identify a feeling and comprehend what’s causing it.
Non-progressive behavior
Your career may not progress as it should be based on your potential if you halt in behavioral improvement areas. One must advance in professional behavior annually for a rewarding career upon constructive criticism and feedback.
Jealousy, jealousy!
Jealousy is a roadblock to your accomplishments. Likewise, comparing oneself to others’ spin-offs causes low confidence and self-esteem. Instead, one should strategically perceive their strength and success for career growth.
Jealousy is the reason that dominates your peaceful life with discontentment.
Every possibility to realize your ambitions, live the best possible life, and receive what you’ve always desired evaporates under the shadow of your anxieties. So, if you choose to be happy, you must confront and address your worries.
You will never question yourself if you recognize who you are, what potential you possess for accomplishing, and how phenomenal you are.
Directionless Career
If you don’t have a vivid picture of where you are headed in the next five years may result in uncertainty and doubt in career decisions. You ought to have a clear vision of your career.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
To be wise is the highest effort of man, his highest act of self-determination.
An excellent education nurtures a person in two manners.
Personal development
Future development
Knowledge carries the responsibility to see that it is well used globally.
Education has encouraged people to conduct an internal analysis, reflection, self-perception, and questioning.
To attain Self-mastery
The goal of education is not mastery of subject matter but one’s person.
This powerful Greek quotation depicted what an excellent education is meant for. Through education, you enrich your brain with updated and valuable information to improve your ability to think and analyze. The subject matter is merely the tool; the real purpose of education is to enable one to use ideas and knowledge to forge one’s personhood.
An excellent education cultivates vision, imagination, and spiritual sensitivity. It encourages benevolence, compassion, and gentleness.
To thrive sustainably
Education aims to give you the moral courage to make the world livable and humane. Our world already has many ‘successful’ people. It desperately needs more peacemakers and healers. The masses can develop sustainability and efficiency with sustained efforts and excellent teaching. Education facilitates comprehending the effect of knowledge in the practical world.
Lifelong empowerment
Education is the movement from darkness to light.
Every individual has an innate personal development that you can unearth through self-actualization. Education is the medium that nourishes your personal growth, which has a considerable impact on your relationships and success in your career. Self-actualization enables everyone to become what they are capable of. This path involves experiencing life thoroughly with total vocation. Furthermore, it develops your vision and purpose for life.
How does it create better opportunities for a rewarding career?
The level of education is correlated to a job
Education enlightens, formulates, and hones organizational and personal skills. It will assist you in shining at work and withstand the challenges that practical life throws at you.
Education is a significant step in enhancing your skills and staying competitive.
As per the Data from The Bureau, employees with a bachelor’s degree receive $1,248 per week on the median, while those with only a high school diploma get $746 per week.
These statistics emphasize your education level; you should never give up on receiving an excellent education. Of course, you get more hard skills training and information about specific crafts when you proceed with your education. But, on the other hand, more artful, equally vital abilities are also learned.
Gentle talents are interaction, inventiveness, team spirit, cooperation, problem-solving, and rational reasoning. Each soft skill provides value to your present workplace but also assists you in planning to move to the next level toward your professional objectives. Blended learning competency is critical since companies will have fewer workforce resources if workers lack these abilities.
Sharpens your financial intelligence
Becoming financially literate and understanding how to manage money is a skill set that lasts a lifetime. Unfortunately, because it’s not taught in our education system, many students lack the knowledge and skills needed to become financially responsible—and economically accessible.
An excellent education broadens your horizons and enables you to manage your finances intellectually. It can help you develop a budgeting knack and economic comprehension to set you in good stead for life.
Job security
Job stability is the most integral factor for grads with a bachelor’s degree while looking for work nowadays. It is vital since maintaining solid employment gives a person a sense of security. In addition, degree holders are graduating and need a strategy to manage their student debt without feeling pressured.
The digital revolution in our culture now questions what will be available in the coming years. With the rise of technology, new occupations are growing and being launched.
If you have a proper education, you are eligible for a fine job. If you are highly skilled and competent, it will make you an asset to your company. Furthermore, it will guarantee job security for the future.
A thinking individual has a better chance of acquiring and keeping the job they want in most circumstances. It indicates that the more education you have, the more job opportunities you will have after graduation. If you have a decent educational background, your employment prospects are not limited.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Top Reasons to Steer Clear of Debt and Build Wealth
The main reasons to avoid debt include eliminating interest payments that drain profitability, improving cash flow flexibility, reducing financial stress, and allowing you to build real assets instead of obligations. Unlike debt-fueled growth that requires constant payments and carries significant risk, debt-free wealth building creates a foundation of stability that compounds over time.
When I started Complete Controller over 20 years ago, I believed debt was a tool for growth—until I saw the pattern repeat across thousands of clients: the businesses thriving were those controlling their debt, not the other way around. Research shows people spend four times more with credit cards than cash, and the average American now owes $63,000 in debt. This article reveals the evidence-based reasons debt holds you back and shows you exactly how to build wealth without it, including the psychological impacts most financial advice ignores.
What are the real reasons to avoid debt?
Debt eliminates interest payments that drain your profitability and personal cash flow
Avoiding debt improves your credit score and financial flexibility without monthly obligations
Debt-free growth enables investing capital into assets that appreciate rather than paying lenders
Avoiding high-interest debt reduces financial stress and provides peace of mind that compounds
Building wealth without debt allows 100% ownership and control of business and personal finances
The Interest Payment Burden Destroys More Than You Calculate
Debt math sounds reasonable until you factor in reality. Most people compare a 3% car loan to a 5% investment return and think borrowing makes sense. But that 5% investment return faces taxation—at a 25% tax bracket, your actual after-tax return drops to 3.75%, barely ahead of the loan rate.
For small business owners, this calculation becomes more devastating. Business debt typically runs 6-12% interest rates. A $200,000 business loan at 8% over 10 years costs approximately $95,000 in interest alone—money that could have gone directly into equipment, inventory, or expansion. That’s nearly 50% more than you borrowed, with no assets to show except the original items financed.
Hidden costs compound the problem
Beyond raw interest calculations lie transaction costs, mental burden, and opportunity costs. Making payments requires time and attention. Tracking multiple accounts creates complexity. The psychological weight of carrying balances affects every financial decision you make.
Research from the Federal Reserve reveals that households carrying debt report significantly higher stress levels and reduced financial satisfaction compared to debt-free households. This stress translates directly into impaired business decision-making—stressed business owners demonstrate reduced creativity and flexibility in strategic thinking.
Debt Fundamentally Changes Your Spending Psychology
Scientific research proves that people spend 12-18% more when borrowing money compared to paying cash. Brain imaging studies show credit cards activate the reward center of your brain—the striatum—driving greater purchasing through motivation rather than simply reducing payment friction.
This behavioral change extends beyond individual purchases. When you have access to credit, your brain perceives your financial capacity differently. You justify premium upgrades, extended warranties, and higher-priced options because the loan creates psychological distance between spending and paying.
Business spending amplifies the effect
For entrepreneurs, this psychology proves particularly dangerous. A $50,000 line of credit intended for growth often becomes a buffer for operational inefficiencies. Instead of optimizing processes or cutting waste, businesses with easy credit access maintain outdated practices longer.
The data confirms this pattern: 80% of new cars are financed while only 38% of used cars require loans. This dramatic difference demonstrates how credit availability drives consumption beyond what buyers would choose with cash constraints.
The “Invest the Difference” Strategy Fails in Practice
Financial advisors promote borrowing at low rates to invest at higher returns. Mathematically perfect. Practically? Almost nobody executes it successfully.
The strategy assumes every dollar you would have paid toward debt gets invested systematically. Studies reveal most people either spend the freed capital or save it without clear investment plans. The theoretical gain evaporates through human behavior.
I paid off my mortgage early against some advisors’ recommendations. Instead of that $2,500 monthly payment disappearing into vague investment plans, I gained real cash flow for strategic deployment. Some months I invested it. Other months I seized unexpected business opportunities. The flexibility proved more valuable than theoretical returns.
Why entrepreneurs face greater risk
Business owners face amplified execution risk. You borrow $100,000 for expansion, planning to invest freed cash flow. Then markets shift, employees leave, or clients depart. Suddenly that “investment capital” covers operating expenses while debt payments remain fixed.
Complete Controller data from over 20 years shows businesses maintaining lower debt ratios consistently outperform leveraged competitors during economic downturns. The pattern holds across industries: debt reduces rather than enhances strategic flexibility.
Risk-Adjusted Returns Change the Equation
Debt represents guaranteed obligation. Investment returns carry uncertainty. Fair comparison requires matching risk profiles—comparing your 4% mortgage against 4% Treasury bonds, not volatile stock returns.
When properly risk-adjusted, the supposed advantage of leveraging disappears. Treasury yields typically hover near mortgage rates. Factor in taxes and transaction costs, and you’re actually losing money through complexity and effort.
Business debt multiplies hidden risk
For small businesses, risk considerations intensify. That $100,000 loan at 8% creates guaranteed cash drain regardless of business performance. But projected returns from borrowed capital? Those depend on successful execution, market conditions, employee performance, and competitive dynamics—none guaranteed.
Our analysis of thousands of small business clients reveals a consistent pattern: businesses that bootstrap growth through retained earnings demonstrate 40% higher survival rates after five years compared to debt-financed competitors.
Tax Benefits Rarely Materialize as Promised
Mortgage interest deduction arguments collapse under examination. Many homeowners discover they’re taking standard deductions, making mortgage interest irrelevant. Others find deductions worth far less than anticipated due to lower tax brackets or AMT limitations.
The principle applies broadly: adjust both debt costs AND investment returns for taxes before comparing. Most analyses fail this basic requirement, creating false justification for carrying debt.
Business owners face similar miscalculations. That 5% business line of credit might seem reasonable against 8% projected returns. But have you adjusted those returns for corporate taxes, state taxes, and the risk of non-materialization? Proper analysis often reveals negative real returns after full adjustment.
Cash Flow Freedom Outweighs Everything Else
Monthly debt payments compress cash flow regardless of interest rates. A $200,000 mortgage at 4% requires $955 monthly for 30 years—$343,800 total for a $200,000 loan.
In retirement, when flexibility matters most, that payment represents massive constraint. With a $500,000 portfolio using 4% withdrawal rates, you have $1,667 monthly. Your mortgage suddenly consumes 57% of safe withdrawal capacity.
Business impact proves devastating
Over 20 years at Complete Controller, I’ve watched this pattern repeatedly. A profitable business making $10,000 monthly takes a $50,000 loan at 6%. The $1,000 monthly payment seems manageable until opportunity arrives—a partnership deal, market expansion, or strategic acquisition.
That committed cash flow makes opportunities feel unreachable. Competitors without debt constraints move faster, capture markets, and compound advantages while debt-burdened businesses watch from the sidelines.
Eliminating debt frees that payment for your control. When we paid off our business expansion loan early, that $3,500 monthly payment became investment capital, emergency reserves, or expansion funding as conditions warranted—flexibility worth more than any interest rate differential.
Psychological Freedom Enhances Strategic Thinking
Research confirms that financial stress impairs decision-making equivalent to losing a full night’s sleep. Business owners carrying debt operate with measurably compromised cognitive capacity—less creative, less flexible, more prone to poor strategic choices.
Every payment reminds you someone else claims your future earnings. This psychological weight affects how you approach opportunities, risks, and decisions. You become conservative not from prudence but from constraint.
Complete Controller clients who eliminated business debt consistently report the same transformation: clarity returns. Without debt obligations looming, they think about building rather than earning. Some pivot business models. Others invest in teams. Many take calculated risks they wouldn’t have considered before.
Peace of mind translates to business performance
This isn’t soft thinking—it’s quantifiable in business outcomes. Debt-free business owners make better hiring decisions, negotiate stronger deals, and spot opportunities faster. A clear mind unconstrained by payment obligations performs at higher levels across all metrics.
Studies examining entrepreneurial performance show debt-free founders demonstrate 35% higher innovation scores and 28% better strategic decision quality compared to leveraged peers. The mechanism is straightforward: reduced stress enables better thinking.
True Wealth Means Complete Ownership
Building wealth debt-free means owning 100% of what you create. No lender claims, no payment schedules, no terms to follow. You control what you do with accumulated assets—redirect, reinvest, or pass to the next generation.
Borrowing to build wealth creates fractional ownership. A business taking $200,000 in loans effectively cedes 25% of revenue to debt service. That’s structural limitation, not temporary inconvenience.
Consider two service businesses starting with $100,000 founder capital. Business A invests all cash, grows steadily, reinvests profits. After 10 years: $500,000 in assets, fully owned. Business B invests $50,000, borrows $200,000 at 7% for “faster growth.” After 10 years: They’ve paid $120,000 in interest, still owe principal, and despite faster initial growth, net wealth after debt service trails the conservative approach.
Final Thoughts
After 20 years helping businesses navigate financial challenges, the evidence is overwhelming: avoiding debt isn’t about being conservative—it’s about being strategic. The math, psychology, and practical outcomes all point the same direction: debt constrains more than it enables.
Real wealth comes from building assets you fully control, maintaining flexibility for opportunities, and operating with clarity instead of stress. Start where you are, eliminate existing obligations systematically, then build without borrowing.
Want expert guidance on implementing debt-free growth strategies for your business? The team at Complete Controller specializes in helping entrepreneurs build sustainable, profitable businesses without unnecessary leverage. Contact Complete Controller to discover how proper financial management can transform your business trajectory.
Frequently Asked Questions About Reasons to Avoid Debt
Is all debt bad, or are there times when borrowing makes sense?
While most consumer debt damages wealth building, strategic exceptions exist. Mortgages for primary residences at rates below 4% may make sense if you have stable income and 20% down payment. Business equipment loans that directly generate revenue exceeding the loan cost can work. The key distinction: productive debt that creates immediate cash flow versus consumptive debt that only creates obligations.
How can I transition from debt-dependent to debt-free without hurting my business growth?
Start by stopping new debt accumulation while maintaining current operations. Create a debt elimination plan prioritizing the highest-rate obligations first. Redirect freed cash flow from each paid debt to accelerate remaining payoffs. Most businesses find that forced creativity from cash constraints actually improves operations—you optimize processes, negotiate better terms, and eliminate waste when borrowing isn’t an option.
What’s the psychological impact of carrying business debt that most people don’t discuss?
Research shows debt-related financial stress reduces cognitive performance by 13 IQ points—equivalent to chronic sleep deprivation. For business owners, this translates to impaired strategic thinking, reduced creativity, and higher mistake rates. The constant mental burden of payment obligations prevents the clear thinking needed for innovation and growth.
How do I know if my current debt is actually limiting my business potential?
Calculate your debt service coverage ratio: divide cash available for debt payments by required debt payments. Ratios below 1.25 indicate severe constraint. Also, examine opportunity cost: list three growth opportunities you’ve passed on recently. If cash flow concerns influenced those decisions, debt is limiting your potential more than you realize.
What specific steps should I take today to begin eliminating debt?
First, list all debts with balances, rates, and minimum payments. Second, identify which debts you can eliminate within 90 days through focused effort. Third, implement the debt avalanche method—pay minimums on all debts while attacking the highest-rate obligation aggressively. Fourth, establish automated systems to prevent new debt accumulation. Finally, track progress monthly and celebrate milestones to maintain momentum.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.
The unspoken truth: if you have an excellent or at least adequate credit score, the better options you will experience while financing a car. Furthermore, checking your credit score before applying for a loan is highly imperative; it demonstrates your eligibility for this process. However, if your credit score is not satisfactory, buckle down and boost it up to the criteria.
Want to know your credit report? Checkout government authorized websites for free.
Puzzle out your budget
Setting up a budget beforehand is efficient advice; you may have an eyed a good-looking car, but without proper planning and comprehension of financing a car, you may not be able to execute this process successfully.
To map out a budget plan, assess your monthly budget periodically; this emphasizes how much you can afford and allocate for monthly car payments. Nevertheless, financing involves interest and potential fee charges. So, while projecting your budget, do include these factors.
Hit upon your dream car!
The exciting part has arrived! Onto finding your new dream car! The actual question is: how will you acquire it?
To search for a vehicle, you generally have these options.
Look for cars in person.
Shop online through a financial institution by answering a few questions.
Furthermore, several banks offer dedicated dealerships; this simplifies the process as the employee guides you throughout the entire process.
Here comes the financing
Now that you have picked your dream car that coordinates with your budget. This procedure provides several options while dealing with such lenders and online lenders.
Become an expert at car buying
When trying to finance a car successfully, it’s paramount to understand terms like interest, finance, and charge or other potential fees. Moreover, getting familiar with car loan terms is imperative. If you have understood the words clearly, there are fewer chances of being fooled. Furthermore, you can also get a reasonable down payment with your basic knowledge and skills.
Explore financing options
Different companies offer different interest rates, incentives, and financing terms. However, if you have good credit, the dealer might provide you with excellent rates.
Furthermore, if your credit score does not meet the requirement, you must buckle down to research and find the lowest ARP.
Apply for financing
You can request pre-approval when you’ve found the appropriate loan for you. You can apply for many loans to discover which lender offers the best deal, but doing so may harm your credit score.
Make your payments automated
It’s crucial to arrange automatic payments with your lending institution so that you never pay on time. It will keep your lender happy and your credit score from dropping.
How to finance a car in the best possible way?
Financing a car is undoubtedly tricky, but you must decide according to your financial stability and preferences. However, here are the following tips to take out the best deal.
Narrowing down loan terms
You are offered various loan term choices depending on your credit history. Several lenders allow you to pick from different financing terms. In addition, the duration of the loan may be different. For instance, you can take out a loan as short as 36 months or as long as 72 months. But, if you opt for a shorter term, you must pay higher monthly payments, whereas, for a longer duration, your monthly payments are reduced, but you are locked in for a long time.
Online or in-person car financing
Regardless, it depends on your preference. In the past, most people preferred financing through representatives of the respective financial institution or incurring loans from a dealership. Nowadays, online funding has rapidly increased due to convenience.
Whether or not financing a car is an excellent alternative comes down to personal preference and financial position. You can prevent interest payable and financing costs if you pay cash. However, if paying in money involves depleting your funds, you may find yourself stranded in the event of a financial disaster.
Financing may be your best solution if you need a vehicle but don’t have the money on hand. Keep track of how much you’re borrowing versus the car’s worth. If you don’t put down a deposit and instead finance the total price of the vehicle, you may end up paying relatively more than the car is worth.
Financing a car can allow you to take additional benefits of dealer discounts and car manufacturer discounts like 0% financing or rebates. However, to be eligible for these deals, you’ll almost always need to secure a car loan from the automaker’s financial services firm.
Best wishes!
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
