Page 62 - The Bootstrapper Bible

ChangeThis KEEPING SCORE Every month, you need to tally up the numbers you care about. Write them down. Share them with your spouse and board of advisers. Here they are: Cash in this month: Cash out this month: Money in the bank right now: At the current rate, how many months until no cash left: ONE LAST THING Debt. Debt is so seductive. You can lease computers. Use your credit cards. Mortgage your house. Borrow from relatives. Should you do it? Let me break the debt down into two groups: professional and family. Professional debt is expensive. Eighteen percent on credit cards and leases, less on a mort- gage. Expensive debt carries an interest expense that can make the problem youʼre trying to solve even worse. Basically, if youʼre borrowing money to pay the interest on borrowed money, youʼre dead. My rule of thumb is that debt is bad. Available credit, on the other hand, is good. If youʼve got a great opportunity and need access to debt, you want to be able to know itʼs available. But living with debt regularly will enrich everyone at the banks long before it will enrich you. | iss. 6.01 | i | U | X | + | h 62/103 f