Examine your business needs carefully

  • Business move: you should only lease a building for your business when you have a solid track record of success, and only do it with cash, donít add debt to the equation (Photograph by Gerd Altmann/Pixabay)

    Business move: you should only lease a building for your business when you have a solid track record of success, and only do it with cash, donít add debt to the equation (Photograph by Gerd Altmann/Pixabay)


Dear Dave,

I own a small company, and we lease the building we operate from. As an entrepreneur, how do you know when it is time to stop leasing and buy a place of your own?

Peter

Dear Peter,

You should only buy a building when you have solid track record of success, and a really good idea of what your building needs will be. A growing business is always a good thing, but you donít want to focus too much on real estate and not enough on generating revenue and managing that growth intelligently. You would also want to make sure youíre going to be in anything you buy for a good, long while.

Iím a big fan of leasing the first few years after starting your own business. Itís even better if you can work out of your home, but I understand thatís not always practical. Down the road, you can choose to lease with an option to buy, or in the right situation, just buy a building.

Remember, make sure you do it all with cash. Donít add debt to the equation!

ó Dave

Dear Dave,

Life insurance is one of those things I always said I would get around to buying someday, but for various reasons I just havenít done it yet. Is there ever a time when it is too late to get life insurance?

Angie

Dear Angie,

First of all, I only recommend level term life insurance. Itís fairly easy to get until around age 70, depending on your overall health situation. Once you get into your seventies and beyond, however, it can be more difficult to find reasonably priced coverage.

I recommend that most people have 10 to 12 times their annual income in term life insurance. To be honest, though, you really shouldnít need life insurance if youíre 70 or older. At that point, if youíve saved and invested wisely over the years, you can be self-insured. By this, I mean youíve got enough money in savings and investments to cover funeral expenses ó plus enough for a spouse to live on comfortably after youíre gone.

Donít wait any longer, Angie. Take care of this today!

ó Dave

ē Dave Ramsey is CEO of Ramsey Solutions. He has authored seven bestselling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 16 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

You must be registered or signed-in to post comment or to vote.

Published Apr 18, 2020 at 8:00 am (Updated Apr 17, 2020 at 6:54 pm)

Examine your business needs carefully

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon

  • Take Our Poll

    Today's Obituaries

    eMoo Posts