Ryan calls in to the show because he is unsure what Baby-Step he is in. He believes himself to be in Baby-Step 2 but is that possible being a business owner. He has some debt that is tied to the business, primarily real estate and supplies. With the company and other personal sources of income, Ryan pulls in close to $400,000 a year.
The team works out that Ryan owns this debt because he did sign for it, but that’s not a bad thing. They explain that he is in Baby-Step 2 and should add this to his debt snowball. The smallest debt right now is his home, so it’ll be the first to get rid of it, but this process works with his business. The next smallest debt then is his business expenses, and you continue the process.
Next, Ryan needs to plan the excess because after clearing his debt, he needs to invest. He should be ready to invest in new highers, better supplies advertising anything to push his business to the next level. Ryan believes this is where he is stuck between this and the last step. The team explains that once he pays off the amounts set aside for his debt, it will be time to put aside money into those investments.
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