Hi Money Minder,
Getting straight to the point here. We have three small businesses, and we’re drowning in debt. It’s time to turn things around and start saving up some serious cash. With two little ones in tow, we want to spend more quality time with our kids. So, we’re considering getting rid of one or two of our businesses.
Here’s the breakdown of our income sources:
- E-commerce: full-time income for 8 years
- Event facility: 2 years, part-time income
- Food truck: 1 year, could be full-time
Originally, we ran our e-commerce gig from home, then upgraded to a 7000sqft building at a steal of a price. We renovated it from top to bottom and even had space left over to start an event facility. Our food truck, launched just last year, is also bringing in some good dough.
But here’s the kicker – our bills are eating us alive. We’re talking mortgage, car payments, utilities, building mortgage, property taxes, insurance – you name it. It adds up to a whopping $8500 a month. That leaves us with barely anything left over after expenses. We’re slowly chipping away at our $200,000 debt mountain, but living paycheck to paycheck isn’t cutting it.
Our building and event center could fetch a pretty penny if we sold them. We’re eyeing around $350,000 – $400,000, which would wipe out our debt and leave us with some extra savings. Unfortunately, we can’t sell off our e-commerce venture due to some pesky terms of service.
The food truck, on the other hand, is a goldmine. If we sold the building, paid off our debt, we’d still have the food truck as our main income source.
So, Money Minder, what’s your take on this? Should we tough it out, pay off our debts slowly, and wait for the profits to roll in? Or should we cash out, get debt-free, and focus solely on the food truck?
Hope all that rambling makes some sort of sense!
Farewell and thanks for any advice you can offer!
Response from THE MONEY MINDER:
Hello There,
I understand the challenges you are facing with managing three small businesses, family responsibilities, and mounting debts. It’s commendable that you are looking for a way to improve your financial situation and spend more time with your children. From what you’ve shared, it seems like selling your building and the event facility might be a practical solution to get out of debt and start saving up. By doing so, you can eliminate your debts and have some financial cushion to rely on.
Given the profitable nature of your food truck business, focusing on it as your main source of income could be a smart move. With reduced financial obligations, you can devote more time and attention to growing the food truck business further. This streamlined approach might not only help you get rid of debt but also provide you with the work-life balance you desire.
While sticking it out and paying off your debts over time is also a viable option, selling the building and event facility could potentially fast-track your journey to financial stability. It’s essential to weigh the pros and cons of each choice carefully and consider factors like market demand, potential profitability, and personal preferences before making a decision.
Ultimately, the key is to choose the path that aligns best with your financial goals, family commitments, and long-term plans. Remember, it’s crucial to prioritize financial stability and create a sustainable future for yourself and your loved ones. Best of luck with your decision-making process and may you find the right balance between financial freedom and personal fulfillment.
Warm regards,
THE MONEY MINDER
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