Debt Fear

Business finances and money management intimidate me. The numbers and math themselves do not bother me - it is the amount of detail and responsibility associated with these aspects of business that cause concern. My personal finances already add enough anxiety to my life!

A Pentagon employee, and close friend, recently told me that "the greatest threat to the United States is debt." It is the number one issue that crosses his desk each day. Other friends, primarily living in Kansas, strongly recommend the Dave Ramsey programs to reduce and eliminate personal debt. In today's economy, becoming debt free seems to be becoming a priority to avoid further conflicts. Yet, as potential business entrepreneurs, debt seems unavoidable, even necessary in order to translate an idea into a profit. Though we can obtain legal status to protect our personal finances, the risk of financial failure, loss or debt is daunting. This potential failure is the reason that business finances intimidate me. The idea itself can be paralyzing.

Aside from the fear of financial loss and debt, the other aspects of business money management, such as how to accept cash, credit cards, and checks is understandable. My father, as a dedicated Citibank employee, explained banking principles and credit technologies to me - it took me awhile to understand the technology required by credit cards and all the hidden fees, etc. that business must pay to use. Though it is a complicated process, with processing equipment and transaction fees, its benefits far outweigh these costs, as the article, "The Basics of Money Management" suggested. I have even began to wonder when cash will no longer be used, except as an educational tool for children.

I do have one question from the article, concerning checks. It suggested writing down the customer's driver license number on the check - how does this help protect your business? Does it simply provide a way to track down the customer upon trying to cash a fraudulent check?