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Old 3rd July 2005 | Show parent
Lives for gear
PlugHead's Avatar

I don't think I'm the only one, but with running a business, you also have a debtload: whether or not it's manageable is up to you. I feel that sometimes you have to make some seemingly unwise decisions to get you to the next level, and surely if your assets far outweigh your debt, then you're in a fine position, so long as YOU HAVE WORK. i would not be able to have a studio at all if I didn't go into debt over gear at one point - I think it's par for the course. Better if you have 'loans' or a line of credit than with a CC - rates are way lower, and you can finance your purchases much easier. That said, money that isn't actually yours is VERY EASY TO SPEND, so beware. I was over 10 large in debt about 18 months ago, and had to stop any purchasing till I got that completely paid off, but it took a year.

IME, I wouldn't have a studio if I didn't go into debt at one point - I think a bit more conservatively nowadays, and am thankful I don't hold much debt at all, but - unless you are catering only to "your own needs", and don't have to have critical items for 'clients', or the appropriate space, you have to expect some give and take with borrowing/debtload. How do you finance your home? Did you pay in cash? Unless you're extremely rich, or waited till you had the bucketload of cash, most others finance, which is what many do with their 'business' as well. Just make sure your debtload is serviceable, and you don't go too far into areas which will see slow, to no returns...

My .02 cents (with interest @ prime +2% is .0202 cents)