Husband Business Dying, Four Kids at Home...What To Do?
It's not hopeless for Paige, supporting a failing business and 4 kids ... but it's starting to feel that way.
QUESTION: Paige has an annual income of $50,000. She is remarried and has 4 kids. Her husband’s business is floundering and now they’re basically living off of Paige’s income. She’s also paying for his business. They have some debt and are facing foreclosure. Paige doesn’t know where to start.
ANSWER: You and your husband have to get on the same page financially. You need to do a profit and loss statement – together. A profit and loss statement just tells you the expenses that come in minus the expenses that go out. If you are putting other money into that account, that’s a clue that you’re not making money on the business. Put his rent, supplies and any other business expenses on the profit and loss list and write out – step by step – what it will take for you to break even in this business each month. If you don’t break even, do something else. Don’t put any more money into his separate checking account except the income he creates. Use your income to get current on your house payments and attack any other debt.