My financial discipline of recording every cent earned or spent worked until the mid 1980s when my (now ex/late) husband suddenly resigned from a director's position to start his own business.
Neither of us had a clue about how to start or run a business. Like many ADDers, putting together a business plan was a foreign concept and budgeting for a business was far too complicated.
Cashflow? Money in the bank - spend it! Anything we came up with would have been a giant thumbsuck.
Let's start with a Good Move
After the birth of our second son, I studied bookkeeping as I thought it would be easier to get a part time job doing accounts rather than lab work which I had done previously. I wanted to be there for my boys at least part time. Fortunately this was a really good decision and has carried me through many lean times.
Bad Move 1
Based on my husband's previous employment income, the bank had granted us an Access Mortgage Bond which we were able to draw on for anything we needed / wanted.
Bad Move 2
Overdrafts and credit cards were freely offered and accepted.
Bad Move 3
Of course we drew his fairly substantial pension in full. We would always be able to start saving again. You seldom do especially if you are self employed.
Bad Move 4
We had not learned the rule of paying yourself first and ensuring that we were financially secure. For the 1st 4 years and periodically thereafter I did not draw a salary.
Bad Move 5
We broke the cardinal rule of not robbing Peter to pay Paul.
• Using one credit card to pay off another
• Using our savings to pay business creditors
• Maxing out personal overdrafts
As with most new businesses the expenses grew faster than our income. If truth be told, there was very, very little income. My ex had to take an engineering contracting position which fortunately paid well and I worked mornings doing bookkeeping for a construction company.
It was a painful and expensive experience but we survived. Although never diagnosed, I believe my ex husband also had ADHD.
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