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Keep Costs Low

Whether you are running a business or a small family, the best thing that you can do is keep the cost of running them as low as you can without sacrificing the basic needs. The reason is you can run better service or manage your family well with minimal cost and downsizing the risk of debt.

By cutting down the expenses, you have minimized the chance of falling into downward spiral financially. The number one reason why most businesses and people get into debt is high costs of running them.

Debt can be dangerous for you mentally and emotionally. It will take several years to start to pay off debt and in that period you would have paid a lot more in interest which could have been invested for a better return.

The formula is simple. Cut down the cost and you will have bigger margin of safety just in case things go wrong but we don't follow this because of lack of knowledge and self control. It can be tempting to try the new food or to get that new machine but it will all fade off if you make every single decision based on your purpose.

Remind yourself daily before making a purchase. Will it help to increase my income? If you answered yes, then go for it and if you answered no, don't look at it again.

Think Small
T. Mohanadasan

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