Eliminate Personal Debt w/ Personal Finance Coach

Posted on February 19, 2017


Starting a company was an amazing experience, but it was largely possible for me because I was able to dip into my long term savings and rack up some credit card debt. As I’m planning my next adventures I know I need to reduce my financial obligations.

The shareholders have always been a fantastic accountability mechanism but there is something taboo about sharing personal finances. I admit that I am embarrassed by my low credit score and I’m reluctant to discuss the situation publicly.

Luckily, within the ranks of the shareholders is an expert on personal finance: Lillian Karabaic. She launched Oh My Dollar! in order to help people get control of their money and is passionate about making financial well-being a reality for anyone. She hosts a weekly radio show about money and I saw her give a talk in a Ziggy Stardust costume about “adding glitter” to your life as a slogan for financial responsibility.

Working with Lillian I’ll identify where the values of KmikeyM and money intersect and create clear goals that make sense for my personal (and shareholder) priorities. We’ll create a plan and start working on debt reduction while keeping an eye on the future. And best of all we can share progress with the shareholders in the form of pretty graphs since Lillian specializes in data visualization.

No - 314.0

GeneM 💯☕️ 106.0
ritchey ☕️💼 81.0
Robby Russell 65.0
Matthew Spencer ☕️ 62.0

Past Discussion

Douglas Dollars 💯 (415.0 shares, voted yes)
Debt is poison and limits your options!
freddy (6.0 shares, voted yes)
I think it's a great idea to tackle this publicly and Lillian is a terrific coach...do it!
Josh Berezin ☕️💯 (655.54297 shares)
What's the "no" case, here? What is the cost or opportunity cost? Are you just putting this out there so that we vote "yes" and hold you accountable?
Mike Merrill
First, maybe debt elimination shouldn't be a goal? Just focus on projects, pay the bills, and carry on. Debt elimination will reduce operating capital which will have an impact on projects. Also, this is a specific plan which reduces transparency with shareholders. I'll be sharing specifics with Lillian, but onlybabstract progress with shareholders. I expect most shareholders will agree but as this is a pretty big undertaking I thought it should be approved.
Mike Merrill
She has agreed to be compensated using the option pool which also should be noted.
wandersean 💯☕ (104.001 shares)
If I'm voting on whether to eliminate out-of-control credit card debt, then I'm 100% yes. If I'm voting on whether to use a financial coach, then I'm somewhat less sure. Agree with Josh's question: what is the cost involved? If I'm voting on whether shareholders should receive updates on debt reduction progress (%, not $), I think this is a great idea. So, mostly yes, I think? But there seem to be a few things combined in this question.
Curt ☕️💼 (72.0 shares, voted yes)
Debt reduction will reduce capital in the short-term, but should increase available capital in the long-term.
awmahan 💼☕️ (63.0 shares)
How does your mortgage figure into the equation? That seems like a hard one to eliminate.
beernerd (5.0 shares, voted yes)
Starting a business ruined my credit, too. #NoRegrets
Thomas King (33.0 shares)
I'm with Josh, trying to determine the arguments against. Can you consider and report back on the kinds of activities/opportunities that you will cut out of your life as you address debt? Is there a penny wise / pound foolish aspect to this proposal, and if so, how do you propose to deal with that risk? I'm all for reducing debt but as a shareholder I want to be comfortable that long-term, strategic thinking won't be hindered in the process.
ritchey ☕️💼 (81.0 shares, voted no)
I fully support working toward becoming debt-free, but the question others have raised is legitimate: What's the point of the coach? It seems like all you need to know is that you're likely paying around 20% interest on your credit card debt. No investment (savings, stocks, etc.) will ever, ever get you that kind of return. Therefore, you need to pull all your money out of stocks and savings and put it toward paying off your debts (starting with the highest interest rates). Until you do so, your investments are worthless. Do you really need someone to guide you?
ritchey ☕️💼 (81.0 shares, voted no)
^^^^^^^^^ comment by AR (not MR)
Matthew Spencer ☕️ (62.0 shares, voted no)
I’m drawn to vote no by A Ritchey’s argument.