Dave Says

Dear Dave,

My wife has run her own small business for the last three years. I try to be positive, and help whenever I can, but the truth is things aren’t going very well. In fact, the business has never really shown signs of getting off the ground. Over the last several months, we’ve been putting part of what I make at my job into the business to help keep it open. We’ve also taken money out of savings to bolster things, and now our savings account is pretty low. I want to support her, because she loves what she’s doing. But we have three kids, and I make about $60,000 a year. Things have been pretty tight financially for a while. What do you think we should do?

Isaac

Dear Isaac,

I’m an entrepreneur and business owner. So, trust me, I totally understand the excitement and allure that goes along with having your own business. But your own household and its immediate financial responsibilities should come first.

Here’s the thing. If you’re putting other money into a business account, that’s a decent sign you’re not making money in the business. The only money that should go into the business account is income the business creates. So, at this point, I think you and your wife need to sit down together, and have a serious, but gentle, talk about things.

Set aside time—together—and complete a written profit and loss statement on her business. While you’re at it, you also need to make a written household budget. The numbers won’t lie, and it’s going to be your job to be loving and understanding during all this. But the main thing you folks need is to get on the same page financially before the situation gets any worse.

Again, when it comes to the business, put all her expenses on the profit and loss statement in detail. Then, write out what it would take for her to break even each month. I hate that things have turned out this way, Isaac. But with everything that’s been going on in your finances, if she’s not, at a bare minimum, breaking even at this point, then I’m afraid it’s time for her to do something else.

— Dave

* Dave Ramsey is an eight-time national bestselling author, personal finance expert and host of The Ramsey Show. He has appeared on Good Morning America, CBS This Morning, Today, Fox News, CNN, Fox Business and many more. Since 1992, Dave has helped people take control of their money, build wealth and enhance their lives. He also serves as CEO for Ramsey Solutions.