I Cleared $35K Worth Of Debt While Making $12 An Hour
In 2009, I lost everything. My career, relationship and home. It's amazing how quickly unemployment can knock you down and change the entire trajectory of your life. I went from earning and saving good money to waking up on my 30th birthday living on my sister's couch.
My credit card debt ballooned to $35,000 and my 802 credit score plummeted into the 500's because I couldn't pay bills. Fast forward five years later and I've not only dug myself out of that hole, but I built a business on the way up. I'm currently a speaker, bestselling author, and financial educator running an internationally recognized brand, but before building a successful business I hit rock bottom.
Here are some money lessons I learned from the struggle:
Always Save for a Rainy Day El Niño
There's no way to predict long-term unemployment, but you should always prepare for it with an emergency fund. I lived well below my means to save money before losing my job. Thankfully, I had some savings to live on.
My first "real" job at 21 was as a teacher's assistant. It only paid $12 per hour, so I lived with my parents to stack coins. I found a modest yet affordable rental in New Jersey with a roommate (my sister), that cost just $1100/month, $550 per person including utilities. As my income steadily increased, I kept the same standard of living and a strict bi-weekly budget. I used envelopes filled with cash to divide my pay into categories: bills, savings, entertainment and grooming.
I lived off one paycheck and saved the other.
By 25, I had $40,000 saved in cash.
Live Richer Lesson #1:
Nothing in life is guaranteed, so establishing good saving habits no matter how much you make is invaluable. Downgrade your life, if necessary. This could mean cutting cable, getting a roommate or keeping your gel manicure on for a few extra weeks.
How To Live This Lesson Now:
Begin to set aside a few dollars from each paycheck in a savings account. Don't have the discipline? Start with Digit. This free resource studies your financial moves and automatically transfers money from your bank account to your Digit Account. They will send you daily, fun texts with updates of your balances and transfers. You can choose to save more, pause savings or withdrawal your money via text as well. Your money is FDIC insured and they have a no-overdraft guarantee. Oh, and they do it for free!
Nothing Good Comes Easy
Before joblessness, my savings game was on point, but my investment game was lacking. I made one crucial mistake that put me in a world of debt and made unemployment overwhelming. At 27, I asked a wealthy friend of mine to teach me how to invest and he pitched me a genius plan. We would buy high-end clothing in New York and ship it to Paris to sell in one of his stores.
My return was supposed to be $1,200 per week for two years. Yup, you read that right. I thought I was going to make $62,400 per year shipping clothes across the pond. I was so excited about making racks on racks that I applied for new credit cards and took out cash advances totaling $20,000.
We sent our first shipment to Paris then I never heard from him or received any money. It devastated me at the time, but I can appreciate the lesson. First, be careful who you trust. Second, if a plan sounds too good to be true, believe it. Last, hard work and passion are what will pay off tenfold, not a get rich quick scheme.
Live Richer Lesson #2:
There's no such thing as easy money. When my "friend" aka The Thief shared his get-rich-quick scheme with me, I should have ran for the hills. Looking back on it, it didn't make sense. Rarely in life do you make a ton of money without knowledge and work.
How To Live This Lesson Now:
If you're interested in investing, you first have to invest in knowledge. Two financial books to help you get started are: The Richest Man in Babylon by George Clason, Stock Market Investing Mini Lessons For Beginners: A starter guide for beginner investors by Mabel Nunez.
Odd Jobs Add Up
Losing my job and the implications of bad investing had me down and out. At 30, I was directionless and living off the little savings I had left. I didn't know how to start over after losing so much. Back when I was a teacher, staff members took notice of my money management skills and looked to me as a financial resource.
Looking for something to keep me busy, I began volunteering at several nonprofits teaching financial education. I networked like my life depended on it and asked nonprofits to refer me to other organizations for paid opportunities. Since I couldn't find 9 to 5 work, I did a bunch of side hustles to make money. I took on one-on-one financial consultations, babysitting and tutoring.
Sidebar: Don't discount volunteering. I met my first clients for The Budgetnista by volunteering. By combining volunteering and sharing me in action on social media, I was able secure a new client each time I spoke and posted myself speaking online. In the beginning, 80% of my business came from the posts I shared on Facebook. So use your social media network to showcase your skills and increase your income.
Live Richer Lesson #3:
If there's no place for you in the workforce, make your own way. Use your experience and passions to offer a product or service that someone finds valuable. Hustle even if you have a full-time job. Multiple streams of income will lead to financial security.
How To Live This Lesson Now:
- Use Your Degree. If you have the education, put it to use. You can charge more money for a service when you're an expert in a field. Think about how you can shape your education into an extra source of income.
- Do What You Do For a Living. You can hit the ground running with your side hustle if you have work experience in the industry. There's no learning curve and you have a resume that proves you know what you're doing.
- Activate Your Passion. Start charging for things you already do for free. You already have an established clientele who like your work and you can use them to spread the word.
- Negotiate a Raise. Start to collect all of the amazing value you bring to your job. Put it together in a file. Make sure you monetize your value. Example: The decision you made to do _________ is saving the company $10,000/year.
Take Ownership of Your Situation
At first, I didn't want to face my credit card debt from the bad investment even when I started making money again. I felt paying any more than the minimum payment was admission of guilt and I didn't want to take full responsibility.
Only after owning the mistake and forgiving myself was I able to start crushing the debt. I transferred my credit card debt to cards that offered introductory 0% interest rates, so the money I paid largely went to principal instead of interest. (Use Magnify Money to help you find the best balance transfer cards.) If I had continued to sit back without taking ownership, interest would have increased my debt exponentially.
Since I've been through the struggle, I understand how disheartening financial missteps can be. You feel destitute, desperate and hopeless, but there is a way out if you face the situation. Open the bills, pick up the phone for collectors and form a plan. Sure, it won't happen overnight, but you have the power to change your situation.
Live Richer Lesson #4:
Have you made financial mistakes in the past? Are you currently making financial mistakes? Will you probably make financial mistakes in the future? Yes?! Well, so did Will Smith, Rihanna, Suze Orman, and me!
Sometimes you are unable to move forward financially, not because you don't make enough money, not because you don't have the resources, and not because your situation is un-repairable. The truth is, you have yet to get over your financial mistakes if you want to move onto greener pastures (pun intended). Financial forgiveness is one of the first keys to becoming financially healthy.
How To Live This Lesson Now:
- Admit to Yourself and Take Ownership. Confess; say "I messed up when I __________". Feel free to substitute the word "messed" with your verb of choice.
- Identify the What and Why (Be Very Specific). Take a break from beating yourself up for a minute and clearly identify your mistake and why you made it.
- Tell Someone You Trust. OK, so this may be a tough for you, but tell a trusted confidant. Doing so will allow you to let go of the shame, begin to forgive yourself, and ultimately work on a solution.
- Focus on a Solution. So the truth is out, and it's time that you focus on what IS, verses on what ISN'T.
- Plan, Then Work the Plan. Once you've drafted your list of possible solutions, pick one and begin crafting a plan. Not sure how to start or what to do?
Using these four lessons, I now run a successful business, and no longer struggle financially.
Tiffany Aliche, better known as "The Budgetnista", is America's favorite financial educator and she's here to answer your money questions.
Featured image by Getty Images
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ItGirl 100 Honors Black Women Who Create Culture & Put On For Their Cities
As they say, create the change you want to see in this world, besties. That’s why xoNecole linked up with Hyundai for the inaugural ItGirl 100 List, a celebration of 100 Genzennial women who aren’t afraid to pull up their own seats to the table. Across regions and industries, these women embody the essence of discovering self-value through purpose, honey! They're fierce, they’re ultra-creative, and we know they make their cities proud.
VIEW THE FULL ITGIRL 100 LIST HERE.
Don’t forget to also check out the ItGirl Directory, featuring 50 Black-woman-owned marketing and branding agencies, photographers and videographers, publicists, and more.
THE ITGIRL MEMO
I. An ItGirl puts on for her city and masters her self-worth through purpose.
II. An ItGirl celebrates all the things that make her unique.
III. An ItGirl empowers others to become the best versions of themselves.
IV. An ItGirl leads by example, inspiring others through her actions and integrity.
V. An ItGirl paves the way for authenticity and diversity in all aspects of life.
VI. An ItGirl uses the power of her voice to advocate for positive change in the world.
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ItGirl 100: Get To Know Some Of The Most Inspiring And Empowering Women On Our List
The ItGirl 100 List, in partnership with Hyundai, is a celebration of 100 Black women who aren’t afraid to pull up their own seats to the table.
We often see lists featuring amazing women who are seasoned in this thing called life, and our ItGirl 100 List gives flowers to the people they’ve passed the torch to: young millennial and Gen Z women who are innovating and disrupting in today’s world of advancement.
xoNecole has partnered with Hyundai for its inaugural ItGirl 100 List to give these women their flowers today. It’s a celebration of 100 Genzennial women who have built their own tables, launched new businesses, and redefined what it truly means to be blessed, booked, and busy.
Here’s a snapshot of fun facts from a few of the women listed on the ItGirl 100, representing the East, West, Midwest, and South:
EAST
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DJ 9AM: DJ & Curator
Representing: Brooklyn
Ultimate ItGirl Song: "On My Mama" by Victoria Monét
Favorite OG It Girl: Nia Long
Zodiac Big Three: Cancer Sun, Taurus Moon, Pisces Rising
Favoring open-format, multi-genre mixes, this DJ has created a winning reputation for rocking a crowd with seamless transitions and selections, always representing Southwest musical and cultural influences.
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Tiffany James, Founder, Modern BLK Girl
Representing:Brooklyn
Ultimate ItGirl Song: "Lucky Girl" by Carlina
Favorite OG It Girl:Naomi Campbell
Zodiac Big Three: Sagittarius Sun, Leo Moon, Virgo Rising
Modern BLK Girl is one of the leading investment groups among women of color, and the founder serves as an avid investor, community builder, and advocate. Tiffany James is also a mentor, utilizing her unique combination of financial and fashion expertise.
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Kat Mateo, Casting Director
Representing: New Jersey
Ultimate ItGirl Song: "Princess Going Digital" by Amaarae
Favorite OG It Girl: Kelis, Eve, Lil Kim
Zodiac Big Three: Aries Sun, Cancer Moon, Cancer Rising
Thriving as a casting director and stylist, Kat Mateo offers a unique point of view that has shaped New York Fashion Week shows, ad campaigns, and editorials. She has also been a major contributor to cultural conversations related to fashion and inclusivity.
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Denise Stephanie Hewitt, Photographer
Representing: Brooklyn
Ultimate ItGirl Song: "Experience" by Victoria Monét
Favorite OG It Girl: Hannah Montana
Zodiac Big Three: Taurus Sun, Aquarius Moon, Aquarius Rising
This Gordon Parks Foundation scholar is a full-time student who has been working to expand her freelance career in photography. Denise is also been featured among Essence'sinaugural list of "Top 10 Creators Under 30," for her unique aesthetics and perceptions through her art.
WEST
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Nayamka Roberts-Smith, Aesthetician
Representing: Los Angeles
Ultimate ItGirl Song: "Tomorrow 2" by GloRilla & Cardi B
Favorite OG It Girl: Meagan Good
Zodiac Big Three: Sagittarius Sun, Leo Moon, Capricorn Rising
Nayamka Roberts-Smith is an award-winning professional in the skincare industry and serves as an educator, offering knowledge on beauty culture. She also is a well-sought-after speaker on beauty and women’s issues, with a following of more than 1 million on social.
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Desiree L. Talley, Esq., Vice President, Legal & Business Affairs, Revolt TV
Representing: Los Angeles
Ultimate ItGirl Song: "Nice" by The Carters
Favorite OG It Girl: Issa Rae
Zodiac Big Three: Cancer Sun, Scorpio Moon, Cancer Rising
An attorney and storyteller, Desiree L. Talley meshes relatability with her legal smarts for the culture. She advocates for cultural advancement and societal change through her POPLAW Podcast while balancing her executive duties at Revolt TV.
Marley Rae
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Marley Rae, Organizer, WalkGood
Representing: Los Angeles
Ultimate ItGirl Song: "Nice For What" by Drake
Favorite OG It Girl: Mariah Carey
Zodiac Big Three: Capricorn Sun, Taurus Moon, Leo Rising
Marley Rae is a Nike Athlete, certified yoga instructor, COO, and Director of Health and Wellness for WalkGood LA, a family-founded non-profit organization. She is dedicated to fostering understanding and care in local and global communities.
MIDWEST
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Shawnee Dez
Representing: Chicago
Ultimate ItGirl Song: "FreeBody Freestyle" by Shawnee Dez
Favorite OG It Girl: Toni Morrison
Zodiac Big Three: Cancer Sun, Aquarius Moon, Cancer Rising
Shawnee Dez is an artist who's all about captivating her audience through encouragement and empowerment. Her music features fluid harmonic layering, live instrumentation fused with digital production, and her unique multi-talented voice in an alto melodic tone.
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Bianca Pastel, Visual Artist
Representing: Chicago
Ultimate ItGirl Song: Anything by Whitney Houston
Favorite OG It Girl: Grace Jones
Zodiac Big Three: Taurus Sun, Leo Moon, Sagittarius Rising
Bianca Pastel's artistic portfolio includes fine art, illustrations, and animation, and she's worked with clients including Disney Pixar, and the NFL, to name a few. Her focus is "empowering the experience of being a Black child and dealing with mental health issues."
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Donyale Walton, Founder, Hoop Mobb
Representing: Detroit
Ultimate ItGirl Song: "Yeah I Said It" by Rihanna
Favorite OG It Girl: Aaliyah
Zodiac Big Three: Virgo Sun, Libra Moon, Capricorn Rising
Donyale Walton's brand Hoop Mobb, celebrates the Black and Brown fashion and cultural impact and presence of hoop earrings. It's grown to earn more than seven figures in annual revenue and a nationwide community of loyal consumers.
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Ticara Devone, Content Creator
Representing: Chicago
Ultimate ItGirl Song: "She's a Bitch" by Missy Elliott
Favorite OG It Girl: Ananda Lewis
The Zodiac Big Three: Libra Sun, Taurus Moon, Virgo Rising
A trusted sneaker enthusiast and content creator, Ticara Devone uses dynamic storytelling to hold space for others with a passion for sneakers. A published writer, she’s worked with brands including Nike and Footlocker and inspires us all by ensuring women are vocal and seen in the multi-billion dollar shoe space.
SOUTH
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AllyiahsFace, Content Creator
Representing: Atlanta
Ultimate ItGirl Song: "Go Off" Doja Cat
Favorite OG It Girl: Gabrielle Union and Halle Berry
Zodiac Big Three: Gemini Sun, Leo Moon, Scorpio Rising
AllyiahsFace's YouTube channel has more than 830,000 subscribers, and she's been hitting the ground running since 2015. Her content creation, which centers on beauty, fashion, and lifestyle, has led to a lucrative career and drawn a close-knit social and real-life community to view and be inspired.
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Jaycina, Executive Director, Tender
Representing: Atlanta
Ultimate ItGirl Song: "All I Got" by Amel Larrieux
Favorite OG It Girl:Tracee Ellis Ross
Zodiac Big Three: Leo Sun, Sagittarius Moon, Sagittarius Rising
Jaycina is a signed model with a nonprofit that works to provide support and community for single mothers in Atlanta. She's also appeared in campaigns for brands including Fenty and GAP as well as features in all your favorite magazines and on billboards across the country.
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Asha Christian, Founder, Coily App
Representing: Atlanta
Ultimate ItGirl Song: "It's My Life" by Mariah Carey
Favorite OG It Girl: Toni Childs (Girlfriends)
Zodiac Big Three: Sagittarius Sun, Leo Moon, Leo Rising
Asha Christian created Coily to provide beauty recommendations utilizing social data. It offers a more personalized, AI-driven experience for users and part of her mission is to provide solutions related to diversity and put the focus back on the consumer. Meshing tech and culture, Christian is innovating with options that exemplify the Black girl magic needed in tech.
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Featured image by FG Trade/Getty