The Budgetnista Tiffany Aliche Reveals How Her Credit Score Went From 547 To 800+
As women in and out of the workforce, we have made tremendous strides. We've conquered everything from becoming our bosses to leadership roles where we've learned how to manage our own teams and work within the parameters of a company's budget. Yet, there's one thing that we have quite mastered yet--managing our own money.
That's right, we live in a time where we spend way more than we make--pushing aside bills and other necessities for that limited edition designer bag, or swiping our credit card every chance that we get, thus putting ourselves in more debt and sitting on a pathetic credit score that will do more harm than we can imagine.
Learning financial literacy is very important, and practicing good financial behavior can help you live the type of life you desire. Yet women of color and millennials typically overlook their dwindling bank accounts and do not educate themselves. It is only when we experience a financial hardship that we take a closer look at our finances and try to make improvements. Sometimes when this happens, we have dug ourselves in a low ditch, and while it is not impossible to get out of it, it is definitely harder.
I recently sat down with Tiffany Aliche, who is a financial guru and well-known as The Budgetnista to discuss how she went from having a 547 credit score to a score over 800 (she also saved $40,000 when she was only making $39,000 a year!), and her tips on saving, budgeting, and on building wealth:
You Can Easily Lose 40 Credit Score Points In Just One Week
At the age of 23, I had a credit score of over 800, which is an A+. A few years later, the recession hit. I lost my job, and I couldn't afford the mortgage or pay my bills. Since I wasn't paying my bills, my credit score dropped. People don't understand that your credit score is like your GPA for how you deal with money. When you don't pay your bills, your GPA drops. My credit score quickly dropped from 800 to 547 which is like a D-.
One thing that people don't realize is that 35% of your credit score is your payment history - so in other words it is contingent upon if you pay what you are supposed to pay. To rebuild my credit score, I worked hard to pay off credit cards in full at one time. When you do, it makes your credit score jump like Jordan. If you just pay the minimum amount on your bills, your credit score will do a slow climb. But if you want to make your credit score jump like Jordan, pay off a small amount of your credit card each month. I don't know why, but credit card companies care less about the amount you pay, and more about your habit in paying.
So if you pay off something in full, they are wowed. It doesn't matter if you have $8 on the card, if you pay it in full, it will make a difference. So when I figured this out, I put Netflix on one of my credit cards that didn't have a balance, and I paid it in full every month. Netflix would charge my card $8 bucks, and then I would pay them $8 bucks each month and I would see my score go up. So then I decided to do two cards like that. I had Netflix on one, and my gym membership for $20 bucks on the other. So every month, I was paying off 2 cards in full. And within a year and a half, I went from 547 to 750, which is a solid B/B+.
You Can Inherit Good Credit From Other People
To build good credit, you can be an authorized user on someone's card that has great credit. Basically what that means is that they can add you on their card as an authorized user, and you can inherit their good behavior because whenever they pay their bill, it will reflect positively on you. The primary credit card holder doesn't have to actually give you the card either - although as an authorized user you could get one.
Even if the primary credit card holder decides to stop paying their bill, it won't mess up your credit as an authorized user. That's the beauty in it - you only inherit the good credit, not the bad.
You Can Get A Secured Card When You're Young To Build Credit
When you are young, it is unlikely that you will be able to get a regular credit card because you probably will have no credit history. No credit history in the credit world is just like having bad credit or being considered a bad driver because you have no driving history. You haven't proven yourself.
To start building up your good reputation, go to your bank and ask if you can apply for secured card. A secured card is like a credit card with training wheels. The way it works, you give a bank anywhere from $300-$600 and they place it in a savings account for you. Then they give you a credit card that has that amount on it as your credit limit - so basically you are borrowing from yourself. So if you don't pay your credit card, it will take away the money that you have in your savings account. If you treat this card right, and you pay your bills when you should, they will take the secured card away and make it a regular credit card.
You Should Have At Least 3 Bank Accounts For Your Money
I recommend having at least three accounts - one just for your bills, another for spending, and then the third for savings. The account for spending should be attached to your debit card, and then the account for your bills and the account for your savings should not be attached to your debit card.
If you have the direct deposit option through your job, have your money automatically transferred to each account. Your employer may not tell you, but you can have more than one account connected with direct deposit.
Having An Online Bank Is A Must
I recommend having an online bank for your savings account because it makes your money inconvenient, and inconvenient money gets saved because it is not easily accessible. If you want to rate an online bank, go to magnifymoney.com and you can check out reviews and information on the bank.
I always tell people to have a regular bank for ease of use, an online bank for savings, and then a credit union. Credit unions are great because they will give you the best interest rates. Most credit unions are nonprofit, which means the interest that they ask you to pay is just to keep their lights on so the interest rates are lower than other banks.
Ask About Your 401K Day One Of The Job
On your first day at work, before you get into the swing of things, ask about 401K matching. Better yet, ask about this during the interview and see if the company offers it. For your retirement, many companies will match up to a certain percentage of your income that you deduct from your paycheck for retirement. So if you put 3% of our paycheck down for retirement, your company may match it. With some companies they tell you that you have to wait to be vested (usually 30 days or more) to reap this benefit, but you may can start it early if you ask.
In College, Stay Away From Private Loans Because They Are The Devil
If you get a private loan and miss one payment, you immediately fall into default. Default is on the same level as foreclosure or bankruptcy and we all know bankruptcy is like having a big, black F on your credit report. If you fall into default, it will prevent you from getting a car, an apartment - you name it. Also with a private loan, you will likely have to have a co-signer, so if you miss a payment and fall into default then your cosigner is also affected.
If you get a federal loan, you have to miss nine payments to get you to the default stage. One other thing about federal versus private loans is if you fall into a financial hardship, the federal loans will help you out and will be more understanding. But with a private loan, somebody could die and the money would still be due - they would just reach out to the consigner for the money.
You Can Get Paid To Shop
When you are in school, began saving early and get in the UPromise program. It is free to use! What I love most about it is that you can go online and sign up and then your register all of your debit and credit cards, and every time you use your registered debit or credit card at a partner store you will get cash back for your student loans. With UPromise, if you don't use it for your student loans, you can ask them to just cut you a check.
Also, whether or not you are in school, sign up for Ebates. Whenever you want to buy something online, type the store name in Ebates (it could be Target, Groupon, or whatever), and then Ebates will take you to their site and will record how much you buy and give you cash back.
Learn How To Live Off Less Than You Make
After you graduate from college, live a simple life. That can be getting a roommate or getting a used car, just learn how to live simply. If you don't, you will be forced to work a job you probably hate just to make enough money to afford your lifestyle.
Now that you know some of the secrets on budgeting, saving, and building wealth, implement these steps today and hold yourself accountable. An easy way to learn more financial tips and hold yourself accountable is through Tiffany's Live Richer Challenge and through her book The One Week Budget. In her book, she teaches us how to make responsible, financial decisions, while living a life that we desire. The Live Richer Challenge is a FREE, online financial challenge that can help you achieve your financial goals in just 22 days.
Tiffany created this program last year, and her goal was to have 10,000 women signed up and to help them master their money effectively and efficiently. In the end 20,000 people signed up and collectively all of the women saved 4 million dollars and were able to pay off over half a million dollars of debt together.
Women of color make up 70% of buying decisions, so it is time to change our mindset and change our financial situations. Let's start today and build a culture of wealth!
Related Post: 4 Lessons I Learned After Climbing Out Of $35,000 Debt While Making $12 An Hour
- I Paid Off $40K of Debt in 18 Months - xoNecole: Women's Interest, Love, Wellness, Beauty ›
- Ways To Rebuild Credit Score: 7 Strategies - xoNecole: Women's Interest, Love, Wellness, Beauty ›
- How to Fix Your Credit - xoNecole: Women's Interest, Love, Wellness, Beauty ›
- How To Buy A House With Bad Credit - xoNecole: Women's Interest, Love, Wellness, Beauty ›
Brittani Hunter is a proud PVAMU alumni and the founder of The Mogul Millennial, a business and career platform for Black Millennials. Meet Brittani on Twitter and on the Gram at @BrittaniLHunter and @mogulmillennial.
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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From Toxic Traits To Transformative Growth: Understanding Evolved Vs. Unevolved Zodiac Signs
Explore your sign’s 2024 horoscope predictions to learn what is in store for you this year in love, career, and more. Check out the love compatibility of each sign to learn more about zodiac pairings and all things compatibility.
Have you ever heard someone talk about a certain zodiac sign and wondered why your experience of that particular sign has been completely different? We have all heard about the notorious Gemini Man or Virgo Man being a difficult partner to have in love, but does this apply to all Geminis and all Virgos? Well, this is where the discussion of evolved signs vs. unevolved signs comes in. It’s the idea that, while some toxic or challenging traits are more prevalent in certain signs, it also depends on the individual at hand and on whether or not they have evolved in life.
Evolved vs. Unevolved Signs: A Guide
Astrology is life-changing not only because it allows you to learn more about yourself, but it also allows you to see certain behaviors or traits in yourself, and change them if you are not happy with the way they manifest in your life. To be evolved means to learn and develop. In order to tell whether you are dealing with an evolved sign or an unevolved sign, look at the way they navigate their strengths and weaknesses. We are all predisposed to certain behaviors aligned with our zodiac sign; it’s how you grow from your experiences rather than what you accept as a defining characteristic of who you are.
Evolved signs have done the inner work, unevolved signs make excuses for their behavior.
When we are talking about evolved zodiac signs, we are talking about the Virgo who appreciates progress more than perfection, the Libra who trusts that they can stick to a decision rather than accepting they are incapable of making the best one, and the Aries who takes intentional action rather than an impulsive one. It’s those people you meet and they make you change your perspective on a certain sign you may have had a negative experience with in the past. An unevolved sign, however, is the Aquarius who isolates rather than expresses how they are feeling, the Scorpio who lets their jealousy get the best of them rather than trusting their connections, and the Leo who puts their ego before anything else.
The good news is that if you feel you are living a more unevolved version of your zodiac sign, you can change this by first addressing where you may be self-sabotaging, and where you can highlight more of your strengths. Healing from past traumas, seeking a therapist or astrologer, or overall making your well-being more of a priority all will benefit. When you are feeling good within, you attract more experiences to you to where you can be that evolved version of yourself rather than entertain old habits or ways of relating that don’t serve you.
It takes work, but the more you tap into the evolved version of yourself and strengthen this part of you, the less you will revert to your old ways or attract those same types of toxic or unevolved people towards you.
So, how do you know which side of the coin you are dealing with or are yourself? Read below to find out more about the traits and characteristics of the evolved vs. unevolved signs of the zodiac.
EVOLVED ARIES
- Confident
- Methodical
- Disciplined
- Leader
- Energetic
UNEVOLVED ARIES
- Aggressive
- Short-tempered
- Reckless
- Arrogant
- Impulsive
You’ll know whether you are dealing with an evolved Aries versus an unevolved Aries through the way they communicate and approach others. If they are confident and encouraging, you are dealing with an evolved Aries who is comfortable with who they are but also doesn't feel the need to force their energy on you. Unevolved Aries will make you take a step back, evolved Aries will make you want more. Aries’ strengths are that they are bold and assertive, but an unevolved Aries tends to create more disagreements or challenges with others in the process.
EVOLVED TAURUS
- Abundance-mindset
- Grounded
- Generous
- Compassionate
- Trustworthy
UNEVOLVED TAURUS
- Materialistic
- Stubborn
- Lazy
- Vengeful
- Envious
An evolved Taurus versus an unevolved Taurus can be differentiated by the person who has stability or who has goals in life that they share with you and are working towards. The unevolved Taurus you will most likely find on the couch, demanding that you give them what they need at the same time. Unevolved Tauruses tend to show traits of envy or jealousy when you are explaining a recent win to them. An evolved Taurus will be the first person you want to go to with the good news, and they are a big support and secure person to their loved ones.
EVOLVED GEMINI
- Communicative
- Curious
- Creative
- Innovative
- Fun
UNEVOLVED GEMINI
- Confusing
- Chaotic
- Disorganized
- Bored
- Unpredictable
An evolved Gemini will have you feeling understood, heard, and inspired. They are fun and light-hearted people to be around. An unevolved Gemini will have you questioning them, life, and everything in between- and will create unneeded chaos in your life. Unevolved Geminis are notorious for being unavailable and disloyal in relationships, and you can tell the difference between whether they are evolved or not by what they do when they are bored. Do your Gemini create or connect, or do they do something destructive, leaving you feeling a deep sense of distrust around them?
EVOLVED CANCER
- Compassionate
- Nostalgic
- Supportive
- Nourishing
- Protective
UNEVOLVED CANCER
- Moody
- Holds a grudge
- Pessimistic
- Manipulative
- Clingy
An evolved Cancer leaves you feeling supported, nourished, and loved. An unevolved Cancer may make you feel the same way, but will be hot and cold on when and how they show it. An evolved Cancer will be your go-to and someone you can trust with basically anything. An unevolved Cancer, however, you will steer away from and not want to express yourself to them for fear of them making things worse. Evolved Cancers understand their emotions, unevolved Cancers let their emotions get the best of them.
EVOLVED LEO
- Self-confident
- Passionate
- Generous
- Motivating
- Kind-hearted
UNEVOLVED LEO
- Entitled
- Angry
- Selfish
- Controlling
- Dramatic
Evolved Leo has an evolved ego. They have a strong sense of self, they know who they are and what they want, but they don’t let that get in the way of how they treat others. Unevolved Leos command the room in a way where you are looking at them in shock rather than in awe. Unevolved Leos think the world revolves around them, evolved Leos think the same thing but also want other people to be in that world or think the same thing about themselves as well. Evolved Leos are like the Sun, and you will feel enlivened in their presence.
EVOLVED VIRGO
- Organized
- Caring
- Down-to-Earth
- Inspiring
- Helpful
UNEVOLVED VIRGO
- Perfectionist
- Overly critical
- Resentful
- Anxious
- Cynical
The easiest way to tell the difference between an evolved Virgo and an unevolved Virgo is the way they make you feel. If they make you feel inspired and like you can accomplish or experience great things, you are dealing with an evolved Virgo. If they are overly critical of everything you do, you are dealing with an unevolved Virgo. Evolved Virgos help you grow, unevolved Virgos tend to make you feel incapable of that. Evolved Virgos can laugh off or let go of the little things, unevolved Virgos will get caught up in them.
EVOLVED LIBRA
- Relationship-oriented
- Balanced
- Charming
- Diplomatic
- Fair
UNEVOLVED LIBRA
- Codependent
- People-pleaser
- Flaky
- Indecisive
- Dishonest
Evolved Libras make some of the best partners, friends, and confidants. Unevolved Libras make some of the hardest of the above to maintain. The difference between the two is the Libra's ability to find the balance between their needs and the needs of others. Libras are relationship-oriented people, but unevolved Libras tend to let this trait get the best of them and will be in and out of relationships and never really settle down to figure out what they truly want and need. Evolved Libras love, but will not sacrifice their sense of self in the process.
EVOLVED SCORPIO
- Passionate
- Mysterious
- Intuitive
- Transformative
- Resilient
UNEVOLVED SCORPIO
- Obsessive
- Secretive
- Reclusive
- Destructive
- Ruthless
The difference between an evolved Scorpio and an unevolved Scorpio is their ability to let go. Evolved Scorpios have learned from their past and have made their life better in the process. Unevolved Scorpios hold onto a lot of resentments and often cause themselves or others emotional turmoil. Evolved Scorpios can let people in and make some of the most loyal, protective, and supportive partners. Unevolved Scorpios tend to be very distrustful of others and have a hard time letting go of control in any way or letting people get close to their inner world.
EVOLVED SAGITTARIUS
- Outgoing
- Optimistic
- Spiritual
- Adventurous
- Genuine
UNEVOLVED SAGITTARIUS
- Dramatic
- Brash
- Superiority-complex
- Unreliable
- Careless
The evolved Sagittarius are inspiring, optimistic, and hopeful. The unevolved Sagittarius is just about the complete opposite of that. Evolved Sagittariuses have learned to fuel their adventurous spirit with intentional action rather than recklessness, and are there for their loved ones rather than leaving people hanging or being unreliable. Unevolved Sagittariuses can be very rude and aggressive and will mask this behavior with humor. They can be very harsh, rather than the evolved Sagittarius who is still outgoing, but is also genuine and confident and aligned with their highest self.
EVOLVED CAPRICORN
- Hard-working
- Loyal
- Stable
- Sensible
- Ambitious
UNEVOLVED CAPRICORN
- Workaholic
- Unforgiving
- Rigid
- Stubborn
- Dominating
When you are looking at an evolved Capricorn, you find yourself in the presence of someone loyal, hardworking, and down-to-earth. An unevolved Capricorn can be judgemental and cold, with only their personal goals in mind. Unevolved Capricorns seem to be stuck in the same place in life, and unmoving in what they believe is best for them. Evolved Capricorns are open to feedback and are flexible enough to figure out what is truly best for them, to explore, and to allow someone else to lead them at times. Evolved Capricorns are responsible and productive but take care of their well-being in the process.
EVOLVED AQUARIUS
- Freedom-oriented
- Logical
- Friendly
- Open-minded
- Outgoing
UNEVOLVED AQUARIUS
- Distant
- Cold
- Disloyal
- Detached
- Superiority-complex
Evolved Aquarius and unevolved Aquarius are mirrors of each other. The evolved version of Aquarius is friendly, open-minded, and supportive of not only themselves but of others as well. The unevolved version of Aquarius can be quite distant and detached from their relationships and life altogether and can be hard for people to get close to. Evolved Aquariuses value their independence, but don't use escapist behavior as an excuse for their actions. Unevolved Aquariuses will leave someone on read for months instead of just telling someone how they feel.
EVOLVED PISCES
- Loving
- Intuitive
- Compassionate
- Creative
- Romantic
UNEVOLVED PISCES
- Consuming
- Escapist
- Moody
- Distant
- Unrealistic
Evolved Pisces are the artists, muses, lovers, and dreamers. Unevolved Pisces may have that same creative energy but tend to wear rose-colored glasses that get them into trouble in the process. Pisces are hard to grasp in the first place with their fluid, mutable nature, but an unevolved Pisces will make that distance feel like miles. Unevolved Pisces can get pretty messy and will act out on their emotions without getting the full picture or giving themselves time to sort things through. Evolved Pisces on the other hand, let their emotions inspire them and know how to step into their true power.
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Featured image by Tanja Ivanova/Getty Images