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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The Power Of Your Big 3: Understanding The Astrological Significance You Hold
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.
Astrology has become even more mainstream and a phenomenon than it ever has in the past. We have gone beyond the, “What’s your sign?” and have moved into “What’s your big 3?” seemingly overnight, and rightly so due to the significance of knowing these important details. Your Big 3 in Astrology represents your sun sign, your moon sign, and your rising sign.
This trifecta is thought to be one of the most significant details of your birth chart and gives you and others more of a full-picture look at who you are beyond just your sun sign.
What Does Your Big 3 In Astrology Say About You?
Knowing your big 3 is important, especially if you are someone who has never really resonated with your sun sign. You read about what it means to be an Aries, but may not align with what you see or your experience with other Aries. Meanwhile, the whole time, you have a Libra rising, the complete opposite sign of Aries, and this is why you have always seen yourself as a more laid-back and less confrontational Aries.
Elements hold a key role in your birth chart and having a big 3 where the elements are all compatible or the same often signifies someone who knows who they are and is comfortable in their skin. Whereas someone with a different element for each part of their big 3 may have challenges with identity or defining who they are or how they want to present themselves. It’s a different type of perspective when looking into your big 3, and it helps you see where your strengths and needs are in life, and how to tap more into this potential.
Your Big 3 In Astrology Explained
Your big 3 can help you navigate life by understanding which part of you comes out more in different circumstances. At home, you are most like your moon sign, when you are out and about, you are most like your rising sign. Whether you are at home or out and about, your goals, purpose, and interests are most like your sun sign.
You can find out what your big 3 is by looking up a ‘Birth Chart Calculator’ on your search engine, typing in your birthday details (you will need to know your birth date, location, and the exact time you were born), and generating your birth chart.
Read below for your sun, moon, and rising signs.
YOUR SUN SIGN
Your sun sign represents the core of you and what motivates you to shine and be your best self. This is your personality, goals, purpose, identity, ego, interests, direction, and where you light up in life.
FIRE SUN (Aries Sun, Leo Sun, Sagittarius Sun)
If you are an Aries sun, a Leo sun, or a Sagittarius sun, you are outgoing, confident, fearless, and in tune with yourself and your personal goals and desires in life. You go after the things you want, and you are not afraid to take up space. You are someone who prefers to be more independent, and you are often in more leadership roles in life.
EARTH SUN (Taurus Sun, Virgo Sun, Capricorn Sun)
If you are a Taurus sun, a Virgo sun, or a Capricorn sun, you are grounded, dependable, loyal, hard-working, and logical. You prefer the finer things in life but also work hard to get where you are. You are someone others feel they can rely on, and you are often a support for other people in your life. You are very connected to the material sides of life, and have a gift for manifesting.
AIR SUN (Gemini Sun, Libra Sun, Aquarius Sun)
If you are a Gemini sun, a Libra sun, or an Aquarius sun, you are light-hearted, free-flowing, intelligent, and communicative. You speak what is on your mind, and you love to connect and communicate with others. People know you for the things you say and your out-of-the-box ideas, and you are someone who is open-minded and provides a safe space for people to be authentically themselves.
WATER SUN (Cancer Sun, Scorpio Sun, Pisces Sun)
If you are a Cancer sun, a Scorpio sun, or a Pisces sun, you are thoughtful, generous, emotional, loving, and compassionate. You care deeply about the people you love, and you are always there for others. You may be more emotional than most, and this is due to your strong intuition and open heart. You are creative, inspiring, and motivated towards connection in life.
YOUR MOON SIGN
Your moon sign represents your emotions. This is the way you express yourself emotionally, how you process your emotions, what you need in love, what makes you feel safe and nurtured, your desires, intuition, your inner world, and what’s going on beneath the surface.
FIRE MOON (Aries Moon, Leo Moon, Sagittarius Moon)
If you are an Aries moon, a Leo moon, or a Sagittarius moon, you are someone who is not afraid to communicate your emotions or how you are feeling, and you can feel your emotions from a mile away. You are confident in yourself and are someone who stands up for what you feel is right. You have a strong need to be seen and heard in your relationships, and a certain type of understanding is needed for you to emotionally thrive. You may have some challenges with anger or high energy and are working through emotional impulses in this lifetime.
EARTH MOON (Taurus Moon, Virgo Moon, Capricorn Moon)
If you are a Taurus moon, a Virgo moon, or a Capricorn moon, you are someone who is emotionally grounded, safe, comforting, and logical. You aren’t overly emotional and may not show your emotions to people much at all, but that doesn’t mean you don’t have them. You think before you speak, and you process your emotions before acting on them, and you tend to be more down-to-earth and understanding when it comes to other people’s emotional worlds as well. You are someone people go to when they need someone to talk to you as you are a very good listener.
AIR MOON (Gemini Moon, Libra Moon, Aquarius Moon)
If you are a Gemini moon, a Libra moon, or an Aquarius moon, you are someone who is fun, outgoing, and emotionally open-minded. You don’t like heavy emotions or too much emotional drama, and you tend to be more go-with-the-flow in this area of your life. Good conversation and mutual understanding are very important to you in your relationships and you want funny banter and inspiration in your connections with others.
WATER MOON (Cancer Moon, Scorpio Moon, Pisces Moon)
If you are a Cancer moon, a Scorpio moon, or a Pisces moon, you are someone who lives by their heart and values your emotional world deeply. You crave a deep type of intimacy in your partnerships and you need a partner who is going to give you that type of emotional connection. You are more private with your emotional world and you tend to hold a lot in, but this can often lead to sudden outbursts as well. Overall, you are the definition of emotion and others learn a lot from you on what it means to love and to feel.
YOUR ASCENDANT (RISING SIGN)
Your ascendant sign represents your perception and the energy you put out into the world. This is the way you come across to others, the way you express yourself, your physical traits and aesthetics, how you manifest, society, and what you expect from the world around you.
FIRE ASCENDANT (Aries Rising, Leo Rising, Sagittarius Rising)
If you are an Aries rising, a Leo rising, or a Sagittarius rising, you come across to others as confident, bold, and stylish. You are known for the way you look or the way you present yourself, and you are usually adorned in bright colors or wearing something that others take a lot of notice of. You are someone who walks into a room, and all eyes are on you, and you love that. You want to be on the move and on the go, and you love to show up in the world exactly as you are today. You see the world with a lot of possibilities and like it's yours to have fun and enjoy yourself in.
EARTH ASCENDANT (Taurus Rising, Virgo Rising, Capricorn Rising)
If you are a Taurus rising, a Virgo rising, or a Capricorn rising, you come across to others as responsible, beautiful, natural, and dependable. You are a hard worker, and you may be known for your career or the work that you do. You are someone who walks into a room and people feel an immediate sense of comfort and like you are someone they can trust. You have strong values and goals, and you are someone who knows what they want. People love to be around your down-to-earth energy, and you make others feel safe and grounded.
AIR ASCENDANT (Gemini Rising, Libra Rising, Aquarius Rising)
If you are a Gemini rising, a Libra rising, or an Aquarius rising, you come across to others as outgoing, friendly, and talkative. You see the world as a place to learn, connect, and be inspired, and you are on a quest for knowledge and understanding. You connect with people from all walks of life, and you tend to have a pretty open-minded and unique friend group. You care a lot about your style and aesthetic and always strive to be authentically you wherever you are. You can talk to people for hours and are often meeting new people and making new friends wherever you go.
WATER ASCENDANT (Cancer Rising, Scorpio Rising, Pisces Rising)
If you are a Cancer rising, a Scorpio rising, or a Pisces rising, you navigate life through the lens of your emotions, and you are deeply connected to the undercurrents of life. You are ruled by your emotions, and this side of you is not something you can keep hidden away easily. You get emotional when you think about society and others at large, and you want to be known for the kind and sincere person you are. When you walk into a room, you feel other people's energy right away and are highly empathic and intuitive.
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