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!
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Skylar sees things differently. At the time, she was shooting content on her iPhone. Temi came into the picture with a new perspective, an understanding of tech, and, eventually, a camera. “He doesn't give himself enough credit,” Skylar says. “He wasn't just my tripod. He wasn't just standing behind the camera and going ‘click.’ He was giving advice. He was giving me insight to how I could look at things from a different perspective. And I was like, 'Oh, he’s an artist.' I think it was maybe a heartbeat of that kind of energy of like, ‘Baby, can you take this picture?’ And it turned so quickly into, we're partners. We can work together in a way where we're advancing each other's creative thinking.”
The pair often says they’re two sides of the same coin. Skylar is an Aquarius. She attended art school, paints, and loves poetry. She’s more than happy to let the couple’s management firm and agency, Kensington Grey, handle their admin work. And, she loves to sleep in. Temi, on the other hand, wakes up early. He’s a Virgo. He loves a to-do list and regularly checks in on the couple’s brand partnerships spreadsheet to make sure everything is on track.
Because his storytelling was steeped in his love of technology, he didn’t always think of himself as a creative person. “Where I [am] the dreamer who wants to pluck things out of the sky and spend all day with my head in the clouds, Temi [is] so good at grounding me and helping me figure out how to make things make sense on paper. We just work together in such a complimentary way,” Skylar says.
It’s been more than six years since Brooklyn-based couple Temi and Skylar started dating, and nearly four since they cemented their working relationship. On TikTok and Instagram, the couple’s travel, fashion, and home content regularly rack up hundreds of thousands of views. They’ve worked with brands such as Coach, Aesop, Away, and Liquid IV, bringing their vibrant perspectives to every campaign they execute. Still, nearly two years since both Temi and Skylar committed to full-time content creation and creative directing, the couple says their romantic connection remains their priority.
“We told each other we would much rather go back to full-time jobs and preserve our relationship than to be full-time freelancers, barely getting a night's rest [and] barely kissing each other because we're so busy shooting,” Skylar says.
Working from home can make it hard to separate work from personal life for any entrepreneur. It can be even more challenging when your business partner is also your lover. Temi and Skylar had already used couples therapy as a tool to help them effectively communicate with one another. When they ran into challenges while working together, their therapist helped them set physical boundaries to help combat the issues.
"We told each other we would much rather go back to full-time jobs and preserve our relationship than to be full-time freelancers, barely getting a night's rest [and] barely kissing each other because we're so busy shooting."
“It actually took us doing very specific physical things to create boundaries between work and play in our relationship,” Skylar says. “So, for instance, we will only have conversations about work when we're out of bed or we're at the table or in the office. Initially, when we started, we had to light a candle to say that, 'Okay, this is a space where we're connecting, we’re not talking about work.' We needed really hard boundaries at the top. And then it became a little bit more organic.”
The boundaries have been crucial to implement, especially because the couple began working together so naturally. When the pair first met, Skylar was NY-based a social strategist for BuzzFeed and was using content creation to drive business to her lingerie company. She was shooting her own content. Temi was working for Microsoft in D.C. He’d recently traded in his DJing equipment for a camera. “I've always loved taking pictures,” he says. “Even when I was a kid, my African mother would wake me up at 3:00 a.m. [during a] party, and be like, 'Come take the family picture.'”
Growing up, Temi says he watched his parents support each other and be the true definition of partners. He knew he wanted the same for his own relationship. But, the couple also wanted to make sure they were being financially responsible. The pair didn’t quit their traditional jobs until they’d saved up two years' worth of their cost of living. And, Temi received his Master of Business Administration from New York University with the knowledge that it could either help him advance in his corporate career or be applicable to his business with Skylar.
Temi and SkylarCj Hart @hartbreakToday, they say their working relationship is more of a “quiet dance.” They still implement some of the boundaries they learned in therapy, but they also lean into their natural strengths and deep love for one another. When we speak, Temi has planned a date for the couple to see Princess Mononoke in 4K IMAX and added it to their Notion so they can factor it into their busy schedules. “I fully plan to date for the rest of my life,” he says.
Skylar says the couple doesn’t just wait for date nights to check in with one another, though. This often happens in the mornings, after Temi has made her peppermint tea and poured himself a cup of coffee. When they ask each other how they slept, she says, it’s not just a “nicety.” It’s a genuine question meant to foster connection.
“A lot of it happens during the day in the midst of work. We'll stop and we'll hug. Or we’ll slow dance in the kitchen,” she says. “Sometimes it's hard to set a whole date night when you have 7,000 things going on. So, we must grasp these moments and check in when we can. And I think it's become so organic to us that I actually didn't even realize how often we do it. But all day long, we're like, 'Are you good? I felt like your energy shifted,' because we're best friends, we just know. We just feel it happen.”
What’s better than being in love? Building wealth while doing it. Watch Making Cents here for real stories of couples who make money moves together.
Featured image by Cj Hart @hartbreak
Mercury enters Aries from April 16 until May 10, and what you were trying to see through or understand better while Mercury was retrograde here last month, you are experiencing a breakthrough now. Mercury in Aries is insightful and courageous, and people are more likely to speak their minds and initiate conversation with this energy. Mars then enters Leo from April 18 until June 17, reminding us that sometimes it’s okay to be a little more selfish and to focus on what you need right now. Mars in Leo brings forth confidence, creativity, and passion, and brings an exciting energy to charge of your life and advocate for yourself.
Taurus Season officially begins on April 19, bringing some earth sign energy into the mix, grounding and nurturing what you are creating in your life right now. On April 27, we have a New Moon in Taurus, and this is an abundant and fruitful New Moon. This is one of the best New Moons of the year for you to set your intentions for your financial world and a time for seeing new opportunities for abundance. On the last day of the month, Venus moves into Aries until June 6th, and love requires a little more passion, independence, and excitement during this time.
Overall, April is a month of feeling things through, taking more intuitive risks, investing in yourself, and balancing your needs with the needs of your relationships.
Read for your sun and rising sign below to see what April has in store for you.
AriesKyra Jay for xoNecoleARIES
April is your month to shine, Aries. With the chaos of March now over, you are starting to see the progress of where life is and how everything has turned out even better than you were expecting. The month begins with the Sun in your 1st house of self, and you are feeling more confident, courageous, and in tune with yourself. With a Full Moon in your sister sign on April 12, relationships are also coming full circle for you now, and you are claiming your peace this month.
Mercury finally goes direct on April 7 and then enters your sign from April 16 to May 10, and this is going to clear up any miscommunications that you have been through. With Mercury now in your sign, your conversations are lively, your mind is inspiring, and you are thinking one step ahead. Before the month ends, Venus enters your sign from April 30 to June 6, and love is also moving forward for you now. Overall, this is a month where you are experiencing some happy outcomes and loyal support.
TaurusKyra Jay for xoNecoleTAURUS
April is a month of passion and purpose, Taurus. You are living in your abundance, and are focused on valuing yourself and the things you are bringing to fruition right now. Venus, your ruling planet, goes direct on March 12 after being retrograde in your financial house since March 1, and you are moving into the month experiencing more opportunities and also feeling more respected in what you are accumulating for yourself and standing your ground on.
Taurus Season officially begins on April 19, and it’s all about you right now. This Taurus Season is smoothing things out for you in love, with new relationship developments unfolding and life flourishing for you. The New Moon this month is in your sign on April 27, it’s time for a new beginning. You are truly embracing your strength in April, making things happen for yourself, and no longer doubting your future and what is possible for you.
GeminiKyra Jay for xoNecoleGEMINI
This month is all about the options becoming available to you now, Gemini. With your ruling planet Mercury going direct at the beginning of the month on April 7, you no longer feel as held back or out of place as you may have in the past weeks. With Mercury now direct, your thinking is clearer, and you are seeing the opportunities in your career and professional world that you may have missed before.
The more you can embrace your authenticity, the less time you will spend doubting how others perceive you, remember that this month.
On April 12, there is a Full Moon in Libra, highlighting the romance in your life and bringing forth understanding and compassion within your close relationships. You are letting go of old attachments or self-doubts that haven’t been serving your love life, and are growing closer to your own heart in the process. Before April comes to an end, Mars enters your 3rd house of communication, and you are overall leaving the month focused on your progress, your vision, and taking up space because you deserve to.
CancerKyra Jay for xoNecoleCANCER
This month is all about balancing your time and energy wisely, Cancer. You are being reminded not to overwork or overwhelm yourself in April, and to focus on doing the things that are within your control right now. The Sun is in your 10th house of career for most of the month so you are feeling really passionate about the things you are developing in your life right now, but it’s all about finding the right balance between your personal goals and your needs in your relationships as well.
The Full Moon in Libra on April 12 will be a time to devote your energy to self-care, close loved ones, and overall getting some time to decompress. You are ready to let go of the things that don’t make you feel safe or nurtured and are receiving an emotional renewal right now. The New Moon in Taurus at the end of the month is a time to focus on your intentions on your community, friendships, and aspirations in life, and to pay attention to where you can create more abundance here.
LeoKyra Jay for xoNecoleLEO
Things are turning around for you for the better, Leo. April is a dynamic month, and you are owning your inner alchemist. With a Full Moon in your 3rd house of communication on April 12, you are getting the messages you have been looking for and the mental clarity you have found is bringing closure to some of your close relationships. This month is about being flexible and trusting the changes that are happening for you right now.
On April 18, Mars enters your sign until June 17, and this is huge for you. You began the year with Mars retrograde in your sign, so you are getting the opportunity now, to rewrite some of the things that weren’t working for you at the beginning of the year. You are overcoming previous obstacles, and experiencing a breakthrough in your life this month. Before April ends, there is a New Moon in Taurus, highlighting your career, reputation, and professional life. This is a good New Moon to set your intentions for what goals you want to come to fruition for you now.
VirgoKyra Jay for xoNecoleVIRGO
This month is all about building new foundations in your life, Virgo. You are feeling more supported and in tune with your own inner needs and interests, and it’s bringing you closer to people and systems that resonate. Your ruling planet Mercury goes direct this month on April 7 after being retrograde for the past few weeks; bringing more clarity, understanding, and compassion to your partnerships in life. You are focused on love this month and are working together with others to make your dreams come true.
Mid-month, Mars moves into your 12th house of closure and endings, and there is a journey of healing that you experience until June 17. You are motivated to understand yourself better and are looking at the past more right now in order to do so. This is a month of recovering and healing from what has been, for new foundations to be built upon. The New Moon on April 27 is a beautiful way to end the month, as you are getting glimpses of a new, abundant, adventure that is ahead of you.
LibraKyra Jay for xoNecoleLIBRA
This is a big month of closure for you, Libra. The Sun is in your 7th house of love for most of April, and your heart is in the right place. With Venus, your ruling planet, going direct on April 12 after being retrograde since March 1, you are finally able to take a breath. You are not experiencing as many obstacles when it comes to communication matters and you are feeling like you have the tools you need to move forward right now.
The Full Moon of the month is in your sign on April 12, and you are ready to let go of what isn’t working for you. You have been through a lot recently and have gained the clarity you need to let go of old attachments. Venus moves into your house of love before the month ends, and you are leaving the month feeling more in tune with where things are moving forward for you, rather than what you are leaving behind. Your heart moves through a journey in April, and your emotions are showing you a lot.
ScorpioKyra Jay for xoNecoleSCORPIO
April is a month of success, progress, and dreams coming to fruition, Scorpio. You are focused on your health, your priorities, and creating space for the new beginnings that you are creating in your life right now. The Full Moon mid-month is a big closure moment for you, and you are owning the fact that you have healed and you are no longer the same person you were in the past. This is a month of stepping into your power and feeling supported in doing so.
Mid-month, Mars enters your 10th house of career and public life and you are shining within your purpose. Over the next month and a half, you are going to be gaining some new opportunities that will be serving your professional life and goals. This is the month to show up and to let your skills, talents, and authenticity shine. On April 17, there is a New Moon in your opposite sign, Taurus, and you are leaving the month with some pleasant surprises in store for you in love as well.
SagittariusKyra Jay for xoNecoleSAGITTARIUS
April is a new beginning for you, Sagittarius. You are focused on putting the action and effort behind your goals, and you are being proactive within the opportunities that you are looking for right now. With a Full Moon in your 11th house of aspirations mid-month, you are letting go of the way you thought things would play out for you and are owning a more abundant version of things.
On April 27, there is a New Moon in Taurus, which will be highlighting your health and what your body needs more of right now. This is a New Moon to set your intentions for your everyday life and to create a new, beneficial routine that will make things easier for you at the end of the day. Before the month ends, Venus enters your 9th house of adventure, and you are leaving the month with your sights set high. Travel plans are likely, and this is a good time to create some new plans for yourself.
CapricornKyra Jay for xoNecoleCAPRICORN
April is about putting one step in front of the other with patience and dedication and trusting the decisions you are making for yourself right now, Capricorn. The Sun is in your 4th house for most of the month, and you are yearning for your safe spaces, comfort foods, and loyal people. Giving yourself more time to decompress, take care of yourself, and ground your energy is essential this month.
Mars enters your 8th house of transformation mid-month and will be fueling your need for some change, excitement, and emotional rejuvenation over the next month and a half. You are entering an impactful moment of the year for you, and you are motivated toward change right now. The New Moon at the end of the month is in a fellow earth sign, highlighting the romantic new beginnings you are entering now. Overall, this month is a process, and you are opening new doors while finding gratitude in what is here for you now.
AquariusKyra Jay for xoNecoleAQUARIUS
April is about giving yourself time to process, accept, and gain a new perspective, Aquarius. You are being guided towards friendship, connection, and community, and are understanding what may be creating the discord in your life that has been distancing you from that. The Full Moon this month is happening in Libra on April 12, and you are ready to let go of feeling like you have to do it all at once or all alone. This month is a reminder to take your time with all the experiences you want to have, trusting that they will come to fruition for you.
Mars enters your house of love and partnership on April 18, and you enter a passionate and steamy time. Romance is in the air for you as you move through the month, and you are spending more of your time with those who you want to move forward with. Venus also moves into a relationship area of your chart before April ends, and you are surrounded by love and community. Overall, this month is showing you that you are not alone and you don’t have to go through the heavy stuff alone either.
PiscesKyra Jay for xoNecolePISCES
This is a month where your heart is shining, and you are feeling in tune with the progress you have made in your life and within your relationships, Pisces. You are owning your value, your worth, and the beauty of who you are, and are ready to leave the past behind. With Mercury and Venus both going direct in Pisces this month after being retrograde in your sign for the past few weeks, you are in a better space than you have been, and there are fewer obstacles and miscommunications in your life.
You have been through a journey of understanding yourself better through your goals, perspectives, and interests, and have been committing yourself to your authenticity. On April 27, there is a New Moon in Taurus happening, and this New Moon is a good time for communication matters, getting your message across, and for your creative pursuits. With the clarity you feel within your mind and heart right now, you are making a lot of progress in April and feeling pleased with where life is headed.
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Featured image by Kyra Jay for xoNecole