Philadelphia woman unexpectedly lost her job; Repaid $ 169,000 in debt in less than 2 years

0

Philadelphia-based financial services professional Shaquana Watson-Harkness has accumulated over $ 169,000 in debt. In an Instagram post, she mentions that she has accumulated over $ 20,000 in debt while traveling the world.

On New Years Eve 2018, Watson-Harkness resolved to stop using credit cards to finance her lifestyle. Although she admitted that it was difficult to break long-standing habits, she was willing to do whatever it took to take control of her finances.

Less than two years after committing to free herself from her debt, she has paid off $ 169,000, according to a CNBC Grow Acorns article.

During her wealth-building journey, Watson-Harkness received shocking news. In November 2019, her employer handed her the infamous pink slip, leaving her without a full-time job. It was the third time Watson-Harkness had been fired.

“Always be prepared for the unexpected and keep multiple sources of income outside of your daily work,” Watson-Harkness said Black company. “The multiple streams of income can be passive income such as investments or working on your business as a side activity. “

Philadelphia woman tackles debt

As a financial services professional, Watson-Harkness was the person people turned to for help with their personal finances. She was happy to give advice, but she was also ashamed because she was struggling with her own financial difficulties.

Watson-Harkness had his first interaction with college credit cards, swiping his first card to cover a spring break trip. Without realizing it, she ignored one of the main rules of using credit cards: do not maximize your card. She also underestimated the cost of student loans which turned into a monthly payment spread over a long time horizon. Over the next 20 years, she continued to use her credit card for her lifestyle purchases and increased her debt load.

But what doesn’t break you only makes you stronger. These lessons have become the basis of his success today.

“I managed to build a six-figure investment portfolio while paying off my six-figure debt,” Watson-Harkness explained on Instagram. “I made mistakes, took lessons and ultimately perfected my process.”

Spend less and save more

His first step towards financial freedom was to recognize his problems and then change his ways.

In February 2018, Watson-Harkness enrolled in a money management course. As she began to change her mind about spending and saving, she began to make progress in her finances. She created her first budget and debt repayment plan to kickstart her goals.

Then she tracked her expenses. She noticed that she was spending over $ 3,000 per month. She adjusted her spending habits to avoid living from paycheck to paycheck. She notably reduced her spending by using coupons and savings strategies, reducing her grocery bill from $ 800 to $ 500 per month.

Two months later, she implemented the debt snowball method. This strategy focuses on paying off smaller balances first and then increasing it to meet larger debts. In 15 months, she paid off $ 160,000 in credit card debt, a rental property mortgage and student loans. She even started paying herself first and funding retirement accounts.

“The biggest mistake I made before creating my first budget was that I never paid myself first,” Watson-Harkness wrote in the CNBC article. “I always paid my bills and everyone else before I put any money in my savings or put anything aside for personal purchases.”

Help others reduce their debts and build wealth

Watson-Harkness understands the impact debt can have on a person’s life, especially when you lose a job. Fortunately, she was able to repay the majority of her debt before she was fired. Now she is committed to helping other women build a financial cushion.

In December 2019, Watson-Harkness decided to use her financial management background to launch Dollars Makes Cents, a financial education company that helps millennials achieve financial independence.

“Today, through my business activity, I strive to help women understand that wealth creation can be achieved with consistency, discipline and have a vision of how you want to live your life in the future. . “



Source link

Leave A Reply

Your email address will not be published.