1 00:00:00,000 --> 00:00:02,550 - The biggest mistake that homeowners make 2 00:00:02,550 --> 00:00:06,150 is buying a home for just who they are right now, 3 00:00:06,150 --> 00:00:08,220 not who they might grow into. 4 00:00:08,220 --> 00:00:10,770 - My guest today is Tiffany Aliche, 5 00:00:10,770 --> 00:00:12,900 better known as the Budgetnista. 6 00:00:12,900 --> 00:00:16,920 In her late 20s, she was over $300,000 in debt, 7 00:00:16,920 --> 00:00:20,430 but her climb back made her one of the most trusted voices 8 00:00:20,430 --> 00:00:22,230 in personal finance. 9 00:00:22,230 --> 00:00:25,560 Today, she's a New York Times bestselling author. 10 00:00:25,560 --> 00:00:27,300 And she's here to share with us 11 00:00:27,300 --> 00:00:29,280 what most people don't understand 12 00:00:29,280 --> 00:00:31,320 about budgeting for a home. 13 00:00:31,320 --> 00:00:32,670 Welcome back to "Own It." 14 00:00:32,670 --> 00:00:35,700 I'm Angie Hicks, Co-Founder of Angie. 15 00:00:35,700 --> 00:00:38,820 Own It is everything you need to know about owning a home 16 00:00:38,820 --> 00:00:40,470 without it owning you. 17 00:00:40,470 --> 00:00:43,290 In today's episode, we talk about the real math 18 00:00:43,290 --> 00:00:44,610 about owning a home, 19 00:00:44,610 --> 00:00:47,400 the rule that keeps you from buying too much, 20 00:00:47,400 --> 00:00:49,410 and the one mistake homeowners make 21 00:00:49,410 --> 00:00:51,630 that has nothing to do with the house. 22 00:00:51,630 --> 00:00:54,840 Let's get into it with Tiffany Aliche. 23 00:00:54,840 --> 00:00:57,390 Tiffany, it's great to have you on the show. 24 00:00:57,390 --> 00:00:59,430 I love to talk budgets. 25 00:00:59,430 --> 00:01:01,200 In learning about your background, 26 00:01:01,200 --> 00:01:04,290 you grew up talking budgets, budgets, budgets. 27 00:01:04,290 --> 00:01:06,270 You said your dad was a CFO, 28 00:01:06,270 --> 00:01:10,386 so dinner table conversation revolved around finances. 29 00:01:10,386 --> 00:01:11,219 - All the time. 30 00:01:11,219 --> 00:01:13,944 I'm one of five girls, so you can imagine the expense. 31 00:01:13,944 --> 00:01:16,080 (both laughing) 32 00:01:16,080 --> 00:01:18,450 So, we talked about money all the time. 33 00:01:18,450 --> 00:01:21,120 I didn't know that other families didn't. 34 00:01:21,120 --> 00:01:25,080 Specifically, we would have like a game night/family night 35 00:01:25,080 --> 00:01:27,750 on Thursdays where we would play like board games 36 00:01:27,750 --> 00:01:30,990 and things, but also talk about grades and behavior, 37 00:01:30,990 --> 00:01:34,140 me, (laughs) but then also money. 38 00:01:34,140 --> 00:01:38,040 I can remember just as basic as we're saving for vacation, 39 00:01:38,040 --> 00:01:39,450 or I remember in high school, 40 00:01:39,450 --> 00:01:41,580 my father had his financial advisor 41 00:01:41,580 --> 00:01:43,590 come sit at the table with us. 42 00:01:43,590 --> 00:01:45,240 I had made like a bunch of babysitting money 43 00:01:45,240 --> 00:01:47,070 and I invested for the first time 44 00:01:47,070 --> 00:01:48,360 with the financial advisor. 45 00:01:48,360 --> 00:01:49,830 We didn't get to be 16s. - I love that. 46 00:01:49,830 --> 00:01:52,020 - At 16, you got to walk to the bank with my dad 47 00:01:52,020 --> 00:01:54,870 and he would open up your first bank account. 48 00:01:54,870 --> 00:01:56,490 This is back when we had passbooks. 49 00:01:56,490 --> 00:01:57,678 Remember, I'm dating myself. 50 00:01:57,678 --> 00:02:00,870 (both laughing) 51 00:02:00,870 --> 00:02:02,277 - Yes, I do, I remember that. 52 00:02:02,277 --> 00:02:04,350 - And what I really loved about my parents 53 00:02:04,350 --> 00:02:06,720 is they didn't approach money from the scary place, 54 00:02:06,720 --> 00:02:08,490 just very matter of fact. 55 00:02:08,490 --> 00:02:12,960 I worked every summer since I turned 14, every pay period, 56 00:02:12,960 --> 00:02:15,780 my dad would, he would have you come and sit with him 57 00:02:15,780 --> 00:02:17,850 and you would have to explain all the withdrawals 58 00:02:17,850 --> 00:02:18,720 from your passbook. 59 00:02:18,720 --> 00:02:20,220 You can spend your money how you like, 60 00:02:20,220 --> 00:02:21,750 but you have to be able to back it up. 61 00:02:21,750 --> 00:02:24,180 And I was a mess in the beginning. 62 00:02:24,180 --> 00:02:26,430 But it really taught me to be more responsible. 63 00:02:26,430 --> 00:02:29,970 And really, I appreciated it once I hit college. 64 00:02:29,970 --> 00:02:32,730 And my college roommate had debt collectors calling 65 00:02:32,730 --> 00:02:34,230 our dorm room. 66 00:02:34,230 --> 00:02:36,570 At 17, 18, we thought it was hilarious. 67 00:02:36,570 --> 00:02:39,210 - Like, how is that possible at 17 or 18, right? 68 00:02:39,210 --> 00:02:41,910 - The sad news was that her father had passed away. 69 00:02:41,910 --> 00:02:45,390 And so her mother was struggling to raise her and her sister 70 00:02:45,390 --> 00:02:47,370 and had opened up credit cards in her name. 71 00:02:47,370 --> 00:02:49,410 I didn't even know that was a thing. 72 00:02:49,410 --> 00:02:52,680 So that was the first time that I thought, oh, wow. 73 00:02:52,680 --> 00:02:55,027 And so I was casually telling my dad, 74 00:02:55,027 --> 00:02:56,670 "Oh, you know, dad, you know, 75 00:02:56,670 --> 00:02:57,990 debt collectors call the dorm room, 76 00:02:57,990 --> 00:02:59,850 but don't worry, we make funny voices 77 00:02:59,850 --> 00:03:01,080 so they won't know that it's us." 78 00:03:01,080 --> 00:03:02,979 And he's like, "Yeah, that's not..." 79 00:03:02,979 --> 00:03:04,920 (both laughing) 80 00:03:04,920 --> 00:03:06,270 - They're going to keep calling. 81 00:03:06,270 --> 00:03:08,580 - And so he gave me some really solid advice 82 00:03:08,580 --> 00:03:10,710 and I shared it with her and it helped. 83 00:03:10,710 --> 00:03:13,200 Whenever she had other financial questions, 84 00:03:13,200 --> 00:03:14,760 she would ask me and I would ask him. 85 00:03:14,760 --> 00:03:17,340 And then, because I lived, I went to Rutgers, 86 00:03:17,340 --> 00:03:19,800 but I lived on a girls campus, Douglas. 87 00:03:19,800 --> 00:03:21,637 And so all the girls on the floor started saying, 88 00:03:21,637 --> 00:03:22,807 "Can you ask your dad this? 89 00:03:22,807 --> 00:03:23,910 "Can you ask your dad that?" 90 00:03:23,910 --> 00:03:26,340 And I thought, "Well, I want to be the person." 91 00:03:26,340 --> 00:03:28,080 And so that's how it really started for me, 92 00:03:28,080 --> 00:03:31,020 that it was this thirst to also have the knowledge 93 00:03:31,020 --> 00:03:33,390 because I saw how powerful it was and helpful. 94 00:03:33,390 --> 00:03:36,825 - So did you end up studying financing or business 95 00:03:36,825 --> 00:03:37,980 while you were at Rutgers? - Yeah. 96 00:03:37,980 --> 00:03:39,750 - So I took a lot of finance classes 97 00:03:39,750 --> 00:03:41,760 and I got my bachelor's in business. 98 00:03:41,760 --> 00:03:44,460 And then after graduating college, 99 00:03:44,460 --> 00:03:46,590 I decided that I hated corporate America 100 00:03:46,590 --> 00:03:47,850 because I had a bunch of internships. 101 00:03:47,850 --> 00:03:51,420 I said, "Oh no, my soul is shriveling up here." 102 00:03:51,420 --> 00:03:53,670 And (laughs) 'cause I was a fun girl. 103 00:03:53,670 --> 00:03:56,760 And so, but I really loved kids. 104 00:03:56,760 --> 00:03:58,410 And so I said, "Maybe I'll be a teacher." 105 00:03:58,410 --> 00:04:02,700 And so, I went back to school and became a teacher. 106 00:04:02,700 --> 00:04:04,950 I taught preschool for 10 years. 107 00:04:04,950 --> 00:04:06,300 I got my master's. 108 00:04:06,300 --> 00:04:07,650 I thought I was gonna be a principal, 109 00:04:07,650 --> 00:04:09,630 but I realized that you don't actually get to teach 110 00:04:09,630 --> 00:04:10,770 when you're a principal. 111 00:04:10,770 --> 00:04:12,450 So I got my master's in education, 112 00:04:12,450 --> 00:04:14,700 which was still helpful for starting the business, 113 00:04:14,700 --> 00:04:15,843 the Budgetnista. 114 00:04:16,680 --> 00:04:18,213 But yeah, I loved it. 115 00:04:19,080 --> 00:04:21,660 To me, the foundation of the Budgetnista 116 00:04:21,660 --> 00:04:25,230 is that I learned how to teach these little people 117 00:04:25,230 --> 00:04:28,500 to take them from a place of no knowledge to knowledge. 118 00:04:28,500 --> 00:04:30,390 And so that's what I do with money. 119 00:04:30,390 --> 00:04:32,760 People come to me like they're three and four essentially, 120 00:04:32,760 --> 00:04:34,770 and I get to do so in a way that's fun 121 00:04:34,770 --> 00:04:36,570 and engaging and non-judgmental. 122 00:04:36,570 --> 00:04:38,610 So I really learned that in the classroom. 123 00:04:38,610 --> 00:04:40,350 - You know, your idea around the Budgetnista 124 00:04:40,350 --> 00:04:45,120 kind of started with the housing crisis of 2008, right? 125 00:04:45,120 --> 00:04:48,300 So walk us through what happened to you during that time. 126 00:04:48,300 --> 00:04:51,750 - So up until '23, '24-ish, '25, 127 00:04:51,750 --> 00:04:53,970 I did whatever my parents told me to do. 128 00:04:53,970 --> 00:04:56,490 You know, like they told me when it came to my finances. 129 00:04:56,490 --> 00:04:58,770 And then about '25, I said, "You know what? 130 00:04:58,770 --> 00:05:01,057 I'm a full-grown adult, let me blow up my life." 131 00:05:01,057 --> 00:05:03,520 (both laughing) 132 00:05:03,520 --> 00:05:04,353 I didn't say it like that, 133 00:05:04,353 --> 00:05:05,943 I thought I was just being mature. 134 00:05:06,840 --> 00:05:09,780 And so, I had just gotten my master's in education. 135 00:05:09,780 --> 00:05:11,310 And instead of listening to my parents 136 00:05:11,310 --> 00:05:13,890 to apply for scholarships, I got student loans. 137 00:05:13,890 --> 00:05:17,010 So that left me $52,000 in student loan debt. 138 00:05:17,010 --> 00:05:18,000 Which I was like, no biggie, 139 00:05:18,000 --> 00:05:20,160 because they'd helped me with undergraduates, 140 00:05:20,160 --> 00:05:22,170 so I didn't have any undergraduate debt. 141 00:05:22,170 --> 00:05:24,900 After that I decided, you know, I've got my master's 142 00:05:24,900 --> 00:05:26,610 and I was living with my sister, 143 00:05:26,610 --> 00:05:28,410 and I said, "I think I'm gonna buy my first property." 144 00:05:28,410 --> 00:05:30,210 I'd saved like $30,000. 145 00:05:30,210 --> 00:05:31,830 And that was enough for like, yeah, 146 00:05:31,830 --> 00:05:35,670 and I was making $39,000 as a preschool teacher, 147 00:05:35,670 --> 00:05:37,200 but then like an additional- 148 00:05:37,200 --> 00:05:38,790 - So you were a good saver. 149 00:05:38,790 --> 00:05:39,870 - An amazing saver, 150 00:05:39,870 --> 00:05:42,487 because I was making additional like five, 151 00:05:42,487 --> 00:05:45,390 $6,000 a year babysitting and tutoring. 152 00:05:45,390 --> 00:05:47,730 So I was really hustling to save. 153 00:05:47,730 --> 00:05:49,837 And so I had this 30,000 and I said, you know what? 154 00:05:49,837 --> 00:05:53,010 You know, I want to buy my first place. 155 00:05:53,010 --> 00:05:55,260 And so a condo and my sister 156 00:05:55,260 --> 00:05:57,570 who was my roommate at the time, my older sister, 157 00:05:57,570 --> 00:05:59,430 I said, great, she'll help me with the mortgage. 158 00:05:59,430 --> 00:06:00,263 And she said, okay. 159 00:06:00,263 --> 00:06:03,870 And so I bought a condo for $220,000. 160 00:06:03,870 --> 00:06:06,210 My mortgage, I'll never forget, was 1660. 161 00:06:06,210 --> 00:06:07,490 And she paid me like 600. 162 00:06:07,490 --> 00:06:08,730 So I'm like, oh. 163 00:06:08,730 --> 00:06:09,563 So essentially, 164 00:06:09,563 --> 00:06:11,670 I was paying a thousand bucks a month for this property. 165 00:06:11,670 --> 00:06:13,920 And that wasn't necessarily a bad decision. 166 00:06:13,920 --> 00:06:16,470 I just didn't know the market was going to crash. 167 00:06:16,470 --> 00:06:18,810 And then a friend of mine who I thought was wealthy, 168 00:06:18,810 --> 00:06:20,400 because in your 20s you think nice car, 169 00:06:20,400 --> 00:06:21,840 nice apartment, you're rich. 170 00:06:21,840 --> 00:06:22,770 He was not. 171 00:06:22,770 --> 00:06:24,780 I like to call him "Jake the Thief." 172 00:06:24,780 --> 00:06:28,350 I did not know he was a thief and that's why he had money. 173 00:06:28,350 --> 00:06:29,730 So he convinced me. 174 00:06:29,730 --> 00:06:30,900 I said, "Jake, you're rich." 175 00:06:30,900 --> 00:06:32,490 He said, "Sure." 176 00:06:32,490 --> 00:06:34,500 I said, "Could you show me how you got rich?" 177 00:06:34,500 --> 00:06:37,230 And he said, "Well, I invest with other people's money." 178 00:06:37,230 --> 00:06:38,228 And I was like, "Oh, what's that?" 179 00:06:38,228 --> 00:06:39,061 I didn't know he meant mine. 180 00:06:39,061 --> 00:06:41,400 He said, "You could take money off of a credit card." 181 00:06:41,400 --> 00:06:42,360 I didn't know that. 182 00:06:42,360 --> 00:06:44,280 I had a credit card, 183 00:06:44,280 --> 00:06:45,720 but my dad had always instructed me 184 00:06:45,720 --> 00:06:48,060 to pay it off every month in full, so I did. 185 00:06:48,060 --> 00:06:50,310 My credit score then was like a 802, 186 00:06:50,310 --> 00:06:51,900 'cause I paid off my credit card every month. 187 00:06:51,900 --> 00:06:53,407 - Which is fantastic. - And he said, 188 00:06:53,407 --> 00:06:54,517 "Take the money off your credit card. 189 00:06:54,517 --> 00:06:56,167 "As a matter of fact, open up two more 190 00:06:56,167 --> 00:06:58,567 "and take the money off all these credit cards. 191 00:06:58,567 --> 00:07:01,027 "Give it to me, I will invest it, 192 00:07:01,027 --> 00:07:04,530 "and then pay you monthly from this investment." 193 00:07:04,530 --> 00:07:06,827 And I was like, "Oh my gosh, I'm gonna be rich!" 194 00:07:07,800 --> 00:07:11,130 I was not, $35,000 in credit card debt later, 195 00:07:11,130 --> 00:07:12,750 I was crying. 196 00:07:12,750 --> 00:07:14,703 And he ran off with the money. 197 00:07:15,690 --> 00:07:17,850 I'll never forget, I mean, it was such a, 198 00:07:17,850 --> 00:07:19,500 I just ignore red flags apparently, 199 00:07:19,500 --> 00:07:21,450 because I remember at the time, 200 00:07:21,450 --> 00:07:22,650 there was a bank down the street 201 00:07:22,650 --> 00:07:25,290 where I was taking the money out of off my cards. 202 00:07:25,290 --> 00:07:27,390 And I used to, for preschool, 203 00:07:27,390 --> 00:07:29,910 we used to have to get dressed in nurses scrubs 204 00:07:29,910 --> 00:07:31,530 so you could play with the kids without like, 205 00:07:31,530 --> 00:07:32,700 you know, worrying about your clothes. 206 00:07:32,700 --> 00:07:35,910 And I had on like these pink scrub bottoms 207 00:07:35,910 --> 00:07:38,160 and a teddy bear scrub top. 208 00:07:38,160 --> 00:07:39,360 I probably just look like a baby. 209 00:07:39,360 --> 00:07:40,387 I'm at the bank asking, 210 00:07:40,387 --> 00:07:43,776 "Can I please take $35,000 off my card?" 211 00:07:43,776 --> 00:07:44,609 - Oh my God. - They were like, 212 00:07:44,609 --> 00:07:46,620 "Are you okay?" And I was like, "Yeah." 213 00:07:46,620 --> 00:07:47,730 Meanwhile, I'm like, 25. - They're like, 214 00:07:47,730 --> 00:07:49,683 what's going on? People don't do this- 215 00:07:49,683 --> 00:07:51,037 - Yes, and they were like, 216 00:07:51,037 --> 00:07:52,170 "Are you sure it's not a scam?" 217 00:07:52,170 --> 00:07:54,390 I'm like, "No, this is my friend." 218 00:07:54,390 --> 00:07:57,420 You know, but I was an adult, so they said, "Okay." 219 00:07:57,420 --> 00:07:58,380 I mean, you think it would have had 220 00:07:58,380 --> 00:08:00,930 like an alarm ringing in my head, it didn't. 221 00:08:00,930 --> 00:08:04,650 And then right when the housing market started to crash, 222 00:08:04,650 --> 00:08:06,390 my school, which was non-profit based, 223 00:08:06,390 --> 00:08:08,760 lost their funding and my school closed. 224 00:08:08,760 --> 00:08:12,967 So now I had no job, $35,000 in credit card debt, 225 00:08:12,967 --> 00:08:17,967 $220,000 mortgage, and $50,000 in student loan debt 226 00:08:18,840 --> 00:08:20,790 and no way to pay it. 227 00:08:20,790 --> 00:08:23,010 And the debt collector started rolling in 228 00:08:23,010 --> 00:08:25,710 and I just remember feeling panicked. 229 00:08:25,710 --> 00:08:27,150 And I didn't want to tell my parents 230 00:08:27,150 --> 00:08:28,470 because I was like, "Oh my gosh." 231 00:08:28,470 --> 00:08:30,900 I had not consulted them on any of these things really. 232 00:08:30,900 --> 00:08:33,150 My sister was like, "Well, what if they take your house, 233 00:08:33,150 --> 00:08:33,983 what will you do?" 234 00:08:33,983 --> 00:08:36,150 I said, "I guess I could move back home." 235 00:08:36,150 --> 00:08:37,500 She's like, "Well, why wait? 236 00:08:37,500 --> 00:08:39,030 'Cause what if they lock you out, you know, 237 00:08:39,030 --> 00:08:40,590 and then you can't get your things." 238 00:08:40,590 --> 00:08:43,050 So I remember like bringing my lamp home 239 00:08:43,050 --> 00:08:46,290 and then bringing like my blanket and then my mattress. 240 00:08:46,290 --> 00:08:47,700 My dad was like, "What? 241 00:08:47,700 --> 00:08:48,747 Do you live here?" 242 00:08:48,747 --> 00:08:50,520 - You just slowly moving back in. 243 00:08:50,520 --> 00:08:53,520 They're like, what's going on? - Yes, and so 244 00:08:53,520 --> 00:08:55,680 what I told him at the time was, "Oh, I lost my job." 245 00:08:55,680 --> 00:08:56,760 And he was like, "Okay." 246 00:08:56,760 --> 00:08:57,700 I didn't tell him about the other things. 247 00:08:57,700 --> 00:08:59,850 And I was like too ashamed. 248 00:08:59,850 --> 00:09:01,500 'Cause I knew, I mean, they're my parents, they love me, 249 00:09:01,500 --> 00:09:04,890 so, but I was ashamed that I didn't ask for advice 250 00:09:04,890 --> 00:09:06,270 and had made these mistakes. 251 00:09:06,270 --> 00:09:09,090 But I fell into this financial depression 252 00:09:09,090 --> 00:09:11,340 because I just felt so overwhelmed. 253 00:09:11,340 --> 00:09:15,120 And finally, I remember my best friend Linda called me. 254 00:09:15,120 --> 00:09:16,657 She was like, "You're not picking up your phone. 255 00:09:16,657 --> 00:09:17,641 "Is everything okay?" 256 00:09:17,641 --> 00:09:18,957 And I was like, "No." 257 00:09:18,957 --> 00:09:19,920 And I told her everything. 258 00:09:19,920 --> 00:09:21,420 I'm like, "I'm living back home." 259 00:09:21,420 --> 00:09:24,510 By then, I was like 28 going on 29. 260 00:09:24,510 --> 00:09:27,247 I was like, "I'm gonna be spending my 30th birthday 261 00:09:27,247 --> 00:09:29,070 "in my middle school bed." 262 00:09:29,070 --> 00:09:31,237 You know, I was like, "I owe this money. 263 00:09:31,237 --> 00:09:32,640 "They're gonna take my house!" 264 00:09:32,640 --> 00:09:33,660 And she started laughing. 265 00:09:33,660 --> 00:09:36,300 I said, "Mm, I fail to see what's so funny." 266 00:09:36,300 --> 00:09:38,347 And she was like, "I'm back home too. 267 00:09:38,347 --> 00:09:40,200 "I also lost my job." 268 00:09:40,200 --> 00:09:41,220 I kind of looked around, 269 00:09:41,220 --> 00:09:43,260 all my friends were struggling financially, 270 00:09:43,260 --> 00:09:45,060 and I was always the go-to. 271 00:09:45,060 --> 00:09:46,867 And I thought, "Well, Tiffany, you know how to budget 272 00:09:46,867 --> 00:09:49,230 "and save and you know how to navigate your debt 273 00:09:49,230 --> 00:09:50,063 and credit." 274 00:09:50,063 --> 00:09:53,580 And so I started doing that for myself and then them. 275 00:09:53,580 --> 00:09:55,297 And then before I knew it, a friend said, 276 00:09:55,297 --> 00:09:56,760 "You should make this into a business." 277 00:09:56,760 --> 00:09:58,530 And so I started The Budgetnista. 278 00:09:58,530 --> 00:10:00,840 - So tell me a little bit about what that process 279 00:10:00,840 --> 00:10:04,230 of coming back from that low was like? 280 00:10:04,230 --> 00:10:06,390 What did it take to kind of rebuild? 281 00:10:06,390 --> 00:10:09,840 - The one, it started by I had to release the shame. 282 00:10:09,840 --> 00:10:12,333 Because shame shields solutions. 283 00:10:13,440 --> 00:10:15,570 And the only way to release the shame, 284 00:10:15,570 --> 00:10:16,650 I didn't know that at the time, 285 00:10:16,650 --> 00:10:18,240 but I had to give voice to it. 286 00:10:18,240 --> 00:10:20,490 Because shame is like, "Don't tell anybody. 287 00:10:20,490 --> 00:10:21,630 Don't say anything." 288 00:10:21,630 --> 00:10:24,060 And so when I told Linda, 289 00:10:24,060 --> 00:10:26,760 and she wasn't like wagging her finger at me, 290 00:10:26,760 --> 00:10:29,250 I thought, "Oh, it released some of that." 291 00:10:29,250 --> 00:10:31,380 I said, "Oh, this is not so bad." 292 00:10:31,380 --> 00:10:34,770 I'm not like, you know, I didn't kick anyone's puppy. 293 00:10:34,770 --> 00:10:36,870 You know, they mean like Tiffany, you know, 294 00:10:36,870 --> 00:10:40,770 and so, I started to realize wait you made a mistake, 295 00:10:40,770 --> 00:10:42,900 but you're not a mistake 296 00:10:42,900 --> 00:10:45,283 because that's what I realized I was saying like, you know, 297 00:10:45,283 --> 00:10:47,310 I was beating myself up so bad 298 00:10:47,310 --> 00:10:50,190 and she gave me the permission to forgive myself, 299 00:10:50,190 --> 00:10:52,620 and in releasing that shame I said, 300 00:10:52,620 --> 00:10:55,770 like the lessons you learned as a kid are still here, 301 00:10:55,770 --> 00:10:58,060 you know, and so I, first things first, 302 00:10:58,060 --> 00:11:00,030 I was like, okay something with this debt. 303 00:11:00,030 --> 00:11:02,190 You have to get it off your back. 304 00:11:02,190 --> 00:11:05,190 Debt collectors calling you 24/7, there has to be a way. 305 00:11:05,190 --> 00:11:08,760 And so a friend of mine was a bankruptcy and debt lawyer. 306 00:11:08,760 --> 00:11:10,980 And I was like, how do I navigate these debt collectors? 307 00:11:10,980 --> 00:11:13,417 He said, "You know, by law, you can ask 308 00:11:13,417 --> 00:11:16,027 "that they not call you, that they email you 309 00:11:16,027 --> 00:11:17,400 "or send you letters instead." 310 00:11:17,400 --> 00:11:18,233 I'm like, "Really?" 311 00:11:18,233 --> 00:11:19,327 He said, "Yeah, there's something called 312 00:11:19,327 --> 00:11:20,790 "a cease and desist letter." 313 00:11:20,790 --> 00:11:23,940 What, I ran to my Staples and faxed, 314 00:11:23,940 --> 00:11:26,129 you know, we faxed back then, you know? 315 00:11:26,129 --> 00:11:28,440 - Yeah, I'm like, I need this, I need this, 316 00:11:28,440 --> 00:11:30,366 I need the calls to stop, right? 317 00:11:30,366 --> 00:11:31,199 - And so I just said, "Hey, 318 00:11:31,199 --> 00:11:33,097 you can communicate with me via email. 319 00:11:33,097 --> 00:11:36,480 "Here's the email and via letter, but no more calls." 320 00:11:36,480 --> 00:11:38,130 So that gave me a little peace of mind 321 00:11:38,130 --> 00:11:39,120 where I was like, "Okay." 322 00:11:39,120 --> 00:11:41,520 And then I realized at the time, 323 00:11:41,520 --> 00:11:44,040 this was right before the foreclosure was about to hit 324 00:11:44,040 --> 00:11:45,480 'cause it took a while. 325 00:11:45,480 --> 00:11:47,040 So many people were losing their homes, 326 00:11:47,040 --> 00:11:49,170 they actually didn't foreclose on my home 327 00:11:49,170 --> 00:11:51,750 for some months later. 328 00:11:51,750 --> 00:11:53,430 So it didn't hit my credit score. 329 00:11:53,430 --> 00:11:55,830 And I realized, I could do a balance transfer 330 00:11:55,830 --> 00:11:57,660 before this great credit score tanks 331 00:11:57,660 --> 00:12:00,090 because of this foreclosure that's pending. 332 00:12:00,090 --> 00:12:01,650 You know, and so that's what I did. 333 00:12:01,650 --> 00:12:05,790 I transferred as much as I could from my credit cards 334 00:12:05,790 --> 00:12:07,230 with higher interest rates. 335 00:12:07,230 --> 00:12:08,850 I was able to get, because my credit score 336 00:12:08,850 --> 00:12:12,120 was still so high, I think it was almost like 18 months, 337 00:12:12,120 --> 00:12:15,120 it was something crazy, of zero interest. 338 00:12:15,120 --> 00:12:18,360 So I was like, okay, it wasn't all of the credit card debt, 339 00:12:18,360 --> 00:12:21,360 but most of it, maybe like $20,000 or so. 340 00:12:21,360 --> 00:12:24,330 So now every penny I paid to the 20,000 341 00:12:24,330 --> 00:12:27,390 I was able to transfer actually went to the credit card. 342 00:12:27,390 --> 00:12:28,310 - [Angie] Was going to paying off the debt. 343 00:12:28,310 --> 00:12:29,220 - So that helped a lot. 344 00:12:29,220 --> 00:12:32,100 It took me three years to get out of that credit card debt. 345 00:12:32,100 --> 00:12:33,937 And then when it came to the student loans, I was like, 346 00:12:33,937 --> 00:12:34,980 "I can't do anything about it." 347 00:12:34,980 --> 00:12:37,860 So I did, because they weren't private, 348 00:12:37,860 --> 00:12:39,210 they were federal student loans. 349 00:12:39,210 --> 00:12:42,930 So I was able to defer them and forbearance, 350 00:12:42,930 --> 00:12:44,880 which just meant basically freeze. 351 00:12:44,880 --> 00:12:47,640 You know, so I just focused on the credit card debt. 352 00:12:47,640 --> 00:12:50,790 And then I was looking for a job I couldn't find, 353 00:12:50,790 --> 00:12:52,800 like especially when I was let go, 354 00:12:52,800 --> 00:12:54,150 it was the beginning of the school year, 355 00:12:54,150 --> 00:12:56,940 so they already had their teachers, you know? 356 00:12:56,940 --> 00:12:58,740 So instead I was like, I just did everything. 357 00:12:58,740 --> 00:13:00,600 I babysat, I tutored. 358 00:13:00,600 --> 00:13:03,480 Thankfully, I was still on unemployment for a while. 359 00:13:03,480 --> 00:13:06,540 And so I kind of cobbled together this new financial life 360 00:13:06,540 --> 00:13:10,200 where I dropped down to what I call my ramen noodle budget, 361 00:13:10,200 --> 00:13:11,820 which is like, you know, your college budget 362 00:13:11,820 --> 00:13:14,580 where you're like, I learned to do my own hair. 363 00:13:14,580 --> 00:13:16,200 You know, like I didn't go out. 364 00:13:16,200 --> 00:13:17,610 I mean, I walked a lot of places. 365 00:13:17,610 --> 00:13:18,840 I was in the best shape of my life. 366 00:13:18,840 --> 00:13:20,394 I had a car, but who had gas money? 367 00:13:20,394 --> 00:13:22,082 (both laughing) 368 00:13:22,082 --> 00:13:24,330 And so I really pared down. 369 00:13:24,330 --> 00:13:26,820 I lived with my parents for like a year. 370 00:13:26,820 --> 00:13:29,400 Then I moved in with one of my sisters, Tracy, 371 00:13:29,400 --> 00:13:30,540 who's two years younger than me. 372 00:13:30,540 --> 00:13:32,070 I slept on her couch 373 00:13:32,070 --> 00:13:34,080 because she had a one bedroom for another year. 374 00:13:34,080 --> 00:13:36,660 It took about five years for me 375 00:13:36,660 --> 00:13:40,800 to dig my way out of all of that I owed. 376 00:13:40,800 --> 00:13:42,840 I mean, I still owed my student loan debt, 377 00:13:42,840 --> 00:13:46,080 but the credit card, the house was gone, 378 00:13:46,080 --> 00:13:48,407 and I kind of at least was at a baseline of basically zero. 379 00:13:48,407 --> 00:13:49,863 - I feel like I'm starting again. 380 00:13:49,863 --> 00:13:51,030 - Yes, yes. 381 00:13:51,030 --> 00:13:52,560 And so it was not easy. 382 00:13:52,560 --> 00:13:55,740 So when people tell me some of their financial mistakes, 383 00:13:55,740 --> 00:13:56,573 I'm like, "Well, let me tell you 384 00:13:56,573 --> 00:13:58,429 about Tiffany's financial fiascos." 385 00:13:58,429 --> 00:14:01,170 (both laughing) 386 00:14:01,170 --> 00:14:03,000 - I mean, there's something to be said, 387 00:14:03,000 --> 00:14:05,100 and I think you bring a good point up, 388 00:14:05,100 --> 00:14:06,063 is that, like, 389 00:14:06,960 --> 00:14:09,510 sometimes you have to be allowed to make your own mistakes. 390 00:14:09,510 --> 00:14:13,530 - Going through that, I will never forget, 391 00:14:13,530 --> 00:14:17,220 you know, the lesson of, like, ramen noodles again, 392 00:14:17,220 --> 00:14:18,360 my sister's couch. 393 00:14:18,360 --> 00:14:20,700 It built the financial responsibility in me. 394 00:14:20,700 --> 00:14:23,340 I need it for myself, versus just, like, 395 00:14:23,340 --> 00:14:25,140 just doing what my parents said. 396 00:14:25,140 --> 00:14:27,330 - We're a lot tougher than we think we are. 397 00:14:27,330 --> 00:14:29,940 And sometimes we gotta kind of see what we're made of. 398 00:14:29,940 --> 00:14:32,580 So let's talk about houses. 399 00:14:32,580 --> 00:14:33,993 So, like, you came back. 400 00:14:34,860 --> 00:14:36,810 You weren't afraid to go and get another house 401 00:14:36,810 --> 00:14:37,950 at some point in the future. 402 00:14:37,950 --> 00:14:39,300 But you have a new rule. 403 00:14:39,300 --> 00:14:41,610 So it's called, "Is your mortgage rentable?" 404 00:14:41,610 --> 00:14:42,800 So explain that to me. 405 00:14:42,800 --> 00:14:43,710 - So I told myself, 406 00:14:43,710 --> 00:14:46,980 if I was ever gonna buy another place again, 407 00:14:46,980 --> 00:14:49,800 if I was gonna get a mortgage, it had to be rentable, 408 00:14:49,800 --> 00:14:54,257 which meant that I could get between $1300 and $1500, 409 00:14:56,220 --> 00:14:59,040 which meant that if I couldn't afford, 410 00:14:59,040 --> 00:15:01,860 my mortgage could somebody cover it if I had to rent it out, 411 00:15:01,860 --> 00:15:05,160 and at the very least, ideally try to cover my mortgage. 412 00:15:05,160 --> 00:15:06,960 So the second property that I purchased 413 00:15:06,960 --> 00:15:11,960 with my late husband, we got, it was a foreclosure, 414 00:15:12,270 --> 00:15:15,090 and it was worth about 320 at the time, 415 00:15:15,090 --> 00:15:16,860 but the bank owned it and they just wanted the money 416 00:15:16,860 --> 00:15:19,680 that was owed to them, which was about 180. 417 00:15:19,680 --> 00:15:21,363 So we got really fortunate. 418 00:15:22,920 --> 00:15:24,750 But it needed a lot of work. 419 00:15:24,750 --> 00:15:28,290 Like whoever they had, it was a mess in there. 420 00:15:28,290 --> 00:15:32,490 So, and it's funny because I used, Angie, to be like, 421 00:15:32,490 --> 00:15:35,970 we need a contractor, we need an electrician, we need... 422 00:15:35,970 --> 00:15:40,200 You know, and so we were able to fix it up. 423 00:15:40,200 --> 00:15:44,220 And now that investment of 180, we put about 180 into it. 424 00:15:44,220 --> 00:15:45,990 And so you figure that's like 360, 425 00:15:45,990 --> 00:15:49,530 but now, so that house we purchased in 2017, 426 00:15:49,530 --> 00:15:51,510 renovated like a year or so later, 427 00:15:51,510 --> 00:15:55,590 now that house is worth about 550. 428 00:15:55,590 --> 00:15:57,090 Yeah, so you think to yourself, 429 00:15:57,090 --> 00:15:59,340 like that was such a great investment. 430 00:15:59,340 --> 00:16:00,960 For example, I bought my, 431 00:16:00,960 --> 00:16:03,480 I live in a condo around the corner from the house 432 00:16:03,480 --> 00:16:07,080 after sadly my husband passed away in 2021, 433 00:16:07,080 --> 00:16:08,700 he had a brain aneurysm. 434 00:16:08,700 --> 00:16:11,130 So literally, he was here on Monday 435 00:16:11,130 --> 00:16:12,810 and saying he had like a terrible headache 436 00:16:12,810 --> 00:16:15,000 and then on Friday he was gone. 437 00:16:15,000 --> 00:16:16,530 41. - Oh, that's horrible. 438 00:16:16,530 --> 00:16:18,030 I'm so sorry to hear that. - Thank you. 439 00:16:18,030 --> 00:16:19,770 So the condo that I purchased, 440 00:16:19,770 --> 00:16:20,910 and I'm always like free with numbers. 441 00:16:20,910 --> 00:16:25,570 I purchased it for 520, 2023, it's now worth 820. 442 00:16:27,870 --> 00:16:29,370 Isn't that crazy? 443 00:16:29,370 --> 00:16:30,390 New Jersey is something else. 444 00:16:30,390 --> 00:16:35,280 So, I've been fortunate that if purchased properly, 445 00:16:35,280 --> 00:16:36,690 you have to know your market. 446 00:16:36,690 --> 00:16:38,070 And if it makes sense that yes, 447 00:16:38,070 --> 00:16:40,890 home ownership can be a conduit for wealth. 448 00:16:40,890 --> 00:16:42,900 - So, I think you bring up a really good point though 449 00:16:42,900 --> 00:16:44,430 on carrying costs, you know, 450 00:16:44,430 --> 00:16:46,380 so like, let's go back over that again, 451 00:16:46,380 --> 00:16:47,490 just so people understand, 452 00:16:47,490 --> 00:16:49,020 'cause I think sometimes people think 453 00:16:49,020 --> 00:16:50,580 it's just the mortgage. 454 00:16:50,580 --> 00:16:51,420 You know, let's talk about 455 00:16:51,420 --> 00:16:53,700 what the carrying cost of a home is. 456 00:16:53,700 --> 00:16:56,190 - So there's your mortgage, obviously if you have one. 457 00:16:56,190 --> 00:16:58,440 There are your taxes for that house. 458 00:16:58,440 --> 00:17:00,873 There's also insurance for that house. 459 00:17:01,800 --> 00:17:04,290 So for example, that house, I have a landscaper. 460 00:17:04,290 --> 00:17:07,140 They don't have a big lawn, but still the landscaper. 461 00:17:07,140 --> 00:17:10,597 Also too, because my sister has two kids, I was like, 462 00:17:10,597 --> 00:17:12,150 "Ugh, don't mess up my house." 463 00:17:12,150 --> 00:17:14,368 So I have a cleaning lady that comes every two weeks. 464 00:17:14,368 --> 00:17:15,899 (both laughing) 465 00:17:15,899 --> 00:17:16,732 - Right, right. - You know? 466 00:17:16,732 --> 00:17:17,565 I'm trying to think of what else. 467 00:17:17,565 --> 00:17:18,398 I mean, it depends. 468 00:17:18,398 --> 00:17:20,370 Some municipalities, some people pay sewage 469 00:17:20,370 --> 00:17:21,750 and garbage separately, 470 00:17:21,750 --> 00:17:23,370 but yeah, it equals about for that house, 471 00:17:23,370 --> 00:17:25,710 about $1500 a month. 472 00:17:25,710 --> 00:17:27,240 - Tell me about the noodle budget. 473 00:17:27,240 --> 00:17:29,870 When I was learning about you, Tiffany, 474 00:17:29,870 --> 00:17:31,800 I was like, I love the name. 475 00:17:31,800 --> 00:17:33,750 So let's talk about that one too. 476 00:17:33,750 --> 00:17:35,550 - Yeah, so I wrote this book, Angie, 477 00:17:35,550 --> 00:17:38,490 called "Get Good With Money" in 2021. 478 00:17:38,490 --> 00:17:40,869 And actually, the paperback just came out. 479 00:17:40,869 --> 00:17:44,310 And I talk about like the noodle budget, 480 00:17:44,310 --> 00:17:49,170 which really just is if you had to eat ramen noodles, 481 00:17:49,170 --> 00:17:52,350 meaning, if you just had to get down to the bare bones, 482 00:17:52,350 --> 00:17:54,030 I do not believe that you should live 483 00:17:54,030 --> 00:17:56,400 at your noodle budget long-term, forever, 484 00:17:56,400 --> 00:17:58,740 it's just a temporary drop. 485 00:17:58,740 --> 00:18:00,870 So let's just say you're hearing the whispers 486 00:18:00,870 --> 00:18:03,960 that they're going to be letting people go at your job. 487 00:18:03,960 --> 00:18:05,490 Well, then you might say, oh my gosh, 488 00:18:05,490 --> 00:18:08,460 you know, I was actually hired just a couple of years ago. 489 00:18:08,460 --> 00:18:09,660 I'm likely to be let go. 490 00:18:09,660 --> 00:18:11,460 Let me drop down to my noodle budget, 491 00:18:11,460 --> 00:18:14,100 which means I'm gonna let go of my streaming platforms. 492 00:18:14,100 --> 00:18:15,660 I'm gonna make sure I have food. 493 00:18:15,660 --> 00:18:17,127 I'm gonna make sure that I have a place to live 494 00:18:17,127 --> 00:18:18,690 and my medicine and things like that. 495 00:18:18,690 --> 00:18:21,450 The money that, you know, ideally you have saved 496 00:18:21,450 --> 00:18:23,730 that's coming in can stretch longer. 497 00:18:23,730 --> 00:18:27,540 So your regular life save might cost you $5,000 a month. 498 00:18:27,540 --> 00:18:29,100 But maybe your noodle budget life 499 00:18:29,100 --> 00:18:31,590 with everything cut out is 3,500. 500 00:18:31,590 --> 00:18:34,740 And so, like you temporarily live at that 3500 501 00:18:34,740 --> 00:18:35,970 until you're back on your feet again, 502 00:18:35,970 --> 00:18:37,650 and then you can go back to your 5,000. 503 00:18:37,650 --> 00:18:41,190 So it's just a temporary safeguard 504 00:18:41,190 --> 00:18:43,080 to extend the life of your savings. 505 00:18:43,080 --> 00:18:44,280 - Which is also another good point, 506 00:18:44,280 --> 00:18:47,700 'cause you can also, not only are you able to stay longer, 507 00:18:47,700 --> 00:18:51,060 but if that time, if the job doesn't go away, 508 00:18:51,060 --> 00:18:51,960 you're actually saving 509 00:18:51,960 --> 00:18:53,310 a bunch of money too. - Exactly, exactly. 510 00:18:53,310 --> 00:18:54,690 - You're adding to that saving. 511 00:18:54,690 --> 00:18:55,523 So let's go to this point. 512 00:18:55,523 --> 00:18:57,480 Like so, what kind of savings level, 513 00:18:57,480 --> 00:18:59,130 or what should they keep as a cushion 514 00:18:59,130 --> 00:19:00,060 when they're out there 515 00:19:00,060 --> 00:19:02,010 and kind of making that house decision? 516 00:19:02,010 --> 00:19:03,990 - So ideally, I mean, most people, 517 00:19:03,990 --> 00:19:05,340 this is gonna be very difficult for, 518 00:19:05,340 --> 00:19:07,980 but ideally, even if you do put your savings 519 00:19:07,980 --> 00:19:10,470 into your house, how quickly can you get back 520 00:19:10,470 --> 00:19:14,520 to minimum three months of noodle budget savings? 521 00:19:14,520 --> 00:19:15,780 So that's what's so great about it, right? 522 00:19:15,780 --> 00:19:18,090 Because remember, we're gonna drop down to it 523 00:19:18,090 --> 00:19:19,200 if we hit hard times. 524 00:19:19,200 --> 00:19:21,840 So my assumption is if you have to dip into your savings, 525 00:19:21,840 --> 00:19:23,160 you've hit hard times. 526 00:19:23,160 --> 00:19:26,370 So you multiply your noodle budget times three, 527 00:19:26,370 --> 00:19:28,173 and that's the bare minimum, 528 00:19:29,310 --> 00:19:33,120 but ideally upwards of six months. 529 00:19:33,120 --> 00:19:34,860 And I tell people, if you're an entrepreneur, 530 00:19:34,860 --> 00:19:37,200 you might want to do a year, but no more than a year. 531 00:19:37,200 --> 00:19:38,580 So I keep a year 532 00:19:38,580 --> 00:19:42,090 because I could literally have a downturn that hits us hard. 533 00:19:42,090 --> 00:19:43,860 And I'm like, okay, I need to buckle down. 534 00:19:43,860 --> 00:19:46,110 It's going to take a year for me to turn the business around 535 00:19:46,110 --> 00:19:47,370 and I've done that before. 536 00:19:47,370 --> 00:19:49,560 - Right, makes total sense. 537 00:19:49,560 --> 00:19:52,230 So, you know, so if you're thinking about 538 00:19:52,230 --> 00:19:53,760 buying your first house and you're like, 539 00:19:53,760 --> 00:19:55,500 hey, I saved up for my down payment, 540 00:19:55,500 --> 00:19:56,700 don't stop there. 541 00:19:56,700 --> 00:19:59,550 Like don't rush and buy then, wait a little bit longer 542 00:19:59,550 --> 00:20:01,560 till you get a little more cushion 543 00:20:01,560 --> 00:20:03,210 so you're not draining all your savings. 544 00:20:03,210 --> 00:20:06,510 - Because I promise you, the city or the town you live in, 545 00:20:06,510 --> 00:20:08,197 they love to say, "Oh, is that what taxes were 546 00:20:08,197 --> 00:20:09,360 "when the other person lived here?" 547 00:20:09,360 --> 00:20:11,339 Not for you. (chuckles) 548 00:20:11,339 --> 00:20:13,110 I remember I called my dad in a panic 549 00:20:13,110 --> 00:20:15,510 when I bought my condo, my first condo. 550 00:20:15,510 --> 00:20:20,510 I was like, "Daddy, my taxes went up $120 a month." 551 00:20:20,820 --> 00:20:23,475 He said, "Welcome to the real world." 552 00:20:23,475 --> 00:20:25,500 So you wanna have that buffer 553 00:20:25,500 --> 00:20:27,810 because you just don't know what comes up. 554 00:20:27,810 --> 00:20:28,740 You know, people buy a house 555 00:20:28,740 --> 00:20:30,570 and the boiler goes out, then what? 556 00:20:30,570 --> 00:20:32,550 So you want that buffer, mm-hmm. 557 00:20:32,550 --> 00:20:35,250 - As the budgetnista, you've had women tell you, 558 00:20:35,250 --> 00:20:38,610 I went from homeless to homeowner because of you. 559 00:20:38,610 --> 00:20:41,040 What did you teach them that made the difference? 560 00:20:41,040 --> 00:20:43,020 - So, well, I think in the beginning, 561 00:20:43,020 --> 00:20:46,440 it was just, it was possible to do. 562 00:20:46,440 --> 00:20:48,030 I remember the first time it happened, 563 00:20:48,030 --> 00:20:49,927 a woman wrote me and said, 564 00:20:49,927 --> 00:20:54,150 "I'm currently living in a shelter and I am working." 565 00:20:54,150 --> 00:20:55,980 It was kind of like the first time I really, 566 00:20:55,980 --> 00:20:58,350 really felt like, wow, you could be working. 567 00:20:58,350 --> 00:21:00,360 It's still not enough, you know? 568 00:21:00,360 --> 00:21:01,770 And she said, I am working. 569 00:21:01,770 --> 00:21:04,920 And at the time I had these free challenges every January. 570 00:21:04,920 --> 00:21:07,650 It would be like anywhere from a week to like a month 571 00:21:07,650 --> 00:21:09,090 where it's a financial challenge 572 00:21:09,090 --> 00:21:11,610 where I would walk you through either budgeting or savings, 573 00:21:11,610 --> 00:21:14,640 or even we had a home buying edition of that challenge. 574 00:21:14,640 --> 00:21:16,920 And she said, "Do you think I should do the challenge? 575 00:21:16,920 --> 00:21:18,360 'Cause I don't really have much money." 576 00:21:18,360 --> 00:21:19,950 I said, "Well, one, it's free. 577 00:21:19,950 --> 00:21:22,590 And even if you do it just on paper, 578 00:21:22,590 --> 00:21:25,800 like you can't save, you can't do the things just yet." 579 00:21:25,800 --> 00:21:27,570 I said, "Because, you know, 580 00:21:27,570 --> 00:21:29,310 unless you know how to do something different, 581 00:21:29,310 --> 00:21:31,140 you never will do anything different." 582 00:21:31,140 --> 00:21:32,640 So I encouraged her to do that. 583 00:21:32,640 --> 00:21:35,820 And then Linda, my best friend that I was talking about, 584 00:21:35,820 --> 00:21:38,670 she has her master's in social work. 585 00:21:38,670 --> 00:21:40,530 She's a certified social worker. 586 00:21:40,530 --> 00:21:43,320 So I asked Linda, what are some tools and resources 587 00:21:43,320 --> 00:21:46,050 just in the state and city where she lived 588 00:21:46,050 --> 00:21:46,980 that she could look into? 589 00:21:46,980 --> 00:21:49,740 So Linda gave me a list of them and I shared them with her. 590 00:21:49,740 --> 00:21:53,040 And this is a woman, just via literally Facebook message, 591 00:21:53,040 --> 00:21:54,300 which is messaging back and forth. 592 00:21:54,300 --> 00:21:55,410 And then I didn't think about it. 593 00:21:55,410 --> 00:21:57,510 I hadn't heard from her for some years. 594 00:21:57,510 --> 00:21:59,580 And then I got a ping one day 595 00:21:59,580 --> 00:22:01,530 and I could see the old messages. 596 00:22:01,530 --> 00:22:03,480 She said, "Tiffany, I don't know if you remember me," 597 00:22:03,480 --> 00:22:04,740 so I looked at the old messages. 598 00:22:04,740 --> 00:22:05,790 I was like, "Oh, that's right. 599 00:22:05,790 --> 00:22:07,380 The young woman in the shelter." 600 00:22:07,380 --> 00:22:09,240 And she's like, "I just want to say thank you so much. 601 00:22:09,240 --> 00:22:11,340 I'm closing on my home today." 602 00:22:11,340 --> 00:22:13,317 Oh my gosh. - Oh my gosh. 603 00:22:13,317 --> 00:22:15,042 I love that. - I was like, what? 604 00:22:15,042 --> 00:22:15,996 'Cause I'm a big crybaby. 605 00:22:15,996 --> 00:22:17,193 (both laughing) 606 00:22:17,193 --> 00:22:19,320 So I gave her my number, I was like, "Call me." 607 00:22:19,320 --> 00:22:22,290 And we cried like babies on the phone. 608 00:22:22,290 --> 00:22:23,380 And I was like, "I'm so proud of you." 609 00:22:23,380 --> 00:22:26,020 And I literally said, "What did I say?" 610 00:22:26,020 --> 00:22:28,080 And she said, "No, Tiffany," 611 00:22:28,080 --> 00:22:31,192 she's like, "One, you gave me that there was hope 612 00:22:31,192 --> 00:22:32,767 "that I could do it. 613 00:22:32,767 --> 00:22:34,687 "Then you gave me the step-by-step tools 614 00:22:34,687 --> 00:22:37,687 "about here is how you budget and start to save 615 00:22:37,687 --> 00:22:41,137 "and manage your debt and pay down your debt 616 00:22:41,137 --> 00:22:42,270 "and manage your credit." 617 00:22:42,270 --> 00:22:44,827 And she was just like, you know, "Slowly but surely, 618 00:22:44,827 --> 00:22:46,297 "I started to make more money, 619 00:22:46,297 --> 00:22:47,707 "but I didn't forget how to budget, 620 00:22:47,707 --> 00:22:50,017 "how you showed me how to save, how to set aside, 621 00:22:50,017 --> 00:22:52,350 "how not to live over my means." 622 00:22:52,350 --> 00:22:55,200 And she signed up for a program 623 00:22:55,200 --> 00:22:57,090 where they help with down payments. 624 00:22:57,090 --> 00:22:58,867 And she said, "Because I'd been really consistent 625 00:22:58,867 --> 00:23:01,740 "and my credit score was good, I qualified." 626 00:23:01,740 --> 00:23:03,637 And she's like, "You changed the trajectory of my life 627 00:23:03,637 --> 00:23:04,920 "and my children's lives." 628 00:23:04,920 --> 00:23:06,960 And so she was just the first. 629 00:23:06,960 --> 00:23:09,090 That's happened at least three or four times after that, 630 00:23:09,090 --> 00:23:10,680 it's just blown my mind. 631 00:23:10,680 --> 00:23:11,513 - That's fantastic. 632 00:23:11,513 --> 00:23:13,920 And you have done a wonderful job, 633 00:23:13,920 --> 00:23:17,490 you know, taking the shame out of not being in control 634 00:23:17,490 --> 00:23:20,220 of your finances and being willing to kind of seek help. 635 00:23:20,220 --> 00:23:23,280 So I think leading by example as you have 636 00:23:23,280 --> 00:23:25,590 and being so open about your experiences, 637 00:23:25,590 --> 00:23:28,410 I think that tells people a ton. 638 00:23:28,410 --> 00:23:29,460 Last question I've got here for, 639 00:23:29,460 --> 00:23:32,310 what's the biggest mistake homeowners make? 640 00:23:32,310 --> 00:23:34,440 Not because they don't know better, 641 00:23:34,440 --> 00:23:36,270 but because life gets in the way. 642 00:23:36,270 --> 00:23:39,690 - I think the biggest mistake that homeowners make 643 00:23:39,690 --> 00:23:43,740 is buying a home for just who they are right now, 644 00:23:43,740 --> 00:23:45,390 not who they might grow into. 645 00:23:45,390 --> 00:23:47,280 - Oh, that's a great point. - So I'll give you an example. 646 00:23:47,280 --> 00:23:51,960 My podcast partner, when I had my podcast, "Brown Ambition," 647 00:23:51,960 --> 00:23:54,150 Mandy, she bought this cute little house, 648 00:23:54,150 --> 00:23:55,410 her and her husband. 649 00:23:55,410 --> 00:23:57,090 And it's like, I think I want to say 650 00:23:57,090 --> 00:23:58,440 it's two or three bedrooms. 651 00:23:58,440 --> 00:24:02,130 And at the time they had one son, one rambunctious son. 652 00:24:02,130 --> 00:24:03,240 It was really cute. 653 00:24:03,240 --> 00:24:04,920 And then the pandemic happened 654 00:24:04,920 --> 00:24:08,010 and they were able to refinance for like two, 3%. 655 00:24:08,010 --> 00:24:09,570 Amazing! 656 00:24:09,570 --> 00:24:12,750 And then they had a second son, two boys. 657 00:24:12,750 --> 00:24:13,980 Oh my gosh. 658 00:24:13,980 --> 00:24:15,960 - Yeah, and they're working out of their house 659 00:24:15,960 --> 00:24:18,150 and they're, and- - And she's like, 660 00:24:18,150 --> 00:24:20,200 but where are we going to go? We have 3%. 661 00:24:21,840 --> 00:24:23,670 So she's like, if I would have known 662 00:24:23,670 --> 00:24:25,560 I would have gotten, you know, 663 00:24:25,560 --> 00:24:27,300 like they knew they were going to grow their family. 664 00:24:27,300 --> 00:24:29,010 She's like, I wish we would have gotten a house 665 00:24:29,010 --> 00:24:30,570 that made sense for where we're going 666 00:24:30,570 --> 00:24:32,340 and then locked in that 3%. 667 00:24:32,340 --> 00:24:34,650 And so, I think that's one of the biggest mistakes 668 00:24:34,650 --> 00:24:38,550 because, you know, you think like, oh, you know, 669 00:24:38,550 --> 00:24:40,770 this two bedroom is going to be enough. 670 00:24:40,770 --> 00:24:43,110 What, are you planning to get married? 671 00:24:43,110 --> 00:24:45,870 Are you trying to have additional children? 672 00:24:45,870 --> 00:24:47,940 So just keeping that in mind. 673 00:24:47,940 --> 00:24:50,040 - So Tiffany, if people want to learn more 674 00:24:50,040 --> 00:24:53,400 about all of your great advice when it comes to budgeting, 675 00:24:53,400 --> 00:24:54,233 where should they go? 676 00:24:54,233 --> 00:24:57,060 - So I am the Budgetnista on all the platforms 677 00:24:57,060 --> 00:25:00,000 from LinkedIn, YouTube, Instagram, TikTok. 678 00:25:00,000 --> 00:25:03,810 And if you'd like to get a copy of my new paperback, 679 00:25:03,810 --> 00:25:05,220 it's out on paperback now, 680 00:25:05,220 --> 00:25:08,760 my New York Times bestselling book, "Get Good with Money." 681 00:25:08,760 --> 00:25:12,723 It's available at getgoodwithmoney.com. 682 00:25:13,860 --> 00:25:15,030 - It's very fun, Tiffany. 683 00:25:15,030 --> 00:25:17,430 I really enjoyed it. - Thank you, Angie. 684 00:25:17,430 --> 00:25:19,680 - Here's what I'm taking away from my conversation 685 00:25:19,680 --> 00:25:20,610 with Tiffany. 686 00:25:20,610 --> 00:25:22,350 A house isn't just a mortgage. 687 00:25:22,350 --> 00:25:26,220 It's the taxes, the insurance, the landscaper, 688 00:25:26,220 --> 00:25:29,340 even the boiler that goes out the week before you move in. 689 00:25:29,340 --> 00:25:32,040 But the mortgage is only one piece of the puzzle. 690 00:25:32,040 --> 00:25:35,160 What's important is to understand the full budget. 691 00:25:35,160 --> 00:25:37,410 It's not actually about renting, 692 00:25:37,410 --> 00:25:40,530 it's about not letting a house own you. 693 00:25:40,530 --> 00:25:43,740 The mortgage you can carry, the cushion you don't drain, 694 00:25:43,740 --> 00:25:46,350 the decisions you make on purpose, 695 00:25:46,350 --> 00:25:48,870 that's what owning it actually means. 696 00:25:48,870 --> 00:25:50,250 Thanks for watching. 697 00:25:50,250 --> 00:25:52,350 And if you enjoyed it, please subscribe 698 00:25:52,350 --> 00:25:54,480 and share it with someone who needs it. 699 00:25:54,480 --> 00:25:57,000 The biggest thing I took away from Tiffany 700 00:25:57,000 --> 00:25:59,400 was that shame shields solutions. 701 00:25:59,400 --> 00:26:01,170 We have to talk about money. 702 00:26:01,170 --> 00:26:04,710 Talk about it with your partner, your kids, your friends. 703 00:26:04,710 --> 00:26:07,110 That's how you actually own it. 704 00:26:07,110 --> 00:26:10,107 Until next time, I'm Angie Hicks with "Own It."