You make money. You place it in your bank. You spend less than you make. Stay in the plus column and life should be just fine.
This was my understanding of finance until a high school economics class opened my eyes to the financial world around me— a world that I had no idea existed. That one eye opening course led me to major in International Economics in college. It was a path that led me to an understanding of supply & demand, margins, gross domestic product and, at least on an intellectual level, debt.
In practice things were slightly different.
After graduation I went to a dealership to purchase my first car. Being young and naive, I thought I’d have no problem. I was a recent college graduate, had a degree in economics, and had next to no debt. Of course they’d give me a loan, right? However, I was told that my credit score was too low because I had no real credit history. If I wanted a loan, and if I wanted a good rate I would have to cosign with someone.
The next day I walked back in, but this time behind my mother.
I was furious.
I did everything I could to pay off that loan as quickly as possible, and did so in half the time. Sometimes anger can be used positively, I guess.
I swore I would never use that lender again, though, and to this day I’ve left my mother’s name on the title as a reminder. (Seriously, browse through the pictures on my phone and you’ll see a picture of it.)
Afterwards, I became infatuated with my credit score. Obsessed even. I took advantage of 0% interest incentives and opened five credit cards up, each right after the other, making sure to stay below the 30% threshold to increase my credit score. It worked. In little time, my credit soared to a whopping 826. I remember that moment well, too. Look on my phone, and right after you pass the picture of my car’s title, you’ll see a picture of my computer screen.
In short, I played the game and won. I was great at managing debt, but couldn’t help but wonder if that was how it was supposed to be? Sure I had a great credit score, but I also had lots of debt. Even in keeping my balances reasonable, I owed tens of thousands of dollars across multiple cards. Sure I was managing it. Sure I was playing the game. But was I winning?
I thought back to my grandparents. My grandmother would balance her checkbook after every purchase. She would clip coupons from the local paper for extra savings and my grandfather would tally the total before they went to the grocery store. Money in a Ziploc bag, they shuffled through the grocery aisles and gathered everything up they had on their list. When they finally got to the counter, they’d practically toss the Ziploc bag at the cashiers and try to walk out without waiting. But this was because they knew what they were spending. They were never off. Not even a little bit. Unsurprisingly, cashiers never ceased to be amazed.
As amazing as this was, know that my grandfather could barely read.
I remembered this scene time and time again every month when I made my monthly payments. You make money. You place it in the bank. You spend less than you make. Stay in the plus column and life should be just fine.
I made a commitment one night to eliminate my debt, and ironically at that same moment decided to also go to graduate school and pursue an MBA. (Because graduate school is always cheap, right?) I was going to be professional in the world of finance.
Practically living in the library, I grilled my professors every class, read books that weren’t even assigned, and attended every single seminar they’d let me into. I even upheld my promise to myself and eliminated my debt while completing my education. Soon after graduation, I went to work.
I found my true passion, though, in helping my friends and family make sound financial decisions. I became the financial adviser they needed but could not afford.
Soon after I founded Kinsfolk Financial to help families get rid of debt and get their finances in order. I wanted to make financial guidance affordable for everyone. To breathe freely, without the burden of debt, is a fundamental right everyone should have.
My name is Chaunci Witherspoon. Please join me in the journey towards your financial freedom.