The hosts of Black Girl Podcast discuss money moves with ‘The Budgetnista’ Tiffany Aliche
In The Know and the women behind Black Girl Podcast have teamed up to bring you a special video series, Enter the Chat, where we’ll be discussing topics that range from dating and budgeting to self-care.
Unpacking finances is an ongoing task for many. In this episode of Enter The Chat, the women of Black Girl Podcast break down budgeting with “The Budgetnista” and finance guru Tiffany Aliche.
Aliche explains that her Budgetnista nickname comes from her family, but finance is in her blood. Aliche’s dad taught her and her sisters about finance when they were children. She says that her father was a chief financial officer and she grew up learning how to budget and save from a young age.
“It wasn’t until college that I realized most people didn’t get that,” Aliche tells the group. “My roommate had debt collector’s calling the room and I was like ‘what?’ That was because her mom was struggling and her mom was opening up credit cards in her name. So I would go home and ask my dad for advice and I would go back to school and give her advice.”
One thing Aliche notes is that even though no one could predict a pandemic, they can prepare for a recession. Aliche explains that recessions happen every 10-15 years.
“If 2020 found you financially unprepared, know that in 10, 15 years, we’re going to be back here, but will you be back here? So start preparing now. Step one is always ‘you have to spend less than you make.'”
Aliche says that if you’re someone who doesn’t earn enough to spend less than you make, there are ways to pivot. One of them? Ask for a raise if you feel ready for that. Go into that discussion prepared with proof that you’re putting in the work to the higher-ups
“Your ‘go me’ folder should directly show how much you’ve saved or made the company,” she says. “Then you’re not asking for a raise, you’re like ‘so according to my go me folder, I made y’all $100,000 last year.’”
Need It, Love It, Like It, Want It
Scottie chimes in to ask what the biggest misconception is about budgeting. Aliche explains that there’s a false narrative of budgeting equating to depriving oneself.
“At the end of the day, your budget wants you to comfortably be able to afford the things. Just because you can pay for something, doesn’t mean you can afford it,” Aliche says.
There are four things that Aliche says you should ask yourself before ever spending a dime. 1. Do I need it? 2. Do I love it? 3. Do I like it? 4. Do I want it?
She goes to to clarify, “Needs are ‘if I don’t get this thing, will I be able to maintain my health and safety?’”
One thing that Aliche says that people often disregard are the things they love. For Aliche, the “loves” are the things that you’ll still enjoy at least a year from now.
“This is how I gauge it: If you had Oprah’s bank account, what would you do or do more of?”
On the flip side, Aliche says that likes and wants are fleeting. Plus, she says that they’re essentially instant gratification, and you won’t even remember it, like your breakfast.
How And Where to Save Money
Bexx pitches a question about where to put your money and how to organize it.
“How do you split your money as far as a checking account and savings account for like expenses, luxuries, safety nets?” Bexx asks. “Also, is there really a need or a purpose for a savings account given the fact that interest rates are practically nonexistent?”
Aliche admits that she has four different personal bank accounts. Two are checking accounts, one being strictly for bills, and the other two are for savings.
“The bills account gets its money from this deposit account. The only way out is that the bills account has to pay a bill,” Aliche states. “I had my bills automated, so that way I don’t have to worry about it. All I have to do is make sure that every two weeks my money is sitting in my bills account.”
One of her savings accounts is an emergency account for when, in Aliche’s words, “Sh*t hits the fan.” She also says the emergency account should have at least three months worth of living expenses saved.
“It is a safety net that when something happens, you instantly have a soft place to land and how to figure it out in 3-6 months.”
Tiffany Aliche On Saving Big
The fourth account, per Aliche, is for your big spending. This includes investments, buying a home, a car and other life event purchases.
Alisha says that she is someone who has managed to save a lot of money.
“What advice would you give to someone who is currently in the pandemic saving all this money, but not really sure what to do with it, whether keeping it in a savings account or continuously pouring into that account and just waiting to see what happens essentially when this is all over?”
Letting your saved money sit where it is is fine according to Aliche. Since the future is unclear, the three months of living expenses should have nowhere to go.
“That three months is supposed to sit there, bored,” she explains. “Let it sit there because we don’t know what’s going to happen. I don’t care how dope, how fly, everybody needs to have that cushion.”
For the full episode, watch the video above and follow Black Girl Podcast on Instagram, Facebook and Twitter. You can also shop any of the Black-owned pieces in the set design on Enter The Chat from LIT BKLYN, THNWBLK, Signature Petals, Crackflower, Modern Pearl Primus Poster and “Identity Crisis” Canvas Print.
If you liked this story, you might also enjoy LIT Brooklyn founder, Denequa Williams Clarke, chats business with the hosts of Black Girl Podcast.
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