June 15, 2022 • 37 mins
Dyana is a black single mom of 2 beautiful kids who built a $76k net worth, a 6 month emergency fund and paid off all her debt without ever making a six figure income. In this podcast we talk about the strategies she used to get out of debt and stay on track to build a cash flow positive business.
Learn more about her here - https://www.businessinsider.com/strategies-pay-high-debt-low-income-2022-6
#entrepreneur #podcast #businessinsider #odogwu
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Connect with Dyana - @MoneyBossMama
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Everyone, welcome to another exciting episode of
(00:02):
the bulletproof entrepreneurs podcast.
My guest today is Diana, King.
She's also known as the money boss.
Mama on Twitter right down.
That's right.
All right, so I have done here today because she
has a very interesting story.
I saw on Twitter and I
would love for her to
talk about herself and what she does.
(00:22):
So let me read out the title for this podcast today.
She's a single black mom of two who built a 76
thousand dollar.
Worth and a six-figure and I'm six months.
Emergency fund.
I'm paid off all our debts without ever making a six-figure
income.
She's here to tell us exactly how she pulled out of
because
if you're building the 76k networth and
(00:45):
six months, emergency fund.
Most people will think, you're making at least well
into the six figures or you
have like a couple side hustles or you married rich or you
got an inheritance or something like that, but
apparently she didn't have Any of all that, she
came up from the bootstraps and
built all this, and she's here to teach us exactly how
(01:06):
she did it.
So with that said, Diana, welcome to the podcast
today.
Yeah.
Thank you for having me.
Awesome.
Awesome.
So that I tell us your story, I know
you were in debt.
I know you struggled financially and
then you also you put eventually put yourself out of that.
So walk us through your origin story if you will.
Yeah, so when it all started with my first did, so, I
(01:30):
was 18, you know, I came from a single-parent
household, my parents
divorced, when I was in the third grade and
by that time I was living with my mom.
And so, when I turn 18, I decided it was going to
be a very good idea to
go out and get a new car.
So I was tired of driving my little hoopty because that's
(01:53):
all, you know, my mom could afford to
give me and so I decided that I work hard.
Even though I work as a Sonic CarHop in fast food, I
was gonna
go out.
I'm a big girl.
I'm 18 now and I'm
going to go get me a new car because I Define
financial success by what you have, right?
(02:15):
And so I figured if I get this new car people are
going to
think that I'm a lot more well off than I really
am.
And so turns out, I knew nothing about the process.
I didn't know anything about a credit score.
I didn't know anything about an interest rate and so
Oh, I
got hit with a very large interest rate because my mom's
credit wasn't the best.
(02:36):
I didn't have any credit.
So she was the only one that would co-sign for me and
it
wound up that my auto loan payment was taking one of my
paychecks per month.
I got paid twice.
Yeah, and one of them had to go to my auto
loan.
And so when I it didn't become a really big problem.
What car was it?
(02:56):
It was a Volkswagen Passat.
It was brand new Volkswagen Passat Bradley, but it
low mileage.
Okay, so it had like it was like the luxury kind leather
push to
start really know if I was feeling myself until I got pregnant
with my first born in life, kind of like to
(03:18):
shake me, right?
How am I supposed to
take care of myself and my child
and I'm still having to give up one paycheck per month.
Mmm, and so, it wasn't until I I got really, really
uncomfortable and I
realized like I really cannot afford this that I started to
research ways
in which, how can I get rid of this car started with
(03:41):
the auto loan.
I went down this Rabbit Hole of Google.
A lot of people seem to
think that to be financially successful or or have
spending Freedom.
You had to be, you know, like the finest Bros. You have
to know the lingo, you have to be very good, very smart,
but
basic person, Arkansas, I don't know all the big words simplify
(04:04):
it in my head before I
could do it.
Right.
So basically I went down this Rabbit Hole Google trying to
figure out how to lower my auto loan and it
feels out these words that you have no idea what they are.
So you have to go and research
those.
So what's an example of one of those words that you?
So that's how I learned about interest.
Okay?
Oh, really?
(04:25):
Yeah.
I'm not no idea for is that I for the First
time I went in and I
looked at my balance for the first time since having this auto
loan and I'm
like, why is my payment not?
Why is my balance still high?
My payment isn't going anywhere.
200 dollars of that 495 payment was going to interest.
(04:47):
And so I started slowly building that financial literacy.
That way going down this Rabbit Hole of figuring out, what I
don't know.
And the more I realized what I didn't know that.
Up like this Pathway to
actually being able to teach myself what these things meant, and
then going into developing a strategy to
(05:08):
get the debt paid off.
So what were some of those steps you have to take?
Because like you rightly said, know, if 50 percent of your paycheck
is going to
pay the car by means you were making.
I'm just saying like about the thousand dollars roughly at the
time, right?
So what were some of the steps that you took?
Because obviously now I mean, 2012 is like 10 years away.
(05:30):
You kind of crawl out of it.
So how did you start?
So when did you actually take like a financial seminar
class or
one of those type of things and
how did you start crawling out of the debts?
So I came from the University of Google, I'm self-taught, but
the way
that I started first.
I always tell people, it has to be your mentality.
(05:52):
You got to start with that and you got to reach that
place where you're so sick of being uncomfortable that it forces
you to
remain consistent.
Stand because a lot of us start, right?
And then something happens if not thing as quickly as we wanted
to.
We feel like we don't have enough money and
then we quit and we don't realize if we just stayed
consistent, you were going to
make some progress.
(06:13):
It just may have taken a while.
And so after I got my mentality because I
started first once before and I quit I was like, I'm
not quitting this time.
If I keep going, something's going to
break.
I'm going to have a breakthrough and then it went to
Budgeting.
Yeah, I was that person.
That was like, I don't know where my money is going.
(06:34):
So I had to go find it and the
first budget that I made my expenses, did exceed my income.
And that's when I learned that, I was paying out a
lot more than what I
was bringing in.
So of course, discipline has to come in.
You've got to make the sacrifice if you really want this.
And so I had to let certain things go or
a lot of things go, obviously, since I wasn't a high
(06:58):
earner, And so nails, hair.
All of that, the little little treat.
Yes.
That had to go all of that to
go.
I got my kids clothes from the thrift store like consignment sales
and Goodwill.
I was determined to get this debt paid off and
(07:18):
one thing I will say that really accelerated my journey as well.
That a lot of people don't see it as an opportunity
is extra income.
Like if you could tax refund What are you doing with that
tax refund?
That's a way in which you can leverage and
make up for lost time.
So what I would do is like a 70-20-10 allocation method, just
(07:41):
depending on what was my main goal.
So if it was dead, 70% of that 12 debt 20% went
to savings
and then 10% I just used for personal fun.
And that way, I got to
enjoy little bit of that money, but
90% went to something that was moving, the needle forward, and my
life.
Tax refunds were only about 23-thousand dollars, but
(08:04):
still, that helped me to
make progress a lot faster.
Because even though I made this lump sum payment
I would still
make my regular payments.
So was like, I paid it up for six months and
then just left it alone.
I learned that the hard way and interes
is still going to eat you alive.
So I would pay it up and
then I would make my regular payments that way, extra 10, 15
(08:26):
dollars because that's
all I had.
And then as the Dead Dwindle?
What I learned was that that puts more money in my budget.
So if I could get rid of this lower this lowest balance
credit card, once that was done that put an extra 50, 60
dollars that I could apply to my
other debts and it started to snowball method.
(08:47):
Yes, it took four years, but I
was still able to do it without making six figures.
So in those four years, you literally just like focus on the
dead cut down on things like like you said, Your head Nails,
make up going to
through.
So that's not something like a real period of pain because
although group
(09:08):
going from like no showing everybody or a baller,
getting the leather option Passat and everything
to like doing it.
Like I can assume you were cooking at home.
I'm not eating out and
all those that I was something like a real solid period of
pain.
Do you think like, most people would want to subject
(09:28):
themselves
to that kind of Pain.
Because you first of all knew that hey, if you don't
get out of this that probably be no way out for you.
Yes, I saw it as that just that if I don't
do this now, there's literally going to
be no way out for me.
If I don't take on this little bit of motivation and
optimism
that I have and kind of work with that.
(09:51):
There's a there's no way out and
then when I realized that, I was the blueprint for my children
like they were watching me, kids may not do as you say,
but Do
as you do.
And so these two kids are on me and that
that fueled and kept me, consistent within these four years.
And now, yes, I did cut out a lot.
(10:12):
I don't expect other people to
have that same level of discipline and dedication
as me, but for me, I saw the vision I saw the
angle and
when whenever I have that Vision, I'm willing to
do whatever you get to it.
And so that all of nothing mentality.
Really did help me and I
will stay with my credit card debt.
(10:34):
One thing that I started realizing through.
The University of Google was that there was this world of side
hustling, right?
And so what I did was I made a list of my
for skills.
I was like, okay what skills do I have?
Because going into it.
I didn't feel like I had anything to
offer but Ronnie was always something that I enjoyed.
(10:54):
So I again riding okay writing and so I
actually went A cause for writing to, so I'm
like, well, what can I do with this writing?
Because everyone was like, can you help me with my paper?
Could you help me proofread?
And so I started, I went to Google
and said how to make extra money writing and it
came up with freelance writing and so I
(11:16):
would find Opportunities online to
write for other people.
And then when those clients you did a good job and they
like their work yet.
They like your work, they become recurring customers and
make 22.
Four hundred dollars a month because I
realized this extra $30 towards my credit cards wasn't going to
cut it.
I'm extra money.
(11:38):
And so I would freelance.
When my daughter went to sleep
when my kids were sleeping and
then on the weekends and
sometimes it's time-consuming, but that
two to four hundred dollars.
Obviously it helped me break ground when it came to the credit
cards
and it helped me pay it off faster as well as transferring
my balances 20.
(12:00):
With It intro, a PR card, so no interest extra money.
Knocked it out a lot faster.
Good good.
So now let's talk a little bit about that side hustling because,
you
know, if you're reading the news watching, you see that, you
know, inflation is going Sky High.
So in as much as people might be trying to
get out of debt, things that posting more food is costing me.
(12:21):
My life is generally cost in here, and
then side hustling, you found clients and
all that.
So for someone who had a full-time job and I
started hustling nights and weekends.
Could you walk us through some of those steps?
You took to like find the exact side hustle.
how did you apply?
(12:42):
How did you find the right person?
all those type of little ABCDE steps that if somebody
listening to this
today, says Bow.
Wow, I think I could also do a Diana's doing.
Let me go follow.
This roadmap that she laid out on.
Let's see how I can get to the same result.
(13:03):
Yeah.
And so the simplest way to
do it, I would say first of all, right out your skills.
Don't think of it in your head, make a bulleted list
of what you're
good at that you could possibly monetize.
And then from that list, right out how you
can monetize each skill depending on which one stands out
(13:24):
the most to you
that You really feel like you could be consistent with because
if you're like me, you're a single parent.
You're already stretched thin, right?
And I know that the idea of side hustling can turn a
lot of people off because you're
like, how am I finding the time to
do this?
And so you want to make sure that whatever you do is
going to
be worth the time that you're putting in.
(13:45):
You don't want to
put in four hours and you
only made 10 dollars you don't want to
go that route and then depending on, whichever wanted to skills
that you really feel.
You can monetize.
It's a simple web search.
We literally have the world at our fingertips now, with the internet
and so you
can go online depending on your skill and
(14:06):
look at how to monetize those skills.
And there are a lot of job boards that I found that
are online for even if it's just not freelance writing but
just Freelancers in general General.
It's like yeah fiber that you could literally sell
your skills on and
then when you get those clients You do a good job.
They're going to want to work with you again, because you've
(14:28):
proven to them that you have high quality work.
And so you can make online portfolios that list out your skills.
Any examples of the work that you have.
That's what I use.
Like an online portfolio for my writing.
So when using online portfolio not a website, just like static page
or whatever.
(14:50):
It's like a it's like a static page.
Okay.
Website that I use, right?
Right now with Wix or
yeah, those type of things.
It's like instead of an in paper resume its digital resume.
Okay, and link your pages to and I had a little blog
at that time too.
(15:10):
So I anything that I could use I was linking into it
just so I
can add some proof in the beginning and
still I until I started to
get the proof from the client work that I had.
Okay?
Good.
So, how long did you do that up until you build the
76k networth?
Because now you spent four years digging yourself out of the temple,
(15:34):
right?
So now I believe you have side hustling in place.
You have your daytime nine-to-five job, we please.
Now.
How did you go?
And now expand the pie to, you
know, socking away 76k whether it's
in, your 401k Ira or stocks
or whatever it is.
Yeah, so I will say with the side hustle.
(15:56):
It helped me pay off that credit card debt faster, but it
really didn't help with the network part.
Well, I guess it did because the
lower the debt, the higher, your, the more, your assets
are going to
be able to shine in their entirety.
So I, my journey did not come without many, many ups and
downs.
So, let's hear some of the awesome down.
(16:17):
And so I wanted to dance like four more times during my
those four years.
Oh, wow.
When I got It knocked on my, but I
had to pick myself right back up.
And that's why I said it's very important to
start with your mindset.
Like I'm going to
do this and I'm going to stay consistent.
Otherwise when life hits you you're going, you're going to
(16:38):
quit and everything that you've built up to that
point.
You're going to lose out on.
And so whenever I got pregnant with my son, a few months,
after I started my debt, free Journey.
Here Comes childcare again.
I find him rid of childcare got pray.
It now here comes childcare maternity leave and
all of that.
So once the my life happened life happen, and
(17:00):
so when my credit card debt got manageable, I didn't use
the funds from that side, hustle to
build my maternity leave fun because I
wasn't going to get paid in my entirety.
And also I used it to
side hustle.
What I would need to
make up for childcare.
So I need about two hundred extra dollars to
keep my debt payments.
The same.
(17:22):
I wanted to Oh, I'm I set a goal and a
year
to pay off my my last credit card and my auto
loan to pay it off in its entirety.
And so to keep my debt payment, the same, I had to
side hustle for that extra money.
So that my son's Child Care didn't eat everything.
So, I moved out of my apartment to a
(17:43):
little crappy apartment.
At the end of the lease that saved me $120 and
then it came with free water.
So that saved me money too.
And so based on my savings.
I'm like Is what I need to
keep my debt payment.
The same that I can get out of this crappy apartment within
a year's time.
And once again going back to you
being so uncomfortable.
(18:03):
You leaving yourself?
No choice, but to stay consistent.
I was tired of living with roaches.
And so that was all I needed to
stay consistent on that paid off my last credit card, paid off
my auto loan, and
got the heck out of there to a
better apartment.
And then after that, the thought hustling for the freelance writing.
I let that go because now I
(18:25):
don't have those two payments taken from my pay.
I've got extra money in my budget now.
Okay, so you did some downsizing and
then, use the filler in to
make up money for your kids screaming, but
back to the 76k.
So how did that come about?
So that really started to
(18:46):
take off the last year and a
half?
Okay.
A debt free Journey.
Okay.
So I was always kind of contributing to my
401 k. That is the book, the bulk of my net worth.
And so Since I don't have any debt or liabilities
taking from these assets, they can just sign in their entirety.
(19:07):
So the bulk of it is 401K.
I'm at percent now that I'm contributing to that
then I have my Roth IRA that I set up last year
and
then I put the most the majority of my extra money towards
my Roth IRA and I
started investing in single stocks first before the Roth IRA
(19:28):
or anything else like that a little Go backwards, but I
have single stocks shares and
single stocks that I have also.
So with me, it was a very simple game plan.
I knew that the more that I pay off these debts the
higher my net worth will be and
so now I don't have any debt.
(19:48):
My income mostly goes towards my Roth IRA and my
401k.
So how much are you making in this year and a
half that you were able to?
Because you said you never made Six figure income.
So, what was your annual income?
This point in time?
I started my journey at thirty two thousand dollars.
(20:09):
Okay.
So about 15 dollars an hour and
then I paid off all of my debt and
2020 the worst year ever for a lot of people, but it
was the best for me because stimulus
checks are coming in.
I have my incentive, who's got, sobered up to
dead, and to my investments to and I would sell my PTO.
(20:30):
Go to to help me fund my investments and my dad.
What do you mean?
So, a PTO seal back, some companies allow you to
sell back.
Unused PTO.
Okay?
For my company, anything over 80 hours.
We can sell back.
So if I had 200 hours of PTO, I could sell back
(20:51):
120 and
get that act.
Oh perfect.
Yeah, and so like I was saying when you're
so dead set on a goal, you're going to
see opportunities.
Yeah, so yeah, so you're finding money within like what you
are.
That's what everyone like having to do too much ice cream.
I'm finding.
I'm literally looking at my situation and I'm
(21:13):
going in with the mentality of, how can I make this
work?
Not, this is why it can't work.
No, how can I make this work?
And I'm finding opportunities and day-to-day things
that I didn't see the opportunity and because I'm
that focused on getting there.
So you started from 30 to them
by 2020.
How much?
Yeah, so by 2020, I was at about 55,000.
(21:36):
Okay, and that included also making a little money through my Instagram
page by this time.
So it was about 50,000 for from my day job and
then I had 5,000 that I made from Instagram.
And so that was what I ended the debt free Journey with.
Now.
(21:58):
I'm at roughly.
The 80,000 with still I'm still making about 54,000 at my
day job, but I've
still I've been able to
bring in more income through my Instagram page and
obviously that helps as well.
Well, so that's almost like what 25,000 from IG?
(22:20):
Yeah.
Yeah, and that started last year.
Well, okay.
So let's talk about that because this
is an interesting trajectory because now people
can see that.
Hey, Diana doesn't have like to
head.
She didn't do anything magical, right?
You still have a day job bringing in 55k, which is probably
good in many parts.
Like, I know if you live in New York City, probably might
(22:43):
be.
Oh, yeah, but like an Arkansas, right?
It's a good living, right?
Yeah.
Yeah.
I'll have this Instagram site.
Also, talk a little bit about the Instagram.
Yeah, and so I joined Instagram at like the end of 2018
because I
was desperate for community.
And I also knew that from, whenever I'm doing my research,
(23:07):
and I
was trying to find people to help me pay off debt, like,
get some tips.
It was always a two-income household and it
was always like that person making six figures and I'm
like This does not resonate with me and I
would get so frustrated and I
would click out the blog post or click
out the podcast and I'm like, there's literally nothing in
(23:28):
front of me that's going to
tell me that I can do it.
And so whenever I started gaining traction gaining progress on my journey,
and I'm
showing I have the proof that it's working.
I'm figured that whoever looks like me.
Single mom black woman doesn't have a high high-end cam they
(23:49):
need August, I need to
know this and we need more representation.
And so I started Instagram, just documenting my debt, free Journey.
Literally.
I just started documenting my debt free journey in the more that
I'm learning.
I would, I would put it in a post.
I learned this and I'm doing this and this
is how I'm doing this.
And because I was so generous with what I
(24:11):
was doing.
I wasn't withholding any information because I
wasn't trying to make an income off of it.
I started to gain I gained like Ten thousand followers in less
than a year and
then it just started growing from there because people
are like, thank you.
I could not resonate with anyone elses story, but
seeing you do, it keeps me motivated.
(24:32):
And so they're literally the reason why I kept going on
with this page and
then they just literally follow my journey.
Hmm.
Interesting and then I noticed on Twitter, you were talking about you
having a discussion yesterday, I believe what a bunch of ladies where
you Talk about financial Independence, right?
And actually get into that debt, free journey and
(24:55):
making money.
And I think one of the main things that people were talking
about was basically, Let me put it up here.
I had some influence share that they feel their partners are an
obstacle to
reaching spending Freedom, Choose Wisely or
risk, attaching yourself to liabilities.
(25:15):
So let's dive into that, a little bit difficult, debt free Journey.
Yes.
As a single mom, you were able to do it.
But something there are also women that are in relationships marriages and
all that too.
And families are still struggling with this debt, free Journey.
What did?
Discover in this conversation that affects relationships are money or how
(25:36):
many affect many women in their relationship, whether they
are black or otherwise, so it's like a, it's like
a night-and-day mix that I think.
And so I have a lot of women who want to
leave their situations who are unhappy in their situations, who are unsafe
in their, in their relationships, but they
(25:58):
can't leave.
Because They don't have the financial means to
hmm.
Well, they come to me and they're trying to get help
paying off debt and
saving money.
Just so they can leave their relationship.
They're stuck.
And then I have another side where it's
hard for them to
financially progress because they're taking care of their partner.
(26:18):
And that wasn't the, the agreement before the relationship
started.
And so with that tweet, that came from a post that I
had where I
was sharing my experience.
Of taking care of a partner and kids
as well.
So I'm basically caring for three people on not a high
income and it
(26:39):
made my financial Journey.
Ridiculously tough.
Yeah, and I find that whenever you are on a financial Journey
as a woman, it's very easy to
be gas-lit and two situations that are not helping your finances.
Whether that is use an example of that.
So, an example being gas-lit.
(27:02):
So, let's say that this person doesn't have, they're not,
you're not equally yoked financially job, or
maybe they're not bringing in as much as you.
It's very easy to
feel bad for that person.
Hmm.
It is very easy for that person to
manipulate you into feeling bad for them.
Well, you make more money than me, so you
(27:23):
should make more it or
if you give me this and
help me out to get a car or two.
Then I could get a job and
start making more money.
And then those broken promises.
They never.
Those promises.
Never come to fruition.
And I'm speaking from personal experience.
And so I've lost thousands behind a relationship because I
didn't ask the right questions before I
(27:45):
went into that relationship and I
didn't know to ask the right questions or to
really observe.
This person's financial habits before we
got attached, because once you get attached to that person, your discernment
It
goes out the window.
It is very easy to
get stuck in a situation that's taken from Mmm.
(28:07):
So what are some of the questions someone needs to
ask before they get into a relationship about a person's financial habits,
or
what are some of those red flags or
observable things that you need to
notice because like you said, if you go into a
relationship and you
don't know the person's financial habits or
even what their debts and assets
are, even before the relationship that could be another anchor, that could
(28:30):
drag you down if Financial Independence and freedom.
Yeah, and I feel like a lot of us.
We don't ask those questions because we
feel like it's tacky or that person
is going to think that we want something from them.
When in reality, that's not it at all.
You're doing your diligence by protecting yourself situation, right?
(28:51):
And so some questions that I like to
tell people to ask, and of course is going to
depend on your where you are in the dating face with this
person, but you
could just simply ask them to
give them room to
express themselves.
How do you feel about debt?
How do you feel about generational wealth?
How do you feel about joint bank accounts?
(29:12):
One good thing that's important to ask.
How do you feel about 50/50 splitting expenses equally with
your partner.
Is it that 30?
Because that's something that I see.
Now, with our culture, causes a lot of arguments, the whole 50/50
thing.
When you say 50/50 in regards to,
what just the bills alone, or
like going out to eat, or what all of the expenses, like
(29:35):
if you move in together, always splitting the rat.
Okay, utilities.
Okay.
So you want to know, what is their perspective on these things?
What is their perspective on wealth building?
Some people don't realize their Partners in six-figure debt until they're
walking down the aisle and and
suddenly it becomes part of your problem because you're
(29:57):
now having To make a life with this person.
In there being weighed down by dead.
And so once you really sit back and
observe this person spending habits, you can go out together.
You can go to a mall.
How is this person spending their money?
How is this person spending their time?
And then it's literally up to you to
(30:18):
decide.
Is that something that you're willing to
compromise?
Is that something you willing to
accept?
Do you feel like you can make this work with this person,
but
if not, if you're seeing those red flag Eggs, it's
probably best to
go ahead and walk now before you start gaining that attachment to
that person.
So, in the situation, like mentioned earlier, where one person makes less
(30:41):
than the other, does 50/50 still apply?
Or are you, do you have to like prorated based
on each person's income?
Like we have a progressive tattoo.
It the Richer you are the less you pay something like that.
Yeah.
Yeah.
The wealthier.
You are, the more you play on the expenses.
I hear from certain people like the person who has
(31:04):
the higher income.
They'll normally take the larger expenses.
And then the person that has the lower income.
They'll take like the utilities like the water-filled and things
like that, and it may be a male-female thing to that
comes into play.
So so why you say male female, that means the men prefer
to
pay more of the bills and
(31:26):
take on more of the weight, right?
Yeah, some Some men prefer to
take more of the weights because they
see them that I'm the man.
I should be the provider and some women
follow suit with that too.
And that's once again going into those questions, that it's
important to ask in the beginning, just to
make sure that you're on the same page when
(31:46):
it comes to how you
want to split the expenses or if you want someone to
take care of all of the expenses and there
are, you want the man to
do that.
Then you need to make sure that you're asking those questions
in the beginning.
So you're not disappointed whenever it.
Time for you to combine forces.
So when it comes to things
like spending because now we've
(32:07):
talked a lot about death.
It's another debt, make it Max, putting things into 401K savings,
selling back your PTO and
all that stuff when it comes to,
like really enjoying yourself and
splurging.
What do you think about that?
Because that's another area where especially now that
economy might be tanking, but
a lot of us have been cooped up at home for the
(32:28):
past year and a
half two years.
Years.
So people kind of want to
go away.
Take a trip or something, but you still have that debt and
you
still have those bills to
pay.
How does one do that in a way that doesn't affect
their overall debt Financial Freedom Journey.
Yeah, so, I know that it's kind of split in the
(32:48):
money Community.
There are some that like to
go extreme and basically stop all discretionary spending.
Mmm, so they can hit their financial goals and
then live their life later.
I'm someone where I say that financial responsibility and
treating yourself.
The two are not mutually exclusive.
You can't spend money and
still be financially responsible.
(33:10):
So I think one major way that's really important is to
align your
values with your spending.
So value-based spending look through your bank accounts over the past 30
days.
And look at all of your discretionary spending are these things that
you actually value or
is it just Thing that was impulsive or you
(33:31):
made an emotional purchase.
And then from there you want to
choose what you're actually going to
spend money on that align with your values and your goals.
So this is where the budget comes in.
What is your main goal?
If you're budgeting without a goal, it's like you're
going nowhere fast.
So, I like to recommend gold base budgets.
You have your main goal.
(33:51):
Maybe that's you paying off of your American Express credit card.
So depending on that end goal date.
You Want to have a deadline?
Otherwise, you'll keep putting it off.
Right?
So you want to have your deadline to kick-start you
to
kick start your journey, but
also so you can calculate how much you need to
(34:12):
apply to that goal to reach it by the end date.
And then let's say it.
Maybe you need $200 a month to
reach this goal.
So you would put that $200 in your budget, with your essential
expenses.
You need to pay your rent and everything and then you You
add your discretionary spending in after that and
(34:33):
make it work with your spendable income.
And this way, you're able to pay your bills.
You're still hitting your financial goals because you
built your budget around it and you
made your discretionary spending work, within whatever was left over.
So you made it work with your spendable income and that way,
it
forces you to re-evaluate what you're actually purchasing because You
(34:56):
may not have much left over, but you
still have some.
And it's important to give yourself something.
A lot of people try to, they
let that same, talk them out of, treating them self here and
there, it
doesn't have to be expensive.
It can be a six dollar coffee.
Three times a week, but you
need something to keep you motivated and you need something to inspire
(35:20):
you.
Otherwise the journey is going to
be held and if the journey is Hell on your budget is
hell, it's making you unhappy, you're not going to
stick with it.
Okay, so as we reach the end of the podcast, this has
been very insightful and
helpful.
I can see here that in as much as you
(35:41):
started not notice or the
financial terms.
You've picked up quickly because now you're
bringing in different lingo where you're not part of money
to
return.
You're now part of like the gang using the
same terminology that you probably didn't know earlier.
So do I am I assuming correctly that you are Doing Financial
(36:03):
coaching on your Instagram, or
how can people reach out to you
to learn more and probably connect with you.
So, for single moms somewhere.
Let's say, oh, I don't know.
Not the coder is reading this and
watching this and she's like, hey what?
I really resonated with what Diana or
saying, how can I get in touch with her and
(36:24):
learn from her?
And I know she's like, just like me because
we're
kind of on a similar Journey.
What are some tips you can give?
Or Not helping people reach out to you.
Yeah, so I'm new to the Twitter world, but I have
an amazing community on Instagram.
And so you can always DM me on Instagram at money boss.
(36:44):
Mama, and I also have a spinning challenge coming up where I'm
going to be able to have like a text message thread
with everyone in the challenge to
just so I can work alongside them as well.
Okay, so I just put that in the The Cisco I'm
(37:04):
using this type of the first time I don't thinks.
So is it money?
Doc boss, not mama or altogether?
The name is.
That's correct with the dots on my thoughts together.
(37:25):
That's it.
So, thanks for coming to
share your story.
Then appreciate you taking the time to
teach us more about how to Apply
some of these practical steps to
get out of that and I
hope that somebody listens into this podcast, will, take actionable
steps, to
get out of debt and, you
know, get on the path to Financial Freedom.
(37:46):
Yeah.
Thank you so much for having me.
All right, that's it for us.
One second.
Everyone, welcome to another exciting episode of
(00:02):
the bulletproof entrepreneurs podcast.
My guest today is Diana, King.
She's also known as the money boss.
Mama on Twitter right down.
That's right.
All right, so I have done here today because she
has a very interesting story.
I saw on Twitter and I
would love for her to
talk about herself and what she does.
(00:22):
So let me read out the title for this podcast today.
She's a single black mom of two who built a 76
thousand dollar.
Worth and a six-figure and I'm six months.
Emergency fund.
I'm paid off all our debts without ever making a six-figure
income.
She's here to tell us exactly how she pulled out of
because
if you're building the 76k networth and
(00:45):
six months, emergency fund.
Most people will think, you're making at least well
into the six figures or you
have like a couple side hustles or you married rich or you
got an inheritance or something like that, but
apparently she didn't have Any of all that, she
came up from the bootstraps and
built all this, and she's here to teach us exactly how
(01:06):
she did it.
So with that said, Diana, welcome to the podcast
today.
Yeah.
Thank you for having me.
Awesome.
Awesome.
So that I tell us your story, I know
you were in debt.
I know you struggled financially and
then you also you put eventually put yourself out of that.
So walk us through your origin story if you will.
Yeah, so when it all started with my first did, so, I
(01:30):
was 18, you know, I came from a single-parent
household, my parents
divorced, when I was in the third grade and
by that time I was living with my mom.
And so, when I turn 18, I decided it was going to
be a very good idea to
go out and get a new car.
So I was tired of driving my little hoopty because that's
(01:53):
all, you know, my mom could afford to
give me and so I decided that I work hard.
Even though I work as a Sonic CarHop in fast food, I
was gonna
go out.
I'm a big girl.
I'm 18 now and I'm
going to go get me a new car because I Define
financial success by what you have, right?
(02:15):
And so I figured if I get this new car people are
going to
think that I'm a lot more well off than I really
am.
And so turns out, I knew nothing about the process.
I didn't know anything about a credit score.
I didn't know anything about an interest rate and so
Oh, I
got hit with a very large interest rate because my mom's
credit wasn't the best.
(02:36):
I didn't have any credit.
So she was the only one that would co-sign for me and
it
wound up that my auto loan payment was taking one of my
paychecks per month.
I got paid twice.
Yeah, and one of them had to go to my auto
loan.
And so when I it didn't become a really big problem.
What car was it?
(02:56):
It was a Volkswagen Passat.
It was brand new Volkswagen Passat Bradley, but it
low mileage.
Okay, so it had like it was like the luxury kind leather
push to
start really know if I was feeling myself until I got pregnant
with my first born in life, kind of like to
(03:18):
shake me, right?
How am I supposed to
take care of myself and my child
and I'm still having to give up one paycheck per month.
Mmm, and so, it wasn't until I I got really, really
uncomfortable and I
realized like I really cannot afford this that I started to
research ways
in which, how can I get rid of this car started with
(03:41):
the auto loan.
I went down this Rabbit Hole of Google.
A lot of people seem to
think that to be financially successful or or have
spending Freedom.
You had to be, you know, like the finest Bros. You have
to know the lingo, you have to be very good, very smart,
but
basic person, Arkansas, I don't know all the big words simplify
(04:04):
it in my head before I
could do it.
Right.
So basically I went down this Rabbit Hole Google trying to
figure out how to lower my auto loan and it
feels out these words that you have no idea what they are.
So you have to go and research
those.
So what's an example of one of those words that you?
So that's how I learned about interest.
Okay?
Oh, really?
(04:25):
Yeah.
I'm not no idea for is that I for the First
time I went in and I
looked at my balance for the first time since having this auto
loan and I'm
like, why is my payment not?
Why is my balance still high?
My payment isn't going anywhere.
200 dollars of that 495 payment was going to interest.
(04:47):
And so I started slowly building that financial literacy.
That way going down this Rabbit Hole of figuring out, what I
don't know.
And the more I realized what I didn't know that.
Up like this Pathway to
actually being able to teach myself what these things meant, and
then going into developing a strategy to
(05:08):
get the debt paid off.
So what were some of those steps you have to take?
Because like you rightly said, know, if 50 percent of your paycheck
is going to
pay the car by means you were making.
I'm just saying like about the thousand dollars roughly at the
time, right?
So what were some of the steps that you took?
Because obviously now I mean, 2012 is like 10 years away.
(05:30):
You kind of crawl out of it.
So how did you start?
So when did you actually take like a financial seminar
class or
one of those type of things and
how did you start crawling out of the debts?
So I came from the University of Google, I'm self-taught, but
the way
that I started first.
I always tell people, it has to be your mentality.
(05:52):
You got to start with that and you got to reach that
place where you're so sick of being uncomfortable that it forces
you to
remain consistent.
Stand because a lot of us start, right?
And then something happens if not thing as quickly as we wanted
to.
We feel like we don't have enough money and
then we quit and we don't realize if we just stayed
consistent, you were going to
make some progress.
(06:13):
It just may have taken a while.
And so after I got my mentality because I
started first once before and I quit I was like, I'm
not quitting this time.
If I keep going, something's going to
break.
I'm going to have a breakthrough and then it went to
Budgeting.
Yeah, I was that person.
That was like, I don't know where my money is going.
(06:34):
So I had to go find it and the
first budget that I made my expenses, did exceed my income.
And that's when I learned that, I was paying out a
lot more than what I
was bringing in.
So of course, discipline has to come in.
You've got to make the sacrifice if you really want this.
And so I had to let certain things go or
a lot of things go, obviously, since I wasn't a high
(06:58):
earner, And so nails, hair.
All of that, the little little treat.
Yes.
That had to go all of that to
go.
I got my kids clothes from the thrift store like consignment sales
and Goodwill.
I was determined to get this debt paid off and
(07:18):
one thing I will say that really accelerated my journey as well.
That a lot of people don't see it as an opportunity
is extra income.
Like if you could tax refund What are you doing with that
tax refund?
That's a way in which you can leverage and
make up for lost time.
So what I would do is like a 70-20-10 allocation method, just
(07:41):
depending on what was my main goal.
So if it was dead, 70% of that 12 debt 20% went
to savings
and then 10% I just used for personal fun.
And that way, I got to
enjoy little bit of that money, but
90% went to something that was moving, the needle forward, and my
life.
Tax refunds were only about 23-thousand dollars, but
(08:04):
still, that helped me to
make progress a lot faster.
Because even though I made this lump sum payment
I would still
make my regular payments.
So was like, I paid it up for six months and
then just left it alone.
I learned that the hard way and interes
is still going to eat you alive.
So I would pay it up and
then I would make my regular payments that way, extra 10, 15
(08:26):
dollars because that's
all I had.
And then as the Dead Dwindle?
What I learned was that that puts more money in my budget.
So if I could get rid of this lower this lowest balance
credit card, once that was done that put an extra 50, 60
dollars that I could apply to my
other debts and it started to snowball method.
(08:47):
Yes, it took four years, but I
was still able to do it without making six figures.
So in those four years, you literally just like focus on the
dead cut down on things like like you said, Your head Nails,
make up going to
through.
So that's not something like a real period of pain because
although group
(09:08):
going from like no showing everybody or a baller,
getting the leather option Passat and everything
to like doing it.
Like I can assume you were cooking at home.
I'm not eating out and
all those that I was something like a real solid period of
pain.
Do you think like, most people would want to subject
(09:28):
themselves
to that kind of Pain.
Because you first of all knew that hey, if you don't
get out of this that probably be no way out for you.
Yes, I saw it as that just that if I don't
do this now, there's literally going to
be no way out for me.
If I don't take on this little bit of motivation and
optimism
that I have and kind of work with that.
(09:51):
There's a there's no way out and
then when I realized that, I was the blueprint for my children
like they were watching me, kids may not do as you say,
but Do
as you do.
And so these two kids are on me and that
that fueled and kept me, consistent within these four years.
And now, yes, I did cut out a lot.
(10:12):
I don't expect other people to
have that same level of discipline and dedication
as me, but for me, I saw the vision I saw the
angle and
when whenever I have that Vision, I'm willing to
do whatever you get to it.
And so that all of nothing mentality.
Really did help me and I
will stay with my credit card debt.
(10:34):
One thing that I started realizing through.
The University of Google was that there was this world of side
hustling, right?
And so what I did was I made a list of my
for skills.
I was like, okay what skills do I have?
Because going into it.
I didn't feel like I had anything to
offer but Ronnie was always something that I enjoyed.
(10:54):
So I again riding okay writing and so I
actually went A cause for writing to, so I'm
like, well, what can I do with this writing?
Because everyone was like, can you help me with my paper?
Could you help me proofread?
And so I started, I went to Google
and said how to make extra money writing and it
came up with freelance writing and so I
(11:16):
would find Opportunities online to
write for other people.
And then when those clients you did a good job and they
like their work yet.
They like your work, they become recurring customers and
make 22.
Four hundred dollars a month because I
realized this extra $30 towards my credit cards wasn't going to
cut it.
I'm extra money.
(11:38):
And so I would freelance.
When my daughter went to sleep
when my kids were sleeping and
then on the weekends and
sometimes it's time-consuming, but that
two to four hundred dollars.
Obviously it helped me break ground when it came to the credit
cards
and it helped me pay it off faster as well as transferring
my balances 20.
(12:00):
With It intro, a PR card, so no interest extra money.
Knocked it out a lot faster.
Good good.
So now let's talk a little bit about that side hustling because,
you
know, if you're reading the news watching, you see that, you
know, inflation is going Sky High.
So in as much as people might be trying to
get out of debt, things that posting more food is costing me.
(12:21):
My life is generally cost in here, and
then side hustling, you found clients and
all that.
So for someone who had a full-time job and I
started hustling nights and weekends.
Could you walk us through some of those steps?
You took to like find the exact side hustle.
how did you apply?
(12:42):
How did you find the right person?
all those type of little ABCDE steps that if somebody
listening to this
today, says Bow.
Wow, I think I could also do a Diana's doing.
Let me go follow.
This roadmap that she laid out on.
Let's see how I can get to the same result.
(13:03):
Yeah.
And so the simplest way to
do it, I would say first of all, right out your skills.
Don't think of it in your head, make a bulleted list
of what you're
good at that you could possibly monetize.
And then from that list, right out how you
can monetize each skill depending on which one stands out
(13:24):
the most to you
that You really feel like you could be consistent with because
if you're like me, you're a single parent.
You're already stretched thin, right?
And I know that the idea of side hustling can turn a
lot of people off because you're
like, how am I finding the time to
do this?
And so you want to make sure that whatever you do is
going to
be worth the time that you're putting in.
(13:45):
You don't want to
put in four hours and you
only made 10 dollars you don't want to
go that route and then depending on, whichever wanted to skills
that you really feel.
You can monetize.
It's a simple web search.
We literally have the world at our fingertips now, with the internet
and so you
can go online depending on your skill and
(14:06):
look at how to monetize those skills.
And there are a lot of job boards that I found that
are online for even if it's just not freelance writing but
just Freelancers in general General.
It's like yeah fiber that you could literally sell
your skills on and
then when you get those clients You do a good job.
They're going to want to work with you again, because you've
(14:28):
proven to them that you have high quality work.
And so you can make online portfolios that list out your skills.
Any examples of the work that you have.
That's what I use.
Like an online portfolio for my writing.
So when using online portfolio not a website, just like static page
or whatever.
(14:50):
It's like a it's like a static page.
Okay.
Website that I use, right?
Right now with Wix or
yeah, those type of things.
It's like instead of an in paper resume its digital resume.
Okay, and link your pages to and I had a little blog
at that time too.
(15:10):
So I anything that I could use I was linking into it
just so I
can add some proof in the beginning and
still I until I started to
get the proof from the client work that I had.
Okay?
Good.
So, how long did you do that up until you build the
76k networth?
Because now you spent four years digging yourself out of the temple,
(15:34):
right?
So now I believe you have side hustling in place.
You have your daytime nine-to-five job, we please.
Now.
How did you go?
And now expand the pie to, you
know, socking away 76k whether it's
in, your 401k Ira or stocks
or whatever it is.
Yeah, so I will say with the side hustle.
(15:56):
It helped me pay off that credit card debt faster, but it
really didn't help with the network part.
Well, I guess it did because the
lower the debt, the higher, your, the more, your assets
are going to
be able to shine in their entirety.
So I, my journey did not come without many, many ups and
downs.
So, let's hear some of the awesome down.
(16:17):
And so I wanted to dance like four more times during my
those four years.
Oh, wow.
When I got It knocked on my, but I
had to pick myself right back up.
And that's why I said it's very important to
start with your mindset.
Like I'm going to
do this and I'm going to stay consistent.
Otherwise when life hits you you're going, you're going to
(16:38):
quit and everything that you've built up to that
point.
You're going to lose out on.
And so whenever I got pregnant with my son, a few months,
after I started my debt, free Journey.
Here Comes childcare again.
I find him rid of childcare got pray.
It now here comes childcare maternity leave and
all of that.
So once the my life happened life happen, and
(17:00):
so when my credit card debt got manageable, I didn't use
the funds from that side, hustle to
build my maternity leave fun because I
wasn't going to get paid in my entirety.
And also I used it to
side hustle.
What I would need to
make up for childcare.
So I need about two hundred extra dollars to
keep my debt payments.
The same.
(17:22):
I wanted to Oh, I'm I set a goal and a
year
to pay off my my last credit card and my auto
loan to pay it off in its entirety.
And so to keep my debt payment, the same, I had to
side hustle for that extra money.
So that my son's Child Care didn't eat everything.
So, I moved out of my apartment to a
(17:43):
little crappy apartment.
At the end of the lease that saved me $120 and
then it came with free water.
So that saved me money too.
And so based on my savings.
I'm like Is what I need to
keep my debt payment.
The same that I can get out of this crappy apartment within
a year's time.
And once again going back to you
being so uncomfortable.
(18:03):
You leaving yourself?
No choice, but to stay consistent.
I was tired of living with roaches.
And so that was all I needed to
stay consistent on that paid off my last credit card, paid off
my auto loan, and
got the heck out of there to a
better apartment.
And then after that, the thought hustling for the freelance writing.
I let that go because now I
(18:25):
don't have those two payments taken from my pay.
I've got extra money in my budget now.
Okay, so you did some downsizing and
then, use the filler in to
make up money for your kids screaming, but
back to the 76k.
So how did that come about?
So that really started to
(18:46):
take off the last year and a
half?
Okay.
A debt free Journey.
Okay.
So I was always kind of contributing to my
401 k. That is the book, the bulk of my net worth.
And so Since I don't have any debt or liabilities
taking from these assets, they can just sign in their entirety.
(19:07):
So the bulk of it is 401K.
I'm at percent now that I'm contributing to that
then I have my Roth IRA that I set up last year
and
then I put the most the majority of my extra money towards
my Roth IRA and I
started investing in single stocks first before the Roth IRA
(19:28):
or anything else like that a little Go backwards, but I
have single stocks shares and
single stocks that I have also.
So with me, it was a very simple game plan.
I knew that the more that I pay off these debts the
higher my net worth will be and
so now I don't have any debt.
(19:48):
My income mostly goes towards my Roth IRA and my
401k.
So how much are you making in this year and a
half that you were able to?
Because you said you never made Six figure income.
So, what was your annual income?
This point in time?
I started my journey at thirty two thousand dollars.
(20:09):
Okay.
So about 15 dollars an hour and
then I paid off all of my debt and
2020 the worst year ever for a lot of people, but it
was the best for me because stimulus
checks are coming in.
I have my incentive, who's got, sobered up to
dead, and to my investments to and I would sell my PTO.
(20:30):
Go to to help me fund my investments and my dad.
What do you mean?
So, a PTO seal back, some companies allow you to
sell back.
Unused PTO.
Okay?
For my company, anything over 80 hours.
We can sell back.
So if I had 200 hours of PTO, I could sell back
(20:51):
120 and
get that act.
Oh perfect.
Yeah, and so like I was saying when you're
so dead set on a goal, you're going to
see opportunities.
Yeah, so yeah, so you're finding money within like what you
are.
That's what everyone like having to do too much ice cream.
I'm finding.
I'm literally looking at my situation and I'm
(21:13):
going in with the mentality of, how can I make this
work?
Not, this is why it can't work.
No, how can I make this work?
And I'm finding opportunities and day-to-day things
that I didn't see the opportunity and because I'm
that focused on getting there.
So you started from 30 to them
by 2020.
How much?
Yeah, so by 2020, I was at about 55,000.
(21:36):
Okay, and that included also making a little money through my Instagram
page by this time.
So it was about 50,000 for from my day job and
then I had 5,000 that I made from Instagram.
And so that was what I ended the debt free Journey with.
Now.
(21:58):
I'm at roughly.
The 80,000 with still I'm still making about 54,000 at my
day job, but I've
still I've been able to
bring in more income through my Instagram page and
obviously that helps as well.
Well, so that's almost like what 25,000 from IG?
(22:20):
Yeah.
Yeah, and that started last year.
Well, okay.
So let's talk about that because this
is an interesting trajectory because now people
can see that.
Hey, Diana doesn't have like to
head.
She didn't do anything magical, right?
You still have a day job bringing in 55k, which is probably
good in many parts.
Like, I know if you live in New York City, probably might
(22:43):
be.
Oh, yeah, but like an Arkansas, right?
It's a good living, right?
Yeah.
Yeah.
I'll have this Instagram site.
Also, talk a little bit about the Instagram.
Yeah, and so I joined Instagram at like the end of 2018
because I
was desperate for community.
And I also knew that from, whenever I'm doing my research,
(23:07):
and I
was trying to find people to help me pay off debt, like,
get some tips.
It was always a two-income household and it
was always like that person making six figures and I'm
like This does not resonate with me and I
would get so frustrated and I
would click out the blog post or click
out the podcast and I'm like, there's literally nothing in
(23:28):
front of me that's going to
tell me that I can do it.
And so whenever I started gaining traction gaining progress on my journey,
and I'm
showing I have the proof that it's working.
I'm figured that whoever looks like me.
Single mom black woman doesn't have a high high-end cam they
(23:49):
need August, I need to
know this and we need more representation.
And so I started Instagram, just documenting my debt, free Journey.
Literally.
I just started documenting my debt free journey in the more that
I'm learning.
I would, I would put it in a post.
I learned this and I'm doing this and this
is how I'm doing this.
And because I was so generous with what I
(24:11):
was doing.
I wasn't withholding any information because I
wasn't trying to make an income off of it.
I started to gain I gained like Ten thousand followers in less
than a year and
then it just started growing from there because people
are like, thank you.
I could not resonate with anyone elses story, but
seeing you do, it keeps me motivated.
(24:32):
And so they're literally the reason why I kept going on
with this page and
then they just literally follow my journey.
Hmm.
Interesting and then I noticed on Twitter, you were talking about you
having a discussion yesterday, I believe what a bunch of ladies where
you Talk about financial Independence, right?
And actually get into that debt, free journey and
(24:55):
making money.
And I think one of the main things that people were talking
about was basically, Let me put it up here.
I had some influence share that they feel their partners are an
obstacle to
reaching spending Freedom, Choose Wisely or
risk, attaching yourself to liabilities.
(25:15):
So let's dive into that, a little bit difficult, debt free Journey.
Yes.
As a single mom, you were able to do it.
But something there are also women that are in relationships marriages and
all that too.
And families are still struggling with this debt, free Journey.
What did?
Discover in this conversation that affects relationships are money or how
(25:36):
many affect many women in their relationship, whether they
are black or otherwise, so it's like a, it's like
a night-and-day mix that I think.
And so I have a lot of women who want to
leave their situations who are unhappy in their situations, who are unsafe
in their, in their relationships, but they
(25:58):
can't leave.
Because They don't have the financial means to
hmm.
Well, they come to me and they're trying to get help
paying off debt and
saving money.
Just so they can leave their relationship.
They're stuck.
And then I have another side where it's
hard for them to
financially progress because they're taking care of their partner.
(26:18):
And that wasn't the, the agreement before the relationship
started.
And so with that tweet, that came from a post that I
had where I
was sharing my experience.
Of taking care of a partner and kids
as well.
So I'm basically caring for three people on not a high
income and it
(26:39):
made my financial Journey.
Ridiculously tough.
Yeah, and I find that whenever you are on a financial Journey
as a woman, it's very easy to
be gas-lit and two situations that are not helping your finances.
Whether that is use an example of that.
So, an example being gas-lit.
(27:02):
So, let's say that this person doesn't have, they're not,
you're not equally yoked financially job, or
maybe they're not bringing in as much as you.
It's very easy to
feel bad for that person.
Hmm.
It is very easy for that person to
manipulate you into feeling bad for them.
Well, you make more money than me, so you
(27:23):
should make more it or
if you give me this and
help me out to get a car or two.
Then I could get a job and
start making more money.
And then those broken promises.
They never.
Those promises.
Never come to fruition.
And I'm speaking from personal experience.
And so I've lost thousands behind a relationship because I
didn't ask the right questions before I
(27:45):
went into that relationship and I
didn't know to ask the right questions or to
really observe.
This person's financial habits before we
got attached, because once you get attached to that person, your discernment
It
goes out the window.
It is very easy to
get stuck in a situation that's taken from Mmm.
(28:07):
So what are some of the questions someone needs to
ask before they get into a relationship about a person's financial habits,
or
what are some of those red flags or
observable things that you need to
notice because like you said, if you go into a
relationship and you
don't know the person's financial habits or
even what their debts and assets
are, even before the relationship that could be another anchor, that could
(28:30):
drag you down if Financial Independence and freedom.
Yeah, and I feel like a lot of us.
We don't ask those questions because we
feel like it's tacky or that person
is going to think that we want something from them.
When in reality, that's not it at all.
You're doing your diligence by protecting yourself situation, right?
(28:51):
And so some questions that I like to
tell people to ask, and of course is going to
depend on your where you are in the dating face with this
person, but you
could just simply ask them to
give them room to
express themselves.
How do you feel about debt?
How do you feel about generational wealth?
How do you feel about joint bank accounts?
(29:12):
One good thing that's important to ask.
How do you feel about 50/50 splitting expenses equally with
your partner.
Is it that 30?
Because that's something that I see.
Now, with our culture, causes a lot of arguments, the whole 50/50
thing.
When you say 50/50 in regards to,
what just the bills alone, or
like going out to eat, or what all of the expenses, like
(29:35):
if you move in together, always splitting the rat.
Okay, utilities.
Okay.
So you want to know, what is their perspective on these things?
What is their perspective on wealth building?
Some people don't realize their Partners in six-figure debt until they're
walking down the aisle and and
suddenly it becomes part of your problem because you're
(29:57):
now having To make a life with this person.
In there being weighed down by dead.
And so once you really sit back and
observe this person spending habits, you can go out together.
You can go to a mall.
How is this person spending their money?
How is this person spending their time?
And then it's literally up to you to
(30:18):
decide.
Is that something that you're willing to
compromise?
Is that something you willing to
accept?
Do you feel like you can make this work with this person,
but
if not, if you're seeing those red flag Eggs, it's
probably best to
go ahead and walk now before you start gaining that attachment to
that person.
So, in the situation, like mentioned earlier, where one person makes less
(30:41):
than the other, does 50/50 still apply?
Or are you, do you have to like prorated based
on each person's income?
Like we have a progressive tattoo.
It the Richer you are the less you pay something like that.
Yeah.
Yeah.
The wealthier.
You are, the more you play on the expenses.
I hear from certain people like the person who has
(31:04):
the higher income.
They'll normally take the larger expenses.
And then the person that has the lower income.
They'll take like the utilities like the water-filled and things
like that, and it may be a male-female thing to that
comes into play.
So so why you say male female, that means the men prefer
to
pay more of the bills and
(31:26):
take on more of the weight, right?
Yeah, some Some men prefer to
take more of the weights because they
see them that I'm the man.
I should be the provider and some women
follow suit with that too.
And that's once again going into those questions, that it's
important to ask in the beginning, just to
make sure that you're on the same page when
(31:46):
it comes to how you
want to split the expenses or if you want someone to
take care of all of the expenses and there
are, you want the man to
do that.
Then you need to make sure that you're asking those questions
in the beginning.
So you're not disappointed whenever it.
Time for you to combine forces.
So when it comes to things
like spending because now we've
(32:07):
talked a lot about death.
It's another debt, make it Max, putting things into 401K savings,
selling back your PTO and
all that stuff when it comes to,
like really enjoying yourself and
splurging.
What do you think about that?
Because that's another area where especially now that
economy might be tanking, but
a lot of us have been cooped up at home for the
(32:28):
past year and a
half two years.
Years.
So people kind of want to
go away.
Take a trip or something, but you still have that debt and
you
still have those bills to
pay.
How does one do that in a way that doesn't affect
their overall debt Financial Freedom Journey.
Yeah, so, I know that it's kind of split in the
(32:48):
money Community.
There are some that like to
go extreme and basically stop all discretionary spending.
Mmm, so they can hit their financial goals and
then live their life later.
I'm someone where I say that financial responsibility and
treating yourself.
The two are not mutually exclusive.
You can't spend money and
still be financially responsible.
(33:10):
So I think one major way that's really important is to
align your
values with your spending.
So value-based spending look through your bank accounts over the past 30
days.
And look at all of your discretionary spending are these things that
you actually value or
is it just Thing that was impulsive or you
(33:31):
made an emotional purchase.
And then from there you want to
choose what you're actually going to
spend money on that align with your values and your goals.
So this is where the budget comes in.
What is your main goal?
If you're budgeting without a goal, it's like you're
going nowhere fast.
So, I like to recommend gold base budgets.
You have your main goal.
(33:51):
Maybe that's you paying off of your American Express credit card.
So depending on that end goal date.
You Want to have a deadline?
Otherwise, you'll keep putting it off.
Right?
So you want to have your deadline to kick-start you
to
kick start your journey, but
also so you can calculate how much you need to
(34:12):
apply to that goal to reach it by the end date.
And then let's say it.
Maybe you need $200 a month to
reach this goal.
So you would put that $200 in your budget, with your essential
expenses.
You need to pay your rent and everything and then you You
add your discretionary spending in after that and
(34:33):
make it work with your spendable income.
And this way, you're able to pay your bills.
You're still hitting your financial goals because you
built your budget around it and you
made your discretionary spending work, within whatever was left over.
So you made it work with your spendable income and that way,
it
forces you to re-evaluate what you're actually purchasing because You
(34:56):
may not have much left over, but you
still have some.
And it's important to give yourself something.
A lot of people try to, they
let that same, talk them out of, treating them self here and
there, it
doesn't have to be expensive.
It can be a six dollar coffee.
Three times a week, but you
need something to keep you motivated and you need something to inspire
(35:20):
you.
Otherwise the journey is going to
be held and if the journey is Hell on your budget is
hell, it's making you unhappy, you're not going to
stick with it.
Okay, so as we reach the end of the podcast, this has
been very insightful and
helpful.
I can see here that in as much as you
(35:41):
started not notice or the
financial terms.
You've picked up quickly because now you're
bringing in different lingo where you're not part of money
to
return.
You're now part of like the gang using the
same terminology that you probably didn't know earlier.
So do I am I assuming correctly that you are Doing Financial
(36:03):
coaching on your Instagram, or
how can people reach out to you
to learn more and probably connect with you.
So, for single moms somewhere.
Let's say, oh, I don't know.
Not the coder is reading this and
watching this and she's like, hey what?
I really resonated with what Diana or
saying, how can I get in touch with her and
(36:24):
learn from her?
And I know she's like, just like me because
we're
kind of on a similar Journey.
What are some tips you can give?
Or Not helping people reach out to you.
Yeah, so I'm new to the Twitter world, but I have
an amazing community on Instagram.
And so you can always DM me on Instagram at money boss.
(36:44):
Mama, and I also have a spinning challenge coming up where I'm
going to be able to have like a text message thread
with everyone in the challenge to
just so I can work alongside them as well.
Okay, so I just put that in the The Cisco I'm
(37:04):
using this type of the first time I don't thinks.
So is it money?
Doc boss, not mama or altogether?
The name is.
That's correct with the dots on my thoughts together.
(37:25):
That's it.
So, thanks for coming to
share your story.
Then appreciate you taking the time to
teach us more about how to Apply
some of these practical steps to
get out of that and I
hope that somebody listens into this podcast, will, take actionable
steps, to
get out of debt and, you
know, get on the path to Financial Freedom.
(37:46):
Yeah.
Thank you so much for having me.
All right, that's it for us.
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