Photo Courtesy of Grow From Acorns
Shaquana Watson-Harkness, a Philadelphia financial services professional, got out of debt– in two years after being laid off from her job.
She shared on her Instagram that she had accumulated over $20,000 in debt while traveling the world. Her total debt was $169,000.
In a CNBC Grow Acorns article, Harkness explained that in 2018 she decided to make a New Year’s resolution to stop funding her lifestyle with credit cards and get out of debt completely.
In under two years after committing to become debt-free, she paid off $169,000 in debt.
However, the journey to reach her finance goals was a bumpy one. In November 2019, her employer laid her off, and she was left without her full-time job.
“Always prepare for the unexpected and maintain multiple streams of income outside your day job,” Watson-Harkness told Black Enterprise.
“The multiple streams of income could be passive income such as investments or working on your business as a side hustle,” she added.
Watson-Harkness shared that the beginning of her unsustainable spending habits began in her early stages of college.
“I had been struggling with learning how to manage my finances for nearly 20 years. My freshman year of college, I got my first credit card so I could cover a spring break trip with my roommates. Maxing out that card was the beginning of my toxic relationship with debt,” she said.
Following this, she held onto that lifestyle for 20 years, falling deeper into debt as time passed.
Now, she’s figured out a formula to bring financial literacy to others.
“I have been able to successfully build an investment portfolio worth six figures while paying my six-figure debt,” Watson-Harkness shared on Instagram.
“I have made mistakes, taken learnings, and eventually perfected my process.”
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Watson-Harkness decided that the first step she would take towards financial freedom was to accept that she had a problem and learn how to change and manage her habits.
In February 2018, she signed up for a money management course where she created her first budget and planned to pay off her debt and reach her financial goals.
Secondly, she managed her spending habits to avoid living paycheck to paycheck.
After this, the woman began implementing the debt snowball method. This management method focuses on paying off the smallest balances first and building up to take on the more significant debts. Within 15 months, she paid off $160,000 worth of credit card debt, the mortgage on a rental property, and student loans.
Watson-Harkness admitted that her negligence towards her expenses was her main issue.
“The biggest mistake I made prior to creating my first budget was that I never paid myself first. I always paid my bills and everyone else before I put any money in my savings or set anything aside for personal purchases.”
In December 2019, she
decided to start Dollars Makes Cents, a financial literacy company meant to aid women in achieving financial independence for themselves.“Today, through my side hustle business, I strive to help women understand that building wealth can be achieved with consistency, discipline, and having a vision about how you want to live your life in the future.”