Dig Yourself Out: Reduce Credit Card and Student Loan Debt

The truth is - it can be hard to dig yourself out of a financial debt hole.  

Most people do not like to owe anything to anyone, let alone deal with the emotional strain that comes with feeling like you're stuck in a hole.  We all incur debt to get access to money for reasons that make sense at the time – education, a home, kids, healthcare, the pursuit of dreams, unforeseen circumstances. Or, maybe you did not want to part with your cash, and so you racked up debt instead.

There is no judgment for how you got into debt, nor why you’re still in it.

However, my hope is that you have a plan of attack for getting out of that debt hole which is crippling your ability to do other things, such as investing, starting a business, or taking a vacation. When the debt reflects a much higher cost than the original purchase, an alert should be going off in your head. You should continually ask yourself this key question:

Is there a way to lower the interest rate on my existing debt?

The savvy financiers are answering this question with a resounding "yes" by taking advantage of recent innovations in financial products. I do not want you to be out of the loop. Most people are familiar with the benefits of mortgage refinancing to lower payments on your mortgage debt, so I will not focus here today. But, I will focus on lowering payments on the other big kahunas - student loan debt and credit card debt.

Credit cards. I do believe that a credit card balance transfer is a smart way to lower the interest on your credit card if done properly. However, if you’ve already pulled this trigger, or do not want to experience a jump in the rate after some short introductory period, consider taking out a personal loan. In recent years, several financial companies like Avant, Lending Club, Prosper, and SoFi have created whole businesses by offering personal loans to consumers to pay off credit card debt.

Of the companies, SoFi is the only one that lets you borrow more than $35,000 and caps its interest rates at 10%. (Full disclosure – I have a paid brand ambassador relationship with SoFi. I only establish these relationships with companies that have products that I truly believe in and would use myself). SoFi customers tend to have higher credit scores than the other companies, so if you have great credit, you can see what rate you qualify for without any affect to your credit. I did apply for personal loans at Lending Club and Prosper just to see what rate I would get, and I could not get anything lower than 15%. I encourage you to shop around, let the numbers speak for themselves, and make sure the customer service is top notch. If your findings are good, let me know.

The logic is simple – you get a lower interest rate personal loan to pay off a higher interest rate credit card. Such a strategy is similar to a mortgage refinance but in this case, a separate company gives you the personal loan. So, let’s say you have $50,000 in credit card debt with an interest rate of 18% and you qualify for a personal loan for $50,000 for 6%, which is two-thirds lower than your current rate. What you can do is take the $50,000 and pay off the entire credit card balance. You now owe $50,000 on a personal loan at a much lower interest rate and can plan a term you want to pay it back. When you determine a term such as three of five years, you now have a plan of attack with a predictable monthly payment to hit.

Student loans. If you can refinance your student loan, you can potentially save thousands in interest over the life of the student loan by lowering the interest rate. The BEST time to refinance a student loan is right after you graduate. This is because refinancing basically gives you an entirely new loan. Remember, loan payments are allocated more toward interest (and less toward the principal) in the beginning years of a loan repayment, so if you reduce the interest rate at the beginning, you will prevent yourself from paying a lot in interest already. If you wait even a few years after graduation to refinance, the benefits of the refinance are not as great.

For example, if you refinance right at the beginning of a 10-year loan repayment cycle, you do so without having paid any interest. If you refinance with 7 years left on your loan, you will already have paid a lot in interest in your first three years, and then get a new loan for potentially another 10 years. As a result, even though you lower the interest rate, you effectively are paying 13 years worth of loans, which means more payments to potentially offset any gains from the lower rate. Now, you could get a new loan for 5 years, but then your monthly payment will be higher (even with the lower rate) because of the shorter repayment time.

The major players in the student loan refinance market are Citizens Bank, Common Bond, Earnest, LendKey, and SoFi. (Full disclosure - I have paid brand ambassador relationships with CommonBond and SoFi because I believe in their products). Again, I encourage you to check them all out and let the numbers speak for themselves and make sure the service quality is HIGH.

But if you like other benefits, CommonBond and SoFi might be up your alley. Through its social promise program, CommonBond funds the education of a student in need abroad for a full year for every degree fully funded on the company's platform. Through its entrepreneurship program, SoFi offers loan deferment, mentorship, a peer network, and access to its investors for budding entrepreneurs.

What to do?

Regardless of which way you go, it is important to know that you have options. Take advantage of the potential to lower your interest rates by smartly using financial products to your benefit.

Trust me, you will be happy with your newfound freedom after digging yourself out of the debt hole!

Should You Get a Membership, or Not?

Last week, I received an alert from Amazon to remind me of its first ever “Prime Day” – reserved for Prime members. I felt special and that I belonged to this exclusive Prime club. In commemoration of Amazon’s 20-year anniversary, it announced “Prime Day” as a one-day only event filled with more deals than Black Friday, exclusively for Prime members around the globe.  

But when I went to buy things that I already had in my mind to buy, I could not find a deal anywhere. I felt right at home with all the #PrimeDayFail Tweeters. But Amazon had the last laugh – the company sold more products on Prime Day than Black Friday in 2014.

The experience compelled me to evaluate the memberships that I’ve purchased. Have you ever had a hard time deciding whether you should keep (or invest in for the first time) a store membership that has an annual fee?

I’m a big fan of purchasing memberships that produce a lot of value. Overall, I think there are 4 main factors in evaluating store memberships that have a fee attached:

1. Re-coup annual fee. You must ask yourself if you think you’re going to recoup your annual membership fee through the savings that the membership promises on goods that you would have purchased anyway. For example, I pay $99 per year for an Amazon Prime membership, and I’ve saved way more than $100 in shipping fees on gifts and products that I would have purchased in a physical retail location.

If you find yourself buying many more items than you originally planned on, the retailer has done a marketing job on you. You are not getting a deal if you buy something that you did not intend to buy.

2. Convenience and time saver. Your time is often worth more than money because you cannot get it back. If a membership takes some of the stress off of your daily grind or prevents a trip to the store, then this has incredible value in your life. If a store’s membership feels like an extra stressor, then are you really going to jump at the chance to use that stressor.

I also have a Costco membership, which costs $55 annually and can be used at any worldwide Costco warehouse locations. I have to strategically plan my visit when lots of people are not there so I don’t get overwhelmed by the crowds of people. In this case, I tend to re-evaluate my Costco membership every time I pull into the parking lot. And, I cannot seem to leave Costco without spending less than $150 even though I’ll only go in there for 3 items but come out with many more.

On the other hand, my husband or I order something from Amazon at least once a week. And, I’m sure the UPS worker who delivers our packages hates us – he has to climb four flights of stairs every time he comes to our building. The convenience of not having to go to the store or the post office to mail something is wonderful.

3. Let’s face it – most people like being part of an exclusive club that purportedly has benefits that others do not have. We feel like we’re part of a special club with our other members. Amazon used this tactic to lure hundreds of thousands of new members on its Prime Day last week. Amazon hyped up the day so much that non-Prime members wanted in on the deal.

I also have a United credit card membership that charges me $50 annually, and I have yet to feel exclusive through the membership. I still pay baggage fees and the value of my miles seems to go down every year. They’ve got me cornered, however, because I’ve had my United card since I was in college and I do not want to open another credit card and I want my miles; my switching costs are extremely high because I’m already vested in the United brand.

4. The public stock is appealing. You should ask yourself if you would buy the underlying public stock of the company in addition (or in lieu of) the membership. Companies that have strong membership models tend to have very strong business models, which should help the public stock grow. Over the last 5 years, Amazon’s stock has gone up over 300% and now trades at $477. The company earned $88 billion in revenue in its 2014 fiscal year. Amazon does not break-out its membership revenue nor specifically tell you its members, but it claims tens of millions of Prime members. As a guestimate, Amazon derives over $4 billion in revenue from its 40 million membership base.

Costco’s stock has gone up 167% and now trades at $144, and the company proudly boasts its 42 million paid cardholders and 663 warehouses. Of the company’s $110 billion in sales in fiscal year 2014, $2.5 billion was derived in membership fees. Also, Costco’s retention rate is approximately 87% worldwide.

Now, the market has gone up over the last five years too, but companies like Costco and Amazon have created a stickiness with their membership bases that cannot be ignored.

 What's a lady to do? 

At this juncture, I’m going to keep investing in my Amazon and United memberships, but I will probably kick Costco to the curb soon because I’m not extracting a lot of value from the membership. You have to do what's right for you, but make sure your decision is an active one so that these companies earn their fees.

What investment (or not) will you make in an annual membership? I want to hear which ones you love or have stayed away from and which factors are important to you.

Is investing in a timeshare a great investment?

It’s the summer and I hope vacation is on your mind as much it’s on my mind. Eventually, I want to get to a place where vacation occurs everyday between 9am and 5pm, and work is what happens only 3-4 weeks per year. In the interim, I strive to find ways to go on vacation several times a year without incurring debt. One way that I accomplish this goal is to use my timeshare, which I purchased seven years ago.  

Several clients have asked me whether investing in a timeshare is worth it. I want to first share my experience, define what a timeshare offers, and then give the verdict along with tips to increase your chances of success.

My timeshare experience and how to buy a timeshare?

Let me start off by saying that I have a love-hate relationship with my timeshare.

If you haven’t been haggled by a timeshare salesperson, you’ve missed an important experience in adulthood. It happened to me when I was with a group of friends in the Poconos at my friend’s Wyndham timeshare. I went to a mandatory “welcome” meeting and I ended up buying a timeshare with 168,000 points to use every other year for $10,000.

They started off at $16,000 and a finance charge of 15%. After calling my Mom (who owned a timeshare) and getting her advice, I said “no thank you” to the finance charge and asked if I could pay over 6 months with 0%. I then negotiated down to $10,000. Now, that 168,000 points usually equates to 5-10 nights depending on the location and time of travel.

Now, I decided to pay cash over six months because I had a savings stash at the time that I purchased the timeshare. Since I already had some money in the stock market and I loved traveling, I thought it provided a good diversification strategy. I also knew that I wanted to put in the investment now while I had the money so that I could have someplace to go in the future in case I didn’t have a salary but still wanted to get away for vacation. It offered me a good retreat from the world during my early entrepreneurial journey, when I spent a lot of my money on the business. The timeshare has also come in handy for family and friend retreats.

What is a timeshare?

When you “own” a timeshare, you only own a piece of a property that usually resides in well-traveled vacation areas, like Florida or Mexico. Other people also own that same property and you share the use and cost of maintaining the resort over the course of the year. I compare a timeshare to partially owning a condo at a beautiful resort with a kitchen, washer and dryer unit; you pay for the property upfront and you also pay annual maintenance fees.

The main difference in owning a timeshare relative to other properties (including the condo), however, is that if you want to sell your timeshare, you will most likely get less than what you’ve paid for it upfront. So, you are buying a depreciating asset on the hope that you get a ton of intangible value such as:

• Fond memories in a spot that is not a hotel, someone else’s house, or an Airbnb location. [I definitely have fond memories of utilizing my parents’ timeshare as a child and even sometimes as an adult – thanks Mom and Dad]
• A consistent place to go on vacation with family and friends.
• The convenience of booking and knowing that you’ll be in a particular location well in advance, especially if you can book early and place is available.

Now, you buy depreciating assets like cars or clothes all the time when you believe that there are benefits and intangible value. But, the key is to recognize that you are making such a decision, minimize the lifetime costs and still acquire a quality purchase, and try to extract as much value as you can.

There are additional tangible benefits such as the fact that you can potentially lower the cost of lodging. This is particularly true if you have a big family, thereby eliminating the need for multiple hotel rooms. You can also cook and clean your clothes in a timeshare unit, so you potentially save real dollars in your vacation expense.

So, is a timeshare a great investment?

No, I believe a timeshare does not reflect a great financial investment, where one would expect a positive return on their money. Rather, I believe that a timeshare really reflects an alternative way to go on vacation, with a lot of intangible and some tangible value. Great financial investments usually go up in value, and your timeshare will not. Furthermore, many people do not pay cash upfront for a timeshare, and thus must pay a finance charge that can be 15- 20% to pay for the timeshare in installments – just like taking out an expensive mortgage to buy a home – which drives up the total cost of the timeshare. And, let’s not forget those annual maintenance fees, which can run $500-$1,000 per year.

With disruptive companies like Airbnb.com and luxurylink.com, you now have more vacation alternatives that drive down the cost of lodging. And, if you’re a bargain shopper on sites like Orbitz or hotels.com, you will dig deep for a low lodging costs. Also, if you’re single or like the flexibility of travel, a timeshare can feel like a money drain because you cannot extract as much value as the big families can.

Remember, you still have to get to the timeshare, albeit by plane or car, and this is no different than any other vacation. Also, if your schedule changes at the last minute or your family cannot coordinate a time to go, the timeshare is worthless because you are not utilizing it.

At best, I think a timeshare is a mediocre investment if you extract a lot of value from it. You have to know how the game is played to outsmart the timeshare industry, which generated $7.6 billion in sales volume in 2014. In an industry this big, you know it has figured out a formula that preys on the uninformed and vulnerable.

How do you extract value from your timeshare?

Here are my top 10 ways to extract value from your timeshare and outsmart the timeshare industry.

1. Know why you want to use your timeshare, albeit as a primary or secondary vacation alternative.
2. Minimize the cost of your timeshare by paying no finance charge or a very low one, and looking for units with low maintenance fees.
3. Negotiate the cost of your timeshare – it can be done.
4. Don’t fall prey to the “nice” and aggressive salespeople, who entice you with gift cards and other prizes. Be strong and smart, and you can come out on top if it’s what you want. If the salespeople hate you, as they do me, that’s a good sign you’re negotiating well.
5. Always ask a few people who’ve bought timeshares from the same company their advice on the financing deal, maintenance fees, perks, and drawbacks.
6. Ask one of your friends with a timeshare to refer you for a weekend getaway to experience the product before you buy (If you’re interested in Wyndham’s Vacation Resorts, which is mine, email me).
7. Ask if there are additional fees if you gift your timeshare, or allow a family or friend to go in your place. I’ve gifted several friends and family members several nights, and I did not have to pay additional feeds.
8. Go for the points instead of the weeks. With points, you get more flexibility in where you can stay.
9. See if you can a buy a timeshare in the secondary market (on Craigslist or Ebay) instead of buying it at a timeshare resort
10. Ask the timeshare people what the process and cost of selling the timeshare will be.

Remember, the whole point of a timeshare is to go on vacation. And, you want to be stress-free in doing so. Only you can determine if a timeshare is right for you, but now you’re armed with some tools to help you on your journey.

Let me know your timeshare experience and how you’ve outsmarted the industry!

Investing in a City on the Come Up

My husband and I recently traveled from Chicago to New Jersey for a weekend full of family festivities, and we decided to say in Newark. Even though I grew up on Long Island and lived in Brooklyn for 6 years post-college, the only time I spent in Newark involved traveling through the city by train or around the city by car. Before our trip, family and friends asked – “why are you staying in Newark?” And their immediate follow-up question became – “what is happening in Newark?” By the end of the trip, the same family friends asked whether I would consider investing in Newark now. Well, here are a few thoughts.  

First, we decided to stay in Newark because we could use our hotel points and stay several nights for free (thank you Starwood). It did help that we previously read about Newark’s revitalization efforts, which have been somewhat significant. After talking to some locals, driving around, and checking out the sites, I now wonder whether Newark could truly represent a great real estate investment opportunity. I asked myself why the city hasn’t attracted the same level of investment interest as Detroit, but more buzz than places like the Southside of Chicago.

Back in 2008, I got priced out of investing in real estate in Park Slope and it left a bad taste in my mouth because I had been living in the neighborhood six years prior. I told myself that I would always be on the look out for a new opportunity to invest in a neighborhood before gentrification takes over. Here are a few factors that I considered when seeing if I would invest in Newark real estate:

Local presence. I think living in (or at least somewhat close to) the community you’re investing in is important. Unless I had some feet on the ground to keep an eye on things, manage the property, and be in the know with the development of the surrounding neighborhoods, it’s hard to be committed to ensuring a return on your investment. The real estate investors that I have known to be successful are present locally.

Big business. When the businesses start coming, it’s time to take a deep look at opportunity. In Newark, Prudential and Audible.com had the most visible signs of big business anywhere in the downtown area. And while Teacher’s Village was a bright spot on our trip, it took us several minutes to realize we were actually in the place. We also stopped in a local Kmart on the outskirts of the business district, and I thought I went back in time about three decades. It was apparent that the store had not been updated in years and still had inventory from three years earlier. It’s comforting to here that Panasonic has moved its headquarters there, but I think the City still has a little ways to go.

Reviving arts and culture. Chicago’s own Theaster Gates has been championing the impact of art and culture on community revitalization, and I could not agree more. You cannot escape seeing the New Jersey Center for the Performing Arts in your view when driving around the City. Many residents and visitors frequent the center daily, and it is clear of its impact on helping the city get beautified.

The diversity. You must ask yourself whether a community of color, like Newark, will eventually become more diverse. Yes, this is the sad truth of gentrification. While we fight to change a housing market that systemically favors white economic mobility, we must be cognizant of this truth. When traditional communities of color get infused with other ethnicities outside of black and brown people, things change all around. Restaurants pop up, amenities appear, and the neighborhood will often lose its stigma of being “the hood.” While these are all good things, the same community of color usually does not participate in the wealth generated as a result of the neighborhood’s revitalization. So, you must be honest with yourself and see whether you want to invest in a community that has the promise of getting revitalized, yet a fighting chance of not getting too gentrified. For others, your investment returns because of gentrification might outweigh the social costs borne by the existing residents.

After giving the Newark opportunity some deep thought, the local presence factor is big enough to keep me from seriously considering Newark right now. I will keep my eyes on it, however, and concentrate on opportunities a little closer to home in Chicago. But, my newfound Newark excursion has sparked in me a desire to closely examine other neighborhoods that are prime for revitalization.

What will you do, and have you ever made an investment bet on a City ripe for revitalization?

Where is the Best Place to Invest?

Over the last few months, I’ve been getting the same question – Charisse, should I invest in the stock market, a new business idea, a new investment property, or pay down my debt? This question has been coming at me from all ages, income levels, and professional careers. So…. I have one answer for you that you’re probably not going to like – it depends. But, these 3 factors will help you figure out what’s best for you now:

1. Time Frame. What you want to achieve in the next 12 months is different than what you want to achieve in the next 3-5 years. In the asset management world, we use the fancy word of “time horizon,” but it’s the same thing. We’re pretty much wired in American society to have things on demand, but be careful not to get caught up in wanting things now without truly understanding how long it’s going to reap the benefits of your investment. You must figure out what’s important to you now and how can you prepare, at least a little bit, for your future life, and that of your family’s.

I am wired as a long-term investor, but I often know that there are short-term (less than 12 month) goals – going on vacation and getting a little extra money to replace a broken dishwasher – that I want to hit right now. This plays out in how I allocate money in a few ways. First, I make sure that all of my debt payments (mortgage, student loan, and credit card) do not take up more than 20% of my gross income because I do not want to be hamstrung by debt. You may say, “I can’t swing that. “ If you can’t, it means that you need to get you a little more income or find a way to reduce your loan payments. Additionally, I invest predominantly in mutual funds and exchange traded funds (ETFS) over a 3-5 year period and individual stocks when I’m trying to make some short-term gains.

Other friends will tell me that they have no patience for the long-term (or even medium term) because they can be gone tomorrow. One’s culture upbringing also plays a key role in shaping our propensity to make choices for the present versus the future. If you fall in this category, good for you – just be mindful that your future self will be so pleased that you spent some time planning for her (or him).

2. Time to Devote. Your time is your most precious asset, and so spending the time that it takes to commit to whatever it is you’re investing in will be key. Let’s be real – it takes time to do research and consistently keep up with any investment, so do not underestimate this factor as you balance other life priorities like family, perhaps a 9-5 or independent contracting job, or just doing NOTHING – which I’ve learned is its own piece of heaven (thanks hubby!).

Of all of the investment options, starting a business will take the most time and effort. And, I’ll lump investing in real estate into this category because your business here is property management and building ownership. Whether it’s the late night hours of thinking of how you can improve that first website or minimum viable product, or securing that first customer, it takes time! The beauty of financial instruments or serving as an investor (and not the entrepreneur) in business ventures is that you do not have to put up much sweat equity.

3. Other Pulls on Your Cash. In my mind, cash is king. First off, I’m a big fan of ensuring that you have enough money to eat and live indoors. If you cannot sustain the basics, putting additional money toward investing will be extremely difficult. Unless you either have multiple streams of income or an inheritance, most of us also have a fixed amount of cash on hand. My mantra has always been that you should always put your cash toward the asset (stocks, real estate, start-up) or liability (e.g. mortgage, student loan, credit card debt) with the highest rate.

Over time, however, I have morphed into believing that sometimes you have to put a little money into something that doesn’t have the highest return just to keep you in the game if you can spare it. For instance, putting a few hundred dollars into a brokerage account, even once a quarter, can get you in the habit of participating in the stock market and getting comfortable with pushing the “buy” button. Yes, there are phantom stock trading platforms (e.g. Yahoo, Etrade, Fidelity) that offer you the opportunity to trade without real money, but there is nothing like   If you’ve been a saver, however, you will have more cash and choices to allocate a couple of different ways.

Now that you have a framework for evaluating how you should invest your next dollar, share your plan. Let me know which of the three factors is most important to helping you figure out how you will invest.

The Keys to Persevering and Living a Long Life

Perseverance is hard to teach. Only through experiences can you persevere, but I believe that other people's journeys can leave a lasting impression on you; You can glean snippets of how to persevere when life presses against you on all sides. My grandmother turns 87 this week, although her flawless skin might make you think I'm lying by over 20 years. Her life and her fighting spirit should be inspiration for us all to keep fighting; she is the embodiment of perseverance. My "Grandma Shine" was born Naomi Pinnacle on June 17, 1928. She came into the world with pneumonia, an almost death sentence during those days. Many people said that she wouldn't make it, and that her twin sister, Ruth, would be twin-less.  Ironically, Ruth would die at the age of thirteen due to an appendix burst. Grandma Shine always tells me that Ruth's spirit continues to live in her, and that she has no doubt that she will see Ruth again in heaven. (I say - please, not yet grandma).  She believes that when you lose a loved one, your will to go on should be inspired by their life.

My grandmother finished high school late because her family did not allow her to go to school until she was eight-years-old. Even with the late start, she skipped two grades because she was a hard-working and smart student.  She played basketball, enjoyed learning, and eventually finished high school as Valedictorian with her eyes set on college. Her family, however, was poor; she and her siblings had to forgo their college aspirations to work and support the family. She did not stop learning because of circumstance, but rather, she pushed herself to get her education in the real world - she kept it moving despite the disappointment.  More over, she would provide an environment for (and insistence on) her kids to pursue their education, and eventually live through their collegiate triumphs.

Two days after her high school graduation, Grandma Shine packed her bags and took the long bus ride to New York.  She yearned for better employment opportunities than the Jim Crow South could offer. She landed in Harlem in 1949 with just a few dollars to her name and shared a studio apartment with a close friend. In 1950, my grandmother married Joseph Shine and gave birth to my mother, her first child of six.  By 1954, a few of Naomi's other sisters migrated from the South to join her up North.  She focused on her new family, leaving behind her past for the benefit of her future. She found her footing in an unfamiliar place and became her family's pioneer. Her determination, especially in the face of the unknown, is one of the distinguishing attributes of her perseverance.

In 1968, however, a building fire left the family's apartment completely destroyed and her family of 8 temporarily homeless, yet alive.  As anyone might expect, the situation depressed her because her home was symbolic of all she had worked for since migrating to NY. They eventually re-settled in NYC's now gentrified Chelsea neighborhood, and let time heal their wounds. Grandma Shine always talks about the loss of that apartment, underscoring the importance of honoring hurtful moments in one's journey because they remind us of how far we've come.

She has continued to fight her way through changes in technology and grand historical moments. I've tried teaching her texting and video conferencing, but she's un-phased by the need to pick up the latest gadgets.  I guess for someone who's lived through World War II, the Civil Rights movement, Vietnam, a walk on the moon, the invention of the TV, computer, 19 U.S. Presidents, just to name a few, innovation is second-nature.  As I watch her, it is clear that she has learned to quickly adapt to change, another key component to a fighting spirit.

I lived with my grandmother for 15 months after I turned one-years-old, and being around her influenced me more than I realized when I was growing up. I thought she was so stern when I was a kid, but by the time I got to high school, I recognized that her demeanor was rooted in a fight to keep on living. She now makes our family laugh anytime we see her - she is the life of the party.  It is hard for me to tell whether she has always been this funny or I whether I just did not see her as being humorous when I was a child. I'm sure it is the former. Nonetheless, she perseveres amidst all of life's challenges by letting laughter find its way into everyday life, even in crisis.

Grandma Shine stayed married for 46 years, and vowed to never marry again after my grandfather died in 1996. She has stayed true to her word despite the few suitors who she has "no desire to take care of and feed" in the best years of her life.  All six of her children are still alive, and she now has fourteen grandchildren and six great-grandchildren with a seventh on the way. I truly believe that her faith provides a light for us all.

I now live in Chicago and only get to see Grandma Shine a few times per year. Her juicy kisses, which I wouldn't let come near my lips as a child, are now eagerly anticipated treats. She also fills me up with homemade food every time I visit her. Her kisses and meals are full of love - the ultimate ingredient to preserving oneself each day.  She always leaves me with words of wisdom and I would be remiss if I did not share my top 10 favorites because they embody her will to keep going:

1.      Life isn't over until it's over. You have to fight.

2.      When I go to heaven, I will fight my way there.

3.      Be nice to me and visit me when I'm living, and please no hollering and screaming when I die.

4.      If I don't offer you anything, know that I don't have it.

5.      When I see someone else down, I will pick you up if I can.

6.      Don't say what you can't do. Do it for yourself. Do it for God.

7.      A lot of people want things, but don't want to work for the prize. Life is all about being a go-getter. You got to work for what you get.

8.      Why make your children's life miserable when you don't have to.

9.      When your money starts to look funny, you have to stop giving to others and support yourself.

10.    I use soap and water on my face, and that works like a charm.

I believe that this world is a little better because of the life of my grandmother.  Her presence is one of the closest things I've come to seeing God here on earth. She readily gives so much love toward others without any expectation of love in return.  Many people might have similar stories about their grandma, but for this day, Naomi Shine stands apart. She is our family's shero and embodies a life worthy of celebration for what she has given the world - her full self!

Happy Birthday, Grandma Shine - by living to this day in a manner that will continue to inspire many, you've persevered. I am so proud to be your granddaughter.

And I will borrow one last quote from you..."And that's it; that's the story!"

Five Strategies for MBAers to Reduce Debt and Drama

Do you know someone in a Masters of Business Administration (MBA) program? Or, maybe you are headed into a MBA program for the first time this fall. And if you're in the privileged position of returning for one more year of intellectual stimulation, or might I dare say parties and pre-school trips around the world, then good for you. Either way, I’m sure that you cannot spend five minutes in conversation without someone linking the word student to debt. I graduated from Chicago Booth’s MBA program in 2010 and some of us are still debating the value of our MBA given the high debt load we assumed. The average student debt can often exceed $100,000from a top 10 MBA program. I sympathize even more with the current MBA student because many elite schools have increased tuition 37% in the last 6 years. Many students are forced to take passionless career pursuits to earn enough money to cover their +$1,000 monthly student loan payment, delay their entrepreneurial dreams, or make different life choices around marriage and kids all in the name of their degree.

Absurd, right? Not for the MBAer because this is their reality, particularly in years immediately after graduation. Most MBA grads will eventually come to truly value their education, but this occurs in hindsight after their student loan balance decreases.

Over the last few years, we've seen the federal government develop many innovative solutions to reduce debt after you get your degree. And even the private industry has stepped in to help graduates refinance their loan, which can put thousands of dollars back in your pockets. Less attention, however, has been paid to help prospective student, especially MBAs, before they arrive at (or return) to campus.

Here are five strategies to potentially lower your debt burden if you are a prospective or current MBA student:

1. Take ownership of your controllable MBA yearly cost, really.

If you are going to get your MBA, your first step is to figure out what your total out-of—pocket costs will be. If you are already in a program, tuition is predictable, but you now have a better sense of what you are willing to pay on rent, transportation, and books. You’re probably considering other expenses that might have a high price tag like a Spring Break trip to Kenya to bond with classmates and have impact. I too took some class trips, so I lived with roommates to lower my housing spend, took public transportation, and structured quality time with classmates over tea and lunch instead of bars to cut my overhead. Making smart trade-offs can effectively lower your student debt load and give you ownership of your controllable MBA costs.

2. Check the federal government first.

Once you nail these costs down, the next step is how will you fund these costs.

Some of you will cover costs with your own savings, help from family members, or even leftover funds from a summer internship if you are heading back for year two. If you’re like most people, however, you will need to tap into the student loan machine. It is widely purported that the Federal Stafford Program should be your first line of attack, and I could not agree more since the rates are reasonable and there are alsoloan forgiveness and income-based repayment perks associated with the federal loan program. Since an MBA student can currently only borrow $20,500 per year from the Stafford program, borrowers who need more than this amount do have another powerful option – the private loan market.

3. Explore The Private Market For Your Situation

Let’s start with the premise that private loans can work in your favor if you get the right one, which will have an interest rate that beats the Federal Graduate PLUS loan, the federal loan option for graduate students after you’ve maxed out Stafford. The right loan for you should also have an easy application process, provide excellent service, and mimic the benefits offered with Stafford and PLUS loans, including a grace period for repayment and protection against income loss. To find the best rate on private loans, utilize your school’s list of preferred lenders, which is a great starting point for your research.

The two companies that are specifically focused on in-school MBA loans areCommonBond and SoFi, which were both started by empathetic MBA alums who wanted to provide an effective way to reduce debt. You can use this easy savings calculator to figure out the amount of money you will save by choosing CommonBond’s loan instead of a Grad Plus Loan in less than 60 seconds. I did the analysis and if I maxed out Stafford and needed $80,000 more in student loans, I would save $10,000 over the life of a 10-year loan at a fixed rate of 5.99% versus 6.96% in a Grad Plus (and assumes you get a 0.25% rate reduction on both from auto-paying). Keep in mind that CommonBond’s rates do not move based on your credit history; every borrower who gets a CommonBond MBA Student Loan has the same rate. SoFi also offers MBA loans, and the company offers both variable rates and fixed rates on the loans. Going the variable rate route comes with risk, including rates rising and an unpredictable monthly payment.

The smaller MBA loan providers have program perks that might be meaningful to you. For example, CommonBond’s 1-to-1 Social Promise program funds the education of a student in need abroad for a full year for every degree fully funded its platform. And, SoFi’s Entrepreneur Advantage program provides support to budding entrepreneurs.

Now, you can also go with more established private student loan providers like Discover, Sallie Mae, or Wells Fargo. Call anyone and I think you will be surprised at the level of detail you receive relative to the smaller and MBA-focused, companies like CommonBond and Sofi. Don't worry, these companies are well-funded so I suspect that they'll be around for a long time as they grow. A good rule of thumb is that if you plan to take out a private loan, make sure that it can mimic some of the important benefits offered with Stafford and PLUS loans, including a grace period for repayment and protection against income loss.

4. Focus on side-jobs to pay interest while in school

The life of an MBAer is incredibly busy with networking, classes, fun time, and oh yes, there's studying. But, if you can carve out any opportunities to earn extra money as a teaching assistant or some other job for which you have the skill to provide, then go for it. Also consider putting yourself in a position to earn rental income during your time at school, reach for the stars. I know this is a stretch but believe me, some of your classmates are making it happen. Buddy up!

If the job market gets tough, as is the current case for lawyers, you do not want to be saddled with more debt than you can handle. For instance, many law school graduates are underemployed; they are performing jobs that do not require a law degree because there is now a demand-supply imbalance at big law firms. As a result, a prospective MBA grad needs to fully consider lowering the total debt burden today to hedge against the risk that he or she may not earn the average +$100,000 salary post graduation.

5. Have a fearless attitude.

For many people, and MBA students are no exception, fear of the future can play a big role in our decisions today. If you fear student loan debt, there is no need to do so anymore. Capitalize on understanding what your total cost will be, try to reduce the non-tuition expenses even by a few thousand dollars a year, explore the Stafford loan option first, attack the private market, and get a side-hustle. If the numbers and overall perks do not work for you, guess what? You do not have to accept the loan.

You have one life to live and it’s yours to live most expectantly.

Fear not!