“Kara’s Quest” for Debt-Free Living (Interview)

I'm daydreaming about how I will teach my kids about money... my imaginary kids that I don't have yet, that is! Yeah, I'm a finance nerd. Below is an interview I did with a fellow friend, student, writer, and bank teller Samantha Bartley regarding my financial philosophies!

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Kara Walker is making a name for herself as a counselor and advisor in the world of finances. As a young and ambitious college graduate, Kara has dedicated a large part of her life to living a financially healthy lifestyle. In a world that encourages student loans, credit card debt and high-end spending habits, Kara has become a voice that speaks of living within one’s means. She has proven the effectiveness of this in her own life by graduating college debt-free and encouraging others to do the same.    Kara’s interest in finances and money management began when she was quite young. “I’ve been a saver as long as I can remember,” Kara says. “Saving money became important to me when I would sell something at a garage sale or get five dollars in a card from my grandmother. But it really hit home for me when I was thirteen and took Dave Ramsey’s Financial Peace University class at a local homeschool group. He laid out a definitive plan I could use for the rest of my life that just made sense.” This made Kara want to start saving for college right away, so she could graduate school debt-free and start investing money in hopes that one day she could help others in their own financial journeys. She accomplished this last semester after receiving her bachelor’s degree from Eastern Michigan University without accumulating any debt. This of course is something that very few can say, as a statistic from 2019 shows that 70% of college students currently have over $35,000 in student loans (Marketplace).

So what is her secret? How was she able to not only finish school debt-free, but also live a debt-free lifestyle with no debt to her name? While she has utilized many resources over the years, her advice to current and future students is to not only have a budget but stick to it. She says that this is the only way to tell exactly where one’s money is going each month. She suggests to first spend money on necessities like food, shelter and transportation. A small portion of one’s money can be used as “fun money” and at least 15% (or as much as possible) should be put in a saving’s account. “Pay off debt, save an emergency fund of three to six months expenses, then save for if you ever end up needing a new-to-you car or laptop for school or work.” Finally, she says that the bigger expenses in life like college can become a lot more affordable than most people realize. “You just have to find someone to pay for your college!" She is not referring to begging parents for the money, or starting a Go Fund Me campaign. Instead, she highly recommends applying for scholarships. This was one of the biggest ways that Kara was able to graduate without any student debt. Scholarships are more accessible than many may realize, and taking the time to apply is truly essential to graduating with as little debt as possible. Since graduating, Kara has started a consulting business called “Karabout Debt-Free LLC,” which is intended to help students find and apply for grants and scholarships for college. She is using her knowledge and experience to help other students thrive in their financial endeavors through college. On average, Kara is able to help students find 12-20 potential scholarship opportunities that could save the student thousands of dollars. This process can be as hands-on or hands-off as the clients wants, she says. “If they want to do all of the applications on their own they can, but I am also available to walk them through the essay writing process or whatever else they might need.” So what’s next for Kara and her quest for a debt-free way of life? She plans to continue running her financial advising business. She is also starting her first Roth IRA investment within the next month. “I wanted to do this so much these last few years, but I needed to wait until I was out of school debt-free to do so.” She also speaks of eventually becoming a certified financial adviser later in life to help people with financial concepts other than just saving or paying for college. “I’ll stay abreast of my investments and always try to keep learning about finances,” she says. “I even find myself daydreaming about how I’ll teach my kids about finances someday, if I ever have children.” But in the meantime, Kara plans to continue helping others. She currently has several social media accounts dedicated to her business. This includes an Instagram, a YouTube channel, and a blog all about her debt-free lifestyle and advice on how others can do the same. “Financial literacy has been an integral part of my life up until now,” Kara says, “and will continue to be, hopefully throughout my future generations.” Sources: “Why Do so Many People in America Have Student Debt?” Marketplace, 2 Oct. 2019, www.marketplace.org/2019/09/30/70-of-college-students-graduate-with-debt-how-did-we-get-here/.

Interviewed and written by Samantha Bartley.