Bobbi Rebell:
Newlywed Hilary Hendershott CFP® found herself with a limited cash flow after launching her own financial advisory firm, and started using her husband’s credit cards to make up the difference. What she considered to be a money secret she was keeping from her new husband, she discovered actually wasn’t, but was the catalyst that brought them together to discuss their finances as a married unit.
In Hilary’s money story you will learn:
-How as newlyweds, Hilary and her husband set up their finances
-The unseen pitfall that caught them both off guard
-Why Hilary considered spending money on her husband’s credit cards a “secret”
-What happened when she revealed her actions
In Hilary’s money lesson you will learn:
-Specifically what Hilary would do now in the same situation
-The exact questions you should be asking if your financial partners- romantic or otherwise
-Ways to motivate yourself to be financially open even in uncomfortable situations
In Hilary’s everyday money tip you will learn:
-Why she is against buying service plans from auto dealerships
-The tactics they use to get you to buy the plans and how to flag them
-How to find alternative options to keeping you car properly maintained
-How Hilary got burned at auto dealerships
In my take you will learn:
-The importance of discussing cashflow, not just revenue
-Why taking ownership of your actions is the key to finding solutions
-The biggest danger of not talking about credit card bills with your partner
-How identity theft can be more of a threat if multiple people use the same credit card account
EPISODE LINKS
Learn more about Hilary Hendershott and the Profit Boss® Radio Podcast
https://www.hilaryhendershott.com
Twitter: https://www.twitter.com/hilarythecfp
Instagram https://www.instagram.com/profitbossradio
Transcription
Hilary Hendersh:
I don't know if I'd found one of his credit cards laying around, or it was a credit card that I was using, or using intermittently. Well anyway, I started using this credit card to live off of. And this went on for months, and every time I pulled it out I felt like I was cheating or lying or stealing or something, but I was doing this thing that I didn't have agreement to do.
Bobbi Rebell:
You're listening to Financial Grownup. With me certified financial planner Bobbi Rebell, author of How to be a Financial Grownup. And you know what, being a grownup is really hard especially when it comes to money, but it's okay we're going to get there together. I'm going to bring you one money story from a financial grownup, one lesson, and then my take on how you can make it your own. We got this.
Bobbi Rebell:
Hey friends, so if you spend your significant other's money and you don't actively tell them that you are spending that money is that cheating? I'll let you guys be the judge.
Bobbi Rebell:
Quick welcome to our newest listeners and welcome back to everyone else. Hit that subscribe button while you are there. We do three short episodes a week to fit your schedule. Each episode delivers a money story from a high achiever, a lesson in takeaway so you can apply it to your own life, and an every day money tip to help you save and have more money. If you've got more than about 15 minutes feel free to binge, get a few lessons in a row.
Bobbi Rebell:
Okay, now to our guest, Hilary Hendershott. In addition to being the real deal, a certified financial planner who has been named one of Investopedia's Top 100 Financial Advisors she also hosts the Profit Boss Radio podcast, which I highly recommend. I'm going to be a guest on a future episode likely in the fall. She is also relatively newlywed but regrets keeping a secret from her new husband, or did she? Here is Hilary Hendershott.
Bobbi Rebell:
Hey Hilary Hendershott you're a financial grownup, welcome to the podcast.
Hilary Hendersh:
Thank you so much.
Bobbi Rebell:
And congratulations, you are one of Investopedia's Top 100 Financial Advisors, quiet an honor.
Hilary Hendersh:
Isn't that cool? Yeah, I'm honored to be ranked.
Bobbi Rebell:
And you are a certified financial planner, which we know is serious business, and of course your hit podcast Profit Boss Radio podcast, which I am huge fan of. So, welcome.
Hilary Hendersh:
Thank you so much, I'm really happy to be a financial grownup today.
Bobbi Rebell:
And you brought with you a great story and a very interesting one with a little bit of a plot twist. You were apparently using your husband's credit cards without his knowledge, but there's a lot more of the story, tell us.
Hilary Hendersh:
So for many years I worked for my father's financial planning for about 15 years. I went out on my own in 2014, so I took my clients and I formed a registered investment advisory firm. So here I am, I'm a bootstrapping entrepreneur and my husband was very generous, he said, "Of course, don't pay yourself for a while." And I think any of you who've started a business you understand you just really feel like all that dry kindling needs to go back onto fan the flames of the fire that is your new business. So I was not drawing an income from my business.
Bobbi Rebell:
And you were relatively newlywed, correct?
Hilary Hendersh:
We got married in 2013, yes so we were newlyweds. My husband had his own banking system, I had my own banking system we didn't join accounts, so I had separate checking account from him. So, I didn't think about the fact that we had set this scenario up where there was no money coming into the account that I was spending from. And so, I get to the end like I didn't want to go below $1,000 in this account, but there's no money coming in. I'm like, "What am I going to do now?" Well I happen to ... I don't know if I'd found one of his credit cards laying around or it was a credit card that I was using or using intermittently. Well anyway, I started using this credit card to live off of. And this went on for months, and every time I pulled it out I felt like I was cheating, or lying, or stealing, or something, but I was doing this thing that I didn't have agreement to do. And finally I was like, "I have to come clean honey, I've been spending on your credit card to live."
Hilary Hendersh:
And he said, "I know."
Bobbi Rebell:
So wait, but you didn't tell him and you thought he didn't know. I was about to ask you, wait who's paying these bills? Doesn't he look at the bills? So the people have auto pay.
Hilary Hendersh:
Well he was.
Bobbi Rebell:
People have auto pay.
Hilary Hendersh:
No, he paid the bills and I just thought maybe he wasn't paying attention. I don't know that he combs the transactions at a detailed level. It wasn't like the portal was accounting for this is Hilary's card versus this is your card. I don't know what I thought, I was just in denial. I think I just probably wishing and hoping that my surreptitious little activities were not being found out by him. But of course, we're married it's all joint assets anyway, but it was just the fact that I hadn't asked him or gotten approval, it wasn't what we had planned. It wasn't what we said would happen. And I said to him, "How in the world were we designed? How did you think I was going to get money? How was money ever going to come into my accounts?"
Hilary Hendersh:
And he said something about me taking profit distributions from my business.
Hilary Hendersh:
And I said, "But I wasn't taking money out of the business." He and I just had very different expectations of what was happening from a cashflow management perspective, but it was very cool that he gave me a very soft landing, because when I did say, "I've been using your credit card to live."
Hilary Hendersh:
And he said, "I know."
Bobbi Rebell:
Awe that's so nice. So then how did it evolve? What system did you put in place?
Hilary Hendersh:
Well now I'm on payroll.
Bobbi Rebell:
Right, but I mean did you just say, "Well okay, we'll continue this"? Or did you just merge your accounts then? Or did it just continue where you were just still using his credit card but you guys were open about it?
Hilary Hendersh:
I think a little bit of both. I think he like wrote me a check for $20,000 or something so I had money in my checking account. And then we did create a joint account so I changed my bank over to his bank, and now I'm on payroll from the business. So, our personal finances evolved and grew, but we really should have been spending from the same bank account before that. But, yeah so we just kind of dealt with it step-by-step.
Bobbi Rebell:
So what is the lesson for our listeners from that? What is their takeaway?
Hilary Hendersh:
I think it's really common at the beginning of starting a business for someone's spouse to financially support them. And if you're going to do that you just want to be clear where's the pool of funds that you're actually spending from? And you want to be I think in communication, how much can I spend and have us still be on track for our plan? What is your expectation here? I think the problem was that Robert and I just didn't fully talk through the plan. What saved me was my need to be ... I really am fundamentally an honest person. I'm like, "Uh I need to come clean here." But being open and transparent communication with your partner, your spouse is your financial partner. And so, being able to talk about that really helps.
Bobbi Rebell:
And it sounds like he is really supportive of the business.
Hilary Hendersh:
Oh tremendously. I could not have done it without him. Yeah, absolutely.
Bobbi Rebell:
All right, I want to talk about your money tip because it is something that so many people don't even think twice about, they just assume it's the best thing to do, but maybe not always.
Hilary Hendersh:
Yeah, so when you buy a car from a dealership they give you this schedule of appointments that you're supposed to be on for maintenance and tune-ups, that's a major profit center for those dealerships, those maintenance garages, or fix it places. So, I just went on Yelp and I found a four and a half star local mechanic and we take our cars there. I don't think I've had more than about $100 in maintenance costs over the last seven to eight years. One time I could literally hear the brake discs grinding on each other and I brought the car in thinking I was going to spend ... I had mentally budgeted like $1,000. I was like, "Maybe it'll be like $700 but I don't want to be disappointed, so I'll mentally budget $1,000."
Hilary Hendersh:
The guy said, "I'm going to retool it, it costs $49." It's like I can't spend money at this place if I try to, so that's my tip.
Bobbi Rebell:
So what do you think goes on that people are always feeling like they have to go the dealerships? And full disclosure, when we bought our car we did pre-pay for a maintenance plan. And so, we are locked in because we've paid for it, to our dealer.
Hilary Hendersh:
It's just a problem of information and education. A lot of people in my world, I see come into my office with things inside their investment portfolio that they don't understand, or aren't good for them, or have hidden fees. And under the hood of the car is the same thing. I myself, I know nothing about vehicles. And so, you want to trust dealer just sold you your car. You've been sitting with them all Saturday afternoon and they say, "This is your maintenance schedule."
Hilary Hendersh:
And you don't want to have to think, "Well I'm being taken advantage of or there's a way I can get it for a quarter of the cost." But you know these are huge profit centers for the dealerships and in my experience is I feel that I've been personally taken advantage of because I didn't know what to say or what to ask for.
Bobbi Rebell:
Well what happened at the dealer that you got burned?
Hilary Hendersh:
I think getting really high ticket maintenance bills. Having to do things like, "Well, we removed the rotor," or whatever.
Hilary Hendersh:
And then you go, "Okay can I see the part?" Because somebody tells you that in order to be a critical consumer you need to ask for your old parts.
Hilary Hendersh:
And they go, "Well, it's already at the dump," or whatever. Just signs of lack of credibility. And it's been so long since I've been to a dealership that I definitely am not going to remember the details, but just the fact of my maintenance costs went from several thousand dollars a year to under $100.
Bobbi Rebell:
Great advice. All right, before I let you go, tell me a little more about Profit Boss Radio and your mission, and a little bit about the show, and where people can find you.
Hilary Hendersh:
Yes, so Profit Boss Radio is your wealth mastermind. So, I take all the best of what I've learned over 18 years as a certified financial planner. I do solo shows on technical topics like, how to debunk economic doomsayers. You know those articles that always say, "The stock market's going to fall. The stock market's a huge bubble." I pull those articles apart and talk through every line item of them so that you understand how to think about and what to do about them when you read them. We've had finance experts such as David Bach and Dan Ariely on the show. I interview everyday entrepreneurs and even some really incredible everyday women, so not media experts but women who have done just remarkable things in their own financial life. I interviewed a single mom, she was left with no money and three kids, she had literally no income and now she owns a major clothing studio and online business living in the house of her dreams having paid cash for all of her kid's college. She was just an incredible interview. So lots of different kinds of topics. The show is designed to empower you financially to take control of your money.
Bobbi Rebell:
Well I am a huge fan of the podcast and of you. Where can people find you and follow you?
Hilary Hendersh:
If you have room in your podcast lineup check out Profit Boss Radio wherever you find your podcast online. You can find me HilaryHendershott.com and that is Hilary with one l and Hendershott with two t's.
Bobbi Rebell:
Thank you so much, this was amazing.
Hilary Hendersh:
Thank you so much for having me.
Bobbi Rebell:
Okay everyone here is my take. The first year's of any relationship that merges finances romantic or not is always challenging. Financial Grownup Tip #1, Hilary did talk to her new husband about the fact that she would not have income in the early stages of her business, but then she didn't follow up with exactly how the cashflow would work. So it was an incomplete discussion. Don't assume that your partner is making the leap to the next step. While Hilary takes ownership of her actions and feels she should have told him she was spending on his account, and she should have, why didn't he point out the charges to her? Because here's the really alarming thing about this story, given that he did not ask her or anyone about the charges that were appearing on his bill, how did he know that they were not unauthorized charges from strangers, and that his credit card and/or identity had not been compromised?
Bobbi Rebell:
So Financial Grownup Tip #2, if more than one person in your family is using a credit card or even a debit card you need to really be communicating. So taking it beyond the spouse example, maybe to build credit you put your teenage child on a credit card, or some people may give a caregiver a debit card to pay for expenses for a child. Make sure that person is giving you receipts or at the very least communicating what their buying. You may assume that because for example, they shop at Walmart every charge from Walmart is legit and is theirs, but a smart thief might make charges at places you already shop thus avoiding detection. Just think about it.
Bobbi Rebell:
Thank you all for spending some time with us. Feel free to binge a little and check out some other episodes. Learn more about Financial Grownup at BobbiRebell.com/FinancialGrownupPodcast and do follow us on social media. I am on Twitter @BobbiRebell and on Instagram at Bobbi Rebell 1.
Bobbi Rebell:
Hilary's relationship with her hubby is still going strong as is her growing financial advisory business. Be sure to check out Profit Boss Radio for more great insights from Hilary, and thank you to my friend for bringing us all one step closer to being Financial Grownups.
Bobbi Rebell:
Financial Grownup with Bobbi Rebell is edited and produced by Steve Stuart and is a BRK Media production.
Clever Girl Finance’s Bola Sokunbi is famous for saving $100k on a $54k salary in about 3 years. But then she started dropping $3,000 on a massive collection of luxury handbags, most of which she never even used.
In Bola’s money story you will learn:
-How she saved more than $100,000 on a salary of just $54,000 in three and a half years
-The side hustle that helped her reach that goal
-How after she reached that goal, she made a very unexpected spending splurge
-The fascinating reason, looking back, that she went down that path and kept going!
-The moment she woke up and realized she had to make a change
-Exactly what she did to get back on track and make a profit in the process
-The regret she had despite making money on her debacle
-Why she thinks so much about Amazon stock
In Bola’s money lesson you will learn:
-Why keeping her handbags in top condition was the key in getting a solid return when she went to sell them
-Other ways to maintain the value of resale able luxury goods like handbags
-Her take on investing in goods like handbags compared to the stock market and corporations
In Bola’s money tip you will learn:
-Ways to get luxury goods like handbags for less money without compromising quality
-Bola’s favorite pre-owned goods resources
-How friends can trade or sell handbags to each other
-Bola’s new strategy for buying expensive handbags
In my take you will learn:
-Why I compare Bola’s handbag venture to winning the lottery
-The difference between saving money and building wealth
-How to sell luxury goods like handbags, as well as other things you can sell, like baby strollers
-Why I do not promote buying fake goods as a cheaper option
Episode links
Bola’s website: CleverGirlFinance.com
Bola’s podcast: Clever Girls Know
Follow Bola!
Twitter Clever Girl Finance
Instagram Clever Girl Finance
Facebook Clever Girl Finance
LinkedIn Bola Sokunbi
Also mentioned in the show:
Vestiare Collective
Fashionphile
Rent the Runway
Transcription
Bobbi Rebell:
Support for Financial Grownup with Bobbi Rebell and the following message come from TransferWise, the cheaper way to send money internationally. TransferWise takes a machete to the hefty fees that come with sending money abroad. Test it out for free at transferwise.com/podcast or download the app.
Bola Sokumbi:
I've always been a handbag junkie. It's just something about leather. Like the smell of fine leather that just ... I don't know.
Bobbi Rebell:
You're listening to Financial Grownup with me, certified financial planner, Bobbi Rebell, author of How To Be A Financial Grownup. You know what, being a grownup is really hard especially when it comes to money, but it's okay. We're going to get there together. I'm going to bring you one money story from a financial grownup, one lesson, and then my take on how you can make it your own. We got this.
Bobbi Rebell:
Hey, friends. This is one of those, "She did not do that," episodes. My guest was a champ at saving money on a very low income, but once she had that money, things took in unexpected turn and then there was yet another unexpected twist to the story. Bola Sokumbi is a certified financial education instructor and the force behind the very popular, Clever Girl Finance, a website and podcast that empowers and educates women to make the best financial decisions for them. Here is Bola Sokumbi.
Bobbi Rebell:
Bola Sokumbi, you're a financial grownup. Welcome to the podcast.
Bola Sokumbi:
Thank you for having me. I'm excited to be here.
Bobbi Rebell:
I am such a fan of yours. First of all, in addition to being a money expert, you are the force behind Clever Girl Finance, which is a website and a podcast. It started after you. I don't even know how you did this. You saved $100,000 in three and a half years on a salary of, I want to say, about $50,000?
Bola Sokumbi:
Yeah. I was making $54,000 before taxes.
Bobbi Rebell:
Wow. Give us just the high level. How you did that.
Bola Sokumbi:
I basically got lean and mean with, probably, my finances. I contributed to my retirement fund from my employer because I knew they were offering a match and that was a way for me to get some free money. I kept my expenses super low. I avoided my friends and stayed home. I wasn't going out to eat very much. I wasn't buying alcohol. I was the-
Bobbi Rebell:
Temporarily, right?
Bola Sokumbi:
Temporarily.
Bobbi Rebell:
Right.
Bola Sokumbi:
I was in a steady ramen noodles and coke diet. I focused on saving 40 to 50% of my paycheck and anything extra.
Bobbi Rebell:
Wow.
Bola Sokumbi:
I save my tax returns, my bonuses. I try to save as much as possible. I also started a side hustle. I started a wedding photography business, which really helped to increase the amount of money I was bringing in. That helped contribute to me being able to save that amount of money. Finally, I avoided credit cards as best I could. I, instead, used a charge card that require me to pay my balance in full every month. That kept me really mindful about my spending, but overall, it was really just setting the intention that I wanted to save and I wanted to challenge myself to save six figures. I put my mind to it. I gone to that focus and three and a half years later, I was able to save that $100,000.
Bobbi Rebell:
So smart. In full details, if anyone wants, go to Clever Girl Finance. I want to talk about your money story that you brought because Bola, this is like an incredible story given what you just said.
Bola Sokumbi:
Yeah.
Bobbi Rebell:
Here you are. You got $100,000. You're hustling with a side hustle. You're eating ramen noodles. You're doing everything intentionally, maxing out your retirement account to get the max. What do you do? You start buying $3,000 handbags. Tell us what, what.
Bola Sokumbi:
Holla.
Bobbi Rebell:
What?
Bola Sokumbi:
Let me break it down. Basically, I got to this point where I had saved a ton of money. I had a lot of money in the bank. Actually, at the end of the four years, I had about $150,000 saved. I was making more money. I had my business. I gone raising at my job. I was earning, now, well over six figures at this point. I was like "Wow, I have all this money. I maxed out my retirement savings. I'm still meeting my savings obligations. I just have to treat myself." I've always been a handbag junkie. It's just something about leather, like the smell of fine leather that just ... I don't know.
Bobbi Rebell:
I personally would've bought a pint of Haagen-Dazs if I wanted to treat myself but okay. $3,000 handbags.
Bola Sokumbi:
I went all the way, yes. I got my first designer handbag like "Oh my God, this is amazing. It's beautiful. I bought this in cash. I love it."
Bobbi Rebell:
What was it? Describe it.
Bola Sokumbi:
It was a Channel Jumbo in black caviar leather with gold hardware, classic, beautiful.
Bobbi Rebell:
Okay. I wouldn't know.
Bola Sokumbi:
I got the one. Should've been enough, but then I was like well, few months later, I have all the spare money. I'm still saving. I didn't know what to do. I want to invest, but I don't need to invest that much. I'm going to buy another designer handbag. I got to the point where I was buying several handbags for maybe three or four years. To me, it was fine because I was still saving. I was still meeting my obligation.
Bobbi Rebell:
How much do you think you spent in total, Bola, on the handbags?
Bola Sokumbi:
Oh my goodness. I don't know. If we were to have an Instagram competition on who could grab their handbags steady for the next 30 to 60 days, I would win, every time.
Bobbi Rebell:
Wait. Wait. You're going to have a different handbag every day for 30 to 60 days?
Bola Sokumbi:
Yeah, I could. Yes.
Bobbi Rebell:
Oh my gosh.
Bola Sokumbi:
I could've. I have a lot of handbags. I had them in different colors-
Bobbi Rebell:
Were they just sitting in the closet? Were you taking them to work? What was going on with the handbags?
Bola Sokumbi:
That's the sucky part. I maybe use like two or three. Well, I was exaggerated. I didn't have 60. Exaggerating. About a month. Let's say, a month. I didn't really use them. That was a disappointing factor. I'm one of those people that believe that if there's something that you like and it's something that you're going to use, go for it as long as you plan it out financial, but I wasn't using them. They did not make financial sense for me. I was using like one or two of them, and then maybe the others, I would look at or wear to a baby shower for 25 minutes and it goes right back into the closet. It did not make any financial sense. Fortunately, for me, at the time that I purchase them, for those of you who are into handbags, knew that there have been a flurry of price increases especially with the higher end luxury brands.
Bola Sokumbi:
At the time I bought the handbags, I bought them before the crazy price increases started. I got to a point where I was like "Okay, this doesn't make any sense." I will look in my closet and all I would see would be dollar bills stacked up. My husband is like "You need to let these go. You don't even use them. It doesn't make sense. You feel so guilty about having them because you're not using them." I took it upon myself to sell almost every one of them. I still have a few. The ones I use. It was really hard to sell them because I felt like I was selling my children. It's crazy. When I think about it, it's ridiculous, but I sold them. Luckily, for me, because of the price increases, I was able to sell them for a lot more than I purchase. That very first Channel handbag, the black jumbo I just described with caviar hardware, I paid $2,900 for it and I sold it for $5,500.
Bobbi Rebell:
Oh my goodness. Only you, Bola, would actually turn a cringeworthy shopping habit into a positive investment experience.
Bola Sokumbi:
However, Bobbi, to the point you asked me before we started recording was, I made money but when I think about it, I really didn't make that much money because one of the things that trigger me to start selling those handbags was Amazon stock. I realized that if I had spent all that money I spent on those handbags on Amazon Stock, I would've had times 100 of what I had spent on handbags. Not just doubling my money. I would've like times 100 it, right?
Bobbi Rebell:
If you had actually bought Amazon Stock, but truthfully, how much do you think ... do you think you spent $90,000 on handbags?
Bola Sokumbi:
Oh, I don't know. Over a three to four year period, I spent a lot of money.
Bobbi Rebell:
Okay. You bought 30 handbags at $3,000 each.
Bola Sokumbi:
Yeah. I had about 30. They were not all the same price.
Bobbi Rebell:
Okay.
Bola Sokumbi:
They were not all $3,000 handbags.
Bobbi Rebell:
What was the most expensive one?
Bola Sokumbi:
The Channel handbags I had. They were about in the $3,000, $3,500 range at that time. Now, they're not anymore. They're about 6 to $7,000 now.
Bobbi Rebell:
Wow.
Bola Sokumbi:
I don't own any more handbags by the way.
Bobbi Rebell:
What is the lesson from this beyond the fact that there was a time in life when investing in handbag was actually an appreciable asset? Still, they probably know. I don't know the market, but anyway, beyond the fact that it actually turned on to be a good investment.
Bola Sokumbi:
I wouldn't even describe as an appreciable handbag because for me, it was just purely for the fact that I was not using them. No one is going to pay you top dollar for a handbag that has been worn and beat up. If you're buying something, I believe that you should be using it. Lesson for this is cost per wear. You can have 100 Channel handbags if you want to have them and if you can afford them and you're paying for them in cash and it's not taking off your financial goals, but what is your cost per wear. How often are you using them? Are you getting your money's worth? If you buy a handbag for $3,000 and you wear it once, then that one time you wore it cost you $3,000 and that makes no sense. If you buy this handbag and you wear it 3,000 times over four years, then that handbag cost you $1 or maybe it comes down to cents and pennies and that starts to make more sense because as opposed to buying $25 handbags over that three-year period and use that one handbag over that time and you get your cost per wear.
Bola Sokumbi:
To me, cost per wear is really important. That's how I plan out my wardrobe. I still buy fancy things, but I have to be using them. I have to get my cost per wear down to pennies for it to make sense. I know when I see something if I'm going to use it or not. Understand your cost per wear. People may think, "Oh, buying handbags is crazy," but people spend their money on different things. For me, it was the handbag thing. Some people spend their money on electronics, on cars, on things that they don't necessarily use like having a second car in your garage that you drive on Saturday is not good to drive per wear.
Bobbi Rebell:
The handbags make you feel good.
Bola Sokumbi:
Yeah. I would pick a handbag over a lot of things. That was me. That was a lesson I learned. I put the money right back into my investment accounts. I was better for it.
Bobbi Rebell:
Let's stick with the handbag thing. What is your money tip, your everyday money tip for everyone?
Bola Sokumbi:
I would say that if you are a handbag girl like me, no shay, no judgment, find ways to get the handbags that you like at a cheaper cost or without putting out so much money. For instance, Bobbi, you and I talked about Rent the Runway. You really like that. If you want to actually own them, you can think about getting them preowned from sties like Fashion File or Vestiaire Collective. There's a bunch of different ones that are reputable that sell authentic products or even local consignment stores in New York. There's a ton of them. Or buying them off of friends who are trying to let go of their handbags or trying to recycle their wardrobe. Those are great ways that you can get luxury at a lower cost. You can also wait until some of these handbags go into the sale and purchase them that way.
Bobbi Rebell:
Right. Because a lot of them are really classic.
Bola Sokumbi:
Yes. It's all about buying something that you know you're going to use for a long time. I tend to avoid any trend pieces because I don't want to be out of fashion next year after spending all this money on it. I buy bags that I can carry forever. That's what I do. Every purchase I make right now, I carry that bag to shreds, basically.
Bobbi Rebell:
Definitely. Get that cost per wear down. Where can people find you and learn more about Clever Girl Finance?
Bola Sokumbi:
Yeah. You can find me on my website at clevergirlfinance.com, on Instagram at Clever Girl Finance, on Facebook, Clever Girl Finance. I also have a podcast called, Clever Girls Know. You can search for it on iTunes, Stitcher, Sound Cloud. You'll find it there as well.
Bobbi Rebell:
I think everyone should definitely check all of that out. I am a big fan. Thank you so much, Bola.
Bola Sokumbi:
Thank you for having me, Bobbi.
Bobbi Rebell:
Hey, friends. Except for the fact that she was ironically able to sell the handbags at a profit, this whole thing reminds me of what happens when people inherit a ton of money or they win the lottery and then they just don't know what to do, so they go shopping. Financial Grownup tip number one, Bola was great at accumulating money but she was selling herself short when it came to building wealth. She was meeting her goals in terms of saving and investing and all that, but that doesn't mean she couldn't move the goal post given the resource that she had and make even more ambitious goals. Not a problem to buy a bag that you can afford, but she wasn't even using most of them. Bola is very specific that, well, they ironically went up in value if she had invested the money. In her case, she talks about Amazon Stock, she would've made a lot more money. Of course, you could lose money in the stock market. There's no guarantee of that. It's just something to consider.
Bobbi Rebell:
Financial Grownup tip number two, if you do buy luxury goods and you aren't using them, it is easier than ever to sell them, so many resources online. You may not make as big a profit as Bola did, you may lose money but you're still going to get some cash. I have sold some bags on the real wheel. I've been happy to have the cash even though it went for less than I paid. You can also buy slightly used bags there at a discount if you want them. As I've said before, you can rent them at Rent the Runway or other similar websites. I will leave some links in the show notes for you guys. Given these resources, I would also urge you to stay away from the fakes. It undermines the economy and the business of the companies that produce the real thing. Don't buy fake bags. Also, it is illegal.
Bobbi Rebell:
We want you to be a financial grownup. Send us an email to info@financialgrownup.com if you want to be considered for one of our monthly listener episodes. Just tell us what the money story is that you want to share and your everyday money tip. If you have not already, please rate and review the podcast on iTunes, Apple Podcast. That helps others discover us and grow the community. It is truly appreciated. Make sure to subscribe so you don't miss any upcoming episodes and follow me at Bobbi Rebell on Twitter @ bobbirebell1 on Instagram and on Facebook, I am at Bobbi Rebell. Bola is the best. I am so appreciative that she was brave enough to get really candid. She definitely got us all one step closer to being financial grownups.
Bobbi Rebell:
Financial Grownup with Bobbi Rebell is edited and produced by Steve Stewart and is a BRK Media Production.
Rebecca Jarvis, ABC News Chief Business, Technology and Economics Correspondent, and Host and Managing editor of the “No Limits with Rebecca Jarvis” podcast learned her financial lessons early.
But the truth about the value of that education really came to light when she learned what was going on with a dear friend.
You will learn why you want Rebecca, and friends like her, on your team.
Rebecca's money story:
The money lessons from her journalist mom that set her on the right path
How Rebecca has helped her friends who have run into money trouble
The ways that poor money decisions can hurt your opportunities, including jobs
How banks sometimes lure young people into borrowing more money than they can afford
Rebecca’s lesson:
specific tools to figure out wants vs. needs.
advice on how to maintain a budget
her favorite app for managing money
Rebecca’s money tip:
How to make sure your education pays off
What kind of classes to take post-college
To be featured as a women entrepreneur of the week email Rebecca Jarvis nolimitswithrjpodcast@gmail.com
Links to people and things we talked about in this episode
Rebecca Jarvis learned her financial lessons early. The truth about the value of that education really came to light when she learned what was going on with a dear friend. Listen to this Financial Grownup episode to learn Rebecca's advice on how to maintain a budget and her favorite app for managing money. #MoneyManagement #Budget