Bobbi Rebell:
Financial Advisory Winnie Sun learned a brutal lesson just before she went off to college after her frugal and hard working parents lost her college fund in a failed real estate venture.
In Winnie’s money story you will learn:
-How her parents well-planned college funding evaporated right when she needed it
-The compromises Winnie made in reaction to the news
-How Winnie funded college
-The shift in Winnie’s relationship with her parents as she became a source of financial support for them
In Winnie’s money lesson you will learn:
-Why Winnie sees the unexpected financial challenge as a blessing in retrospect
-How Winnie applies what she learned to teaching her kids about money
In Winnie’s everyday money tip you will learn:
-How Winnie travels around the world for free
-Exactly what to do to upsize your point score when you shop
In My Take you will learn:
-The importance of supporting family and friends in financial need including older generations
-The best ways to leverage airline and credit card points over the holidays to lower your out of pocket gift costs.
EPISODE LINKS
Learn more about Sun Group Wealth Partners
Follow Winnie on social media!
Twitter: @WinnieSun
Instagram @winniesundotcom
LinkedIn Winnie Sun
Facebook Winnie Sun
Some of the links in this post are affiliate links. This means if you click on the link and purchase the item, I will receive an affiliate commission at no extra cost to you. All opinions remain my own.
Transcription
Winnie Sun:
... we're proud of you for getting in schools that you want to get into but you can't go to college because remember that project we invested in in Claremont, well, the partner went bankrupt and so they're pulling us into bankruptcy. And so it's not just paying for college but we got to worry about paying the house and keeping the family together, like financially how we're going to keep this in one piece.
Bobbi Rebell:
You're listening to Financial Grownup with me, certified financial planner, Bobbi Rebell, author of how to be a Financial Grownup. But 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 Financial Grownup one lesson and then my take on how you can make it your own. We got this.
Bobbi Rebell:
Hey, Financial Grownup friends, imagine if you had really financially responsible parents. They saved, they invested for your education, and then right when it was go time, the money went poof. That happened to investment advisor, Winnie Sun of Sun Group Wealth Partners and how it unfolded will keep you on the edge of your seat. Welcome, everyone to the Financial Grownup podcast. We talk to high achievers like Winnie Sun about pivotal money-related events in their lives so we can all learn from them. And we keep it short to about 15 minutes because you're busy. And with that, let's get right to Ms. Sun. Her story has a big plot-twist and stay to the end because Winnie has some great advice for up-sizing your point-score when you shop so you can travel in high style and for free, in many cases, like she does. Here is Winnie Sun.
Bobbi Rebell:
Winnie Sun, you're a Financial Grownup. Welcome to the podcast.
Winnie Sun:
Thank you so much, Bobbi. Excited to be here.
Bobbi Rebell:
Congratulations on all of your success with Sun Group Wealth Partners. You're also known as the Wealth Whisperer and of course, you were on the CNBC Financial Advisor Council which is a huge honor. You're all over the media and you're social media is amazing. I'm so excited to have you on.
Winnie Sun:
Thank you, I'm excited to be here with you.
Bobbi Rebell:
And you brought a wonderful bunny story that has a great happy ending. You were a senior in high school and your parents came to you with some shocking news.
Winnie Sun:
Yes. Yes. I was so excited about going to college. It's senior year, we're having a grad night and everything else. And I came home one day and I could tell there was something going on. I mean, there was just something going on with my parents. And my mom, I could tell, she came to talk to me. And my mom, just to give you some reference is like literally hard as nails. I mean, she's like an iron fist. I mean, she's a person that if you came home with anything less than an A or an A-plus, we would be in big, serious trouble.
Bobbi Rebell:
Right. So all of high school you're working hard. You're getting the straight As to go to a top school.
Winnie Sun:
Right. So I got into all the schools I wanted to and then she says, "I just want to let you know, we're proud of you for getting in schools that you want to get into but you can't go to college because remember that project we invested in in Claremont, well the partner went bankrupt and so they're pulling us into bankruptcy. And so It's not just paying for college but we got to worry about paying the house and keeping the family together. Like financially, how we're going to keep this in one piece." And so that was really sort of my first, big, scary financial moment.
Bobbi Rebell:
And had you had any inkling that this was such a risky project? Had you ever been involved in the family finances before?
Winnie Sun:
No, not at all. And in fact, I had zero interest in finances. It was really a project they had invested. I heard about that they were investing in this project but I didn't know my college education depended on this. They never even told me that. All I knew is that they invested in something and it would be for our future and all I needed to worry about was my grades. Because they were always really highly responsible with money. I mean, my family didn't spend money on anything. I remember going to Burger King for a 39 cent hamburger and this was like a treat. We do this maybe once a quarter. We just didn't spend money. And my parents were like incredible savers. They just invested in the wrong thing at the wrong time.
Bobbi Rebell:
This came as quite a shock. Had you had a job in high school at all? Did you have your own income in any way?
Winnie Sun:
I did. I worked all through high school. My earliest childhood memory of making money was when I was seven years old. I was selling avocados in my front yard. And then at nine years old, I was working in my parent's restaurant. I worked the cashier and I remember this because this is before really high-end equipment. And I actually memorized the tax card or tax code.
Bobbi Rebell:
Wow.
Winnie Sun:
I memorized how much sales tax was on every item, like soda or pizza. Yeah, that's what I did.
Bobbi Rebell:
So your family was hard working. They were budget minded. They were frugal.
Winnie Sun:
Yes.
Bobbi Rebell:
And they were investing for the future where they just put too much into the wrong investment at the wrong time, unfortunately.
Winnie Sun:
Exactly.
Bobbi Rebell:
And so tell us more about how that then played out.
Winnie Sun:
I decided to go to UCLA, which was local, instead of I was looking at Caltech, I was looking at Stanford. But financially, UCLA made a lot of sense because it was just about an hour and a half away from home and it was a public school. And I was excited about going there. And it also gave me an opportunity to start working right away because I had worked that summer right after the news hit senior year and then as soon as I started as a freshman at UCLA, I remember right after my first class that afternoon I made my way to the internship office to find work.
Bobbi Rebell:
Wow. And meanwhile, how were your parents recovering? What happened to them?
Winnie Sun:
Well, my mom is tough as nails, like I told you. So she got back to work. I mean, they were already in the real estate business. So my mom just ended up working that much harder and my dad helped here wherever he could. And then my job was just to not only do well in school, but just really find work. So I was juggling like two or three jobs throughout college.
Bobbi Rebell:
What kind of jobs? What jobs did you have?
Winnie Sun:
Well, I actually work access control at night which is where people want to get into dorms but you have to check their ID. So I worked the night shift. And then during the day, I'd go to class. And then I had an internship at a television show called Jones & Jury. And then I worked at an entertainment company as well. So I just did whatever I could do.
Bobbi Rebell:
Wow. You were busy.
Winnie Sun:
Mm-hmm (affirmative).
Bobbi Rebell:
And did you then have to help your parents with their finances?
Winnie Sun:
I did. So I got student loans and all that. And then whatever money that I could ... which wasn't a lot, whatever I could then I would give to my mom and help her out. And then the rest I just had to have enough money to pay for gas to go to work or some school supplies, books and things like that, that was all my responsibility.
Bobbi Rebell:
So what is the lesson for our listeners, what is the takeaway from this story for them?
Winnie Sun:
You know, I look back and I think it was the biggest blessing that could have happened. Because when you have financial hardship, it's all about perspective. Understand that this actually makes you much stronger financially and mentally when you get older. So I look at my own kids and sometimes I feel bad because they're not going to have these sort of same experiences because that struggle is what makes us better at money and in our entrepreneur spirit. But really, understand that it's important to see our options and also to have good financial literacy and have a second opinion on what you're doing.
Bobbi Rebell:
I know you work very hard at educating so many people with all of your different media projects. One thing you are passionate about, especially as we get towards the holidays is travel and leveraging your travel points. And you're going to share some of your tips for this because we're all obsessed with points. Let's be honest, we love points. There's something about them that gives ... It's almost like playing the lottery, like what will I choose now. You feel like you've won but there are ways you can win bigger with them. So tell us, what's your everyday money tip?
Winnie Sun:
I love this. You are my people. So my biggest thing is I love like the whole work-life balancing. And people talk about it all the time but I think you really have to be mindful and I do this to the fullest extent. So yes, you and I work a ton but on my off days, and that's like weekends or any holiday, I try to take my three kids and my husband all over the world. We are like travel maniacs. And so the best way I love to travel is to travel for free and how I do that is I travel on points. A lot of people think oh, yeah, I have a points credit card and a cashback card, I do that and I hear that all the time.
Bobbi Rebell:
But it takes so long to get enough points. You have a family of five, Winnie, that's a lot of points.
Winnie Sun:
But I get a lot of points.
Bobbi Rebell:
How do you get them all?
Winnie Sun:
I might teach you some ways. Especially going to the holidays because you and I talk about this. I love this idea. Now, during the holidays, you can actually rack up points much more quickly than any time during the year. And the best way to do that is to leverage normally credit cards that give you a nice healthy points like sort of multiply on where you spend. But also take a look at where you travel on, like, for example, if you travel on certain airlines that take American or Delta or United, each of these airlines has what they call a shopping portal. And if you go to these shopping portals, it gets to the website that you want to shop at, you can actually double dip and sometimes triple dip on points meaning the credit cards will give you points for that purchase and then the airline portal will give you miles for that same exact purchase. And this could be all sort of regular companies such as Target, and Walmart, and Amazon, typical stores that you and I would shop at. It's just a matter of taking that extra step.
Winnie Sun:
So what I always say is don't shop directly on a website itself. So let's say you want to buy at Target. Instead of going to the Target website, you should always go to either the airline portal or the credit card portal and then link over to Target. Because by doing that extra step, it will take like an extra 30 seconds, you'll then get an extra level of either points or miles which adds up really quickly.
Winnie Sun:
And then once you have the points, then take a look at your credit cards because your credit cards will often do bonus deals, airline deals, or hotel deals, and you can get like sometimes up to an extra 40, 50, even 100% more on your points for the same exact purchase.
Bobbi Rebell:
Amazing. Amazing. Tell me more about what's going on with you. I know your baby right now is your LinkedIn series. Tell us more about that.
Winnie Sun:
Yes. We got really excited about doing this and I think the project happened around, my goodness, about six months ago. And we said, you know, let's try something because people don't really have all day to hear about financial tips nor do they have the interest to learn about financial tips every day. What if we made these tips no longer than 90 seconds? Would they listen? So the videos themselves are every single day on LinkedIn and they're 90 seconds. And so if you literally just watch the videos, you'll get one really meaningful financial tip every single day. And we did that every day for I think almost six months and we plan to actually continue it even more so into the new year. A lot of people have been asking us to go Saturday and Sunday which we don't go right now.
Bobbi Rebell:
Oh, my gosh.
Winnie Sun:
But I think we're going to do that. I think we're going to be that crazy.
Bobbi Rebell:
Well, I am blown away by all of this. I love seeing you on so many different media outlets. Tell us more about where else besides LinkedIn people can find you, follow you, and learn more about you.
Winnie Sun:
Well, thank you. Well, you can get free follow me on Forbes. I've been writing, contributing to them for about five years now. I do a lot of work with CMBC and I'm the regular money person on Good Day LA for those of you who are in California. But otherwise, join me on Twitter. I have actually the largest financial tweet chat every single Wednesday and we cover not only financial things but entrepreneur topic, social media marketing, all that fun stuff to give you chance to really increase what you carry in your wallet.
Bobbi Rebell:
Love it all. Thank you, Winnie.
Winnie Sun:
Thank you.
Bobbi Rebell:
Hey everyone. Love ending on such a positive note. Financial Grownup tip number one. Family sticks together. Yes, Winnie was absolutely frustrated and with good reason at how the financing for her college education fell apart. But her parents clearly love her very much and your tone of both forgiveness and being there for them when they needed her sets such a great example. Sure, things are simpler and more traditional when parents are helping their kids financially, but that doesn't preclude the value of having generations helping each other out if that's the way that things evolved.
Bobbi Rebell:
Financial Grownup tip number two. Points tied to travel. Whether it is airlines or hotels have become a currency. Winnie likes to use her points for airplane tickets and upgrades but the possibilities are endless. In theory, we should all use that for what we get the most bang for our buck as but sometimes, there are other uses that just make sense, that just actually save us from spending actual cash. For example, this holiday season, if you have a lot of points, maybe consider buying gift cards for your favorite stores. Now, some stores within the credit card offers, some cards even run specials where you get more points than usual for certain designated retailers.
Bobbi Rebell:
So look for that. Look for the one and they're usually in market where it's normally let's say 20,000 points per this dollar amount but right now, it's going to be 25,000 points, whatever it may be. Then you could use those gift cards to buy presents for the holidays for your friends and family and not spend actual cash and certainly avoid running up credit card bills that you can't afford to pay or just kind of would rather not have. How about that one?
Bobbi Rebell:
All right. Thank you all for supporting the show. Please invite your friends to join us as well and [inaudible 00:14:14] your favorite ways to use your points. Instagram is Bobbi Rebell one, Twitter Bobbi Rebell, and you can always email us at hello@financialgrownup.com. And, of course, thank you to Winnie Sun for helping us all get one step closer to being Financial Grownups.
Bobbi Rebell:
Financial Grownup with Bobbi Rebell is edited and produced by Steve Steward 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.
“The Big Life” author and former Seventeen Magazine Editor-in-Chief Ann Shoket’s boss literally mocked her when she asked to get paid more as a young magazine editor. Now, she knows better. Ann shares the one thing she does to find out what to ask for in negotiations, and how she leverages it to make more money.
In Ann’s money story you will learn:
-How as a young magazine editor, Ann loved her job, but her compensation was not in line with her contributions.
-How Ann prepared to approach her manager about a raise
-The shocking reason the manager denied her request
-The uncharacteristic response Ann gave to his pushback
-Exactly what Ann would do if she could do it over
In Ann’s lesson you will learn:
-How the resources of today could have helped Ann get that raise
-The specific advice Ann offers millennials
-Where and how exactly listeners can get the information they need to better negotiate
-How to find out what you are worth in the job market
In Anne’s money tip you will learn:
-The best way to approach colleagues and friends to share salary and compensation information
-How e-mail vs IRL compare in sharing sensitive information about compensation and other career advice
-Why it is so important to Ann that she help other women
-The specific language Ann uses in her conversations about money and other compensation with her peers
-How to handle issues of competition with peers and colleagues after sharing information
-What Ann learned from millennials about transparency
In my take you will learn:
-The importance of creating networks and career allies to share pay and other relevant information
-How to decide and communicate boundaries regarding the information
-How to decide if it is best to share information over email or IRL
-The importance of security when sharing sensitive information online
Episode Links:
Ann’s Ted Talk: Why We Should All Be More Millennial
Anne’s book The Big Life: Embrace the Mess, Work Your Side Hustle, Fie a Monumental Relationship and Become the Badass Babe You Were Meant to Be
Anne's website:
AnnShoket.com
Follow Ann!!
Twitter @annshoket
Instagram: @annshoket
Facebook Ann.Shoket
LinkedIn Ann Shoket
Transcription
Bobbi Rebell:
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Ann Shoket:
He looked at me and he said, "You know Ann, you don't go into journalism to get rich." I was so stunned. I wasn't asking to get rich, I just wanted to pay my bills.
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 everyone. So this episode is going to be a treat and perfect for anyone that feels they could, and let's face it, should, be earning more money. You may have a boss you need to convince or you may have your own business and need to figure out how to charge your clients more and grow your business. Ann Shoket is a big name. She first became famous as the editor-in-chief of Seventeen Magazine and was named by Forbes to be one of the most powerful U.S. fashion magazine editors. More recently, she penned The Big Life and started a Badass Babes community. And being a badass herself, she also has an amazing TED Talk called Why We Should All Be More Millennial. Which brings us to the advice she is going to share, because it is about using that idea to get paid more money. Here is Ann Shoket.
Bobbi Rebell:
Ann Shoket, you are a financial grownup. Welcome to the podcast.
Ann Shoket:
Oh, I'm so excited to be here.
Bobbi Rebell:
Congratulation on your massive bestseller, The Big Life, and more recently your TED Talk, which I've now watched a number of times. You are literally the Jane Goodall of millennials, so I'm so excited to be talking with you.
Ann Shoket:
Thank you. I have devoted my career to understanding millennials and supporting them and helping them find their power.
Bobbi Rebell:
Which brings us to the money story that you're going to share, which really has to do with trading money for meaning at work. Because of the importance really of meaning, because we spend so much time at work.
Ann Shoket:
So when I was sort of mid-level editor coming up in the world, just past the stage of eating ramen and scrounging and going to happy hours to have dinner, where I had some experience under my belt and a little bit of a salary, I was creating new content for my company and doing great innovations and I wanted to get paid more. And I remember I walked into my boss and I came in with a list of things that I had achieved, I'm no dummy, you know, you come in with these [crosstalk 00:03:09].
Bobbi Rebell:
So you were prepared, right.
Ann Shoket:
It wasn't entitlement, I was prepared for this conversation, and he looked at me and he said, "You know Ann, you don't go into journalism to get rich." And I was so stunned. I wasn't asking to get rich, I just wanted to pay my bills. And frankly, I wanted to get paid for the work I was doing and for the good work that I knew I was bringing them. And I remember feeling instantly small, as if I had asked for too much or my ambition was too obvious, and I backed off of my request. I felt small, I retreated. He made me feel like I should feel lucky to be in that position. And maybe it's true, it's a competitive world that we're in-
Bobbi Rebell:
But you had worked for that position. I mean, yes, many other people would love to be in that position but you had earned it and you were working.
Ann Shoket:
And probably the worst part is I loved my job, I really did and he knew it. I loved my job, I was engaged, I was doing good work, I was doing work I felt was meaningful. I was on my path to finding what felt like my purpose, I was doing something real. And he used that to make me feel small in a salary negotiation and I didn't go for the big dollars and I didn't push hard and I backed off immediately. And could I do it all over again, I might have left that meeting, gone back to my desk, and then come back with a nuts and bolts, "Here's what other people are making in my position." It was at a time where frankly we didn't have Glass Door, we didn't have a million ways to check our salaries, so I didn't know what other people were making.
Bobbi Rebell:
Well, was it that other people were making more or that they were just paying you very little? We don't really know I guess, we don't know.
Ann Shoket:
I don't know.
Bobbi Rebell:
We don't know.
Ann Shoket:
I don't know. But had I had the resources available that we have today and had I had the benefit of greater perspective on the world, I would have taken that moment and figured out how to get paid what I thought I deserved at that time. I would have really pushed for it rather than feeling small and retreating.
Bobbi Rebell:
So now we are years later, you are the voice for so many millennials, you are teaching them so much. What is your lesson from this that you would share to them if they find themselves in a similar situation?
Ann Shoket:
Knowledge is power. So if you know what other people at your level, in your company, who sit next to you in the competitive company, are making then you have a much greater leverage to get paid what you deserve. Women say to me all the time, "I just want to get paid what I'm worth," and I am like, "That's great, except for how do you know what you're worth?" And the only way to know is to share your salary information.
Bobbi Rebell:
Right.
Ann Shoket:
If you walk away from this interview right now with only one thing, it's share your salary information with a trusted colleague, someone who sits next to you, your regular lunch buddy, but share your salary information. It's not gratuitous, it's not for gossip purposes, but it's so that you know and are better prepared when you go into your own salary negotiation.
Bobbi Rebell:
So sticking to this theme for your money tip, you've talked about sharing your salary information but are there specific ways and specific resources that you can tell people about that can accomplish this goal? Because it's a little bit awkward to just go up to people and say, "Oh hey, tell me what you're making and I'll tell you what I make and it will be all good." I mean, how do you actually ... Are there certain things that you look for with someone that you feel you can trust them? Are there websites you can go to, are there chat groups? Specifically how does this happen? Because it's awkward, right?
Ann Shoket:
It is awkward and I'll tell you, the first time that someone asked me to ballpark my salary for them it came in an email-
Bobbi Rebell:
And was it a close friend, was it someone you knew well?
Ann Shoket:
It was a colleague.
Bobbi Rebell:
Okay.
Ann Shoket:
Not a close friend. It was a colleague and we had been supportive of each other over the years. And at first I was so shocked, I was like, "Can you believe the nerve of this woman! I would never share my salary information with her!" And I calmed down and tried to get a little perspective and I gave her some sort of halfway information that she may be able to use, I didn't go all the way.
Bobbi Rebell:
In writing, in writing.
Ann Shoket:
I did, I emailed her back in writing.
Bobbi Rebell:
Okay.
Ann Shoket:
However, if I did it again I would 100% ballpark and tell her the number. I was so stunned by it but I realize she was so ahead of the curve in even asking. And I have since been in a position to help other women where I've talked about what I got paid and about the ins and outs of my book deal to help other women in getting their book deal. I have had women who have helped me as I've been building a speaking practice, women who've been tremendously supportive, because it's all brand new.
Ann Shoket:
You know, one of the things about having careers that are more complicated and more evolved than we ever planned for is that suddenly you're being thrust into totally new arenas and you have to figure out how to take the skills that you have but make them work in new places and in new ways. How do you do that unless somebody gives you the lay of the land? And so that's another piece of this sisterhood, this idea that we should all support each other so that we can rise together as women and be collaborative and powerful.
Bobbi Rebell:
I mean, just to be specific about this, how do you know when it's okay to trust somebody or do you try to ... You were comfortable doing it in an email, you don't feel you have to pick up the phone or meet someone in person.
Ann Shoket:
I think when you're talking real numbers, I think it's okay to send an email that says, "Hey, can I talk to you about this? I'm interested in finding out what you charge or how you got paid or how the deal went down," in an email, to be clear about what it is that you're asking them. But then to have the real nuts and bolts money conversation in person, I think is probably smart. That's how the last couple of conversations that I've had have gone. But I think it has to be someone you trust, who's not going to feel competitive, someone who's going to give you good, smart information. And I think that you find those people in your network, maybe they're not someone who sits next to you at work, maybe it's not your work wife, although you probably should share some of this information with your work wife. But it is people who are going to be in your life for a while, right?
Bobbi Rebell:
Right.
Ann Shoket:
You're going to see them at industry events, you're going to be up for the same jobs, you're going to see them schmoozing here and there, you're going to see them at parities-
Bobbi Rebell:
What do you do if you find out that there's a big disparity?
Ann Shoket:
I think the only thing to do ... I mean, yes, maybe it's awkward with the two of you but I think it's better to say now you know and now you can go to your boss and let them know that you know and to be clear. One of the most interesting things about this transparency that millennials have brought into the world is that Gen Xers are so supremely uncomfortable with it, we think it's TMI and that it's oversharing and that the system, sort of old systems, are set up to keep you in line and to keep you not knowing. And those don't really serve us moving forward, the transparency that millennials are demanding is going to become second nature for all of us. And so I think it's a smart company that honors this kind of transparency rather than shuts it down.
Bobbi Rebell:
Well said. All right, Ann Shoket, I know that you are so busy on the speaker circuit and with all of your projects. Tell us more about what you're up to these days and where people can find you.
Ann Shoket:
So since the TED Talk, Why We Should All Be More Millennial, I have actually been doing a ton of speaking. It is, in so many ways, a love letter to millennials, to a generation that I believe is going to lead our future and is changing the way we define power and success. But it's also incredibly important for boomers and Xers, and there's this real tension at work between boomers and Xers and the millennial employees that are coming up behind them. And it is my goal to make everybody come together so that we can rise together as women.
Bobbi Rebell:
So where can people find you?
Ann Shoket:
Annshoket.com is the best, fastest way to find The Big Life, to find my speaking, to find my TED Talk.
Bobbi Rebell:
Which is awesome, by the way. And on social media?
Ann Shoket:
Annshoket.com on Instagram, ann.shoket on Facebook, annshoket on Twitter. You can find me everywhere, I'm very easy to find. A-N-N, S-H-O-K-E-T.
Bobbi Rebell:
Awesome. Thank you so much, this has been amazing.
Ann Shoket:
Thank you Bobbi, I love it.
Bobbi Rebell:
I love how direct Ann was, I feel there were a lot of takeaways but this is what I'm going to focus on. Financial grownup tip number one, create networks and career allies to share pay and career information. But this is what I'm adding, treat it kind of like any successful relationship, in that you need to respect the boundaries and you also need to respect that even though you're being transparent with each other that doesn't mean that the information goes beyond that relationship, you need to respect the other person and their privacy. Be sure to vet someone also before you reveal too much, and keep the information that is said between the two of you, or the group, private unless it is clearly agreed that it is for public disclosure. Ann and I have shared career information and goals, but that remains private.
Bobbi Rebell:
Financial grownup tip number two. When you have these conversations, Ann points out that while you can initiate via email, you should have the real conversation in real life, in person, face to face. Meeting in person is worth the time, at the very least, do it by phone. On your end, you don't want to create a paper trail with information that you don't want to go beyond the intended recipient. No matter how well-intentioned they are, things happen, be secure with your information.
Bobbi Rebell:
Okay. The minute this podcast is over, I want everyone to go listen to Ann Shoket's TED Talk, Why We Should All Be More Millennial. I will leave a link in the show notes. Then check out her book, The Big Life, and follow her on social media. I want to hear your money story and get some great money tips from you, our listeners. We are going to be starting having one episode a month be a listener as our guest. If you want to be considered, email us at info@financialgrownup.com and tell us what money story, lesson, and money tip you would share.
Bobbi Rebell:
Thank you all for your support. If you like what you are hearing please don't forget to hit the subscribe button so you won't miss any upcoming episodes. And of course, rate and review the show, especially on iTunes. Anywhere is good, but especially iTunes so more people can learn about the show. And on that note, please share this with a friend so we can share these stories with more people and help them live richer lives. Follow me on Twitter @bobbirebell, on Instagram @bobbirebell1, learn more about the show at bobbirebell.com/financialgrownuppodcast. I adore Ann and I hope you do now too. It was a great episode and here's to us all getting 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.
