From Financial Fear to Financial Freedom: A Conversation with Tess Ware Smith
Hello everyone, I’m Farrah Haidar, your host, and today I’m thrilled to introduce you to Tess Waresmith, a financial coach and the founder of Wealth with Tess. Tess has a unique story to share about her journey from losing $80,000 in bad investments to becoming a millionaire by the age of 35.
The Journey to Financial Freedom
Tess’s journey to financial freedom wasn’t always smooth sailing. She faced her fair share of financial struggles, which were rooted in her childhood experiences with money. After graduating into a recession and struggling to find a job, she found herself working as an acrobat on cruise ships. This job allowed her to save a significant amount of money, but she felt incapable of managing it herself.
She hired a financial advisor who sold her an annuity that was not suitable for her age and financial goals. Tess describes an annuity as a way to create income in retirement by investing money now and receiving monthly payments later. However, she emphasizes that annuities are complex and not a good fit for everyone.
Overcoming Financial Fear
Despite her financial stability, Tess admits that her fear of not having enough money still persists. She emphasizes that this fear is a work in progress and that she continues to learn and grow in her own financial journey. She also highlights the importance of paying attention to one’s emotions when making financial transactions, as it can provide valuable insights for improving financial behavior and building wealth.
Working with Financial Advisors
Tess acknowledges that while there are great financial advisors out there, it is crucial for individuals to have a basic understanding of finance and investment principles to effectively vet and communicate with their advisors. She shares that breaking up with a financial advisor can be awkward but having a plan and support from a financial coach or resources can make the process easier.
Women and Finances
When asked about whether women need a different approach to finances than men, Tess explains that the tactical strategies are the same, but the conversation and messaging need to be tailored to address the unique challenges women face. She highlights the gender wealth gap and the need for women to invest.
Debunking Financial Myths
Tess discusses the importance of financial stability and debunking common myths and mindsets around investing. She advises listeners to assess their financial situation by considering their debt and emergency fund. Tess explains that having an emergency fund of 3 to 6 months’ worth of expenses is crucial, especially for business owners who may need a larger buffer.
Starting to Invest
Tess reassures listeners that they don’t need a significant amount of money to start investing. Even with just a dollar, they can purchase fractional shares of stocks or funds. She encourages starting with whatever amount is feasible, even if it’s just $100 a month, and emphasizes the importance of automated systems and investing in simple funds that hold a diversified portfolio of stocks.
Women and Financial Independence
Tess challenges the belief that women are discouraged from pursuing financial independence. She acknowledges that there is still a societal expectation for women to prioritize marriage and caretaking over financial success. However, she emphasizes that having money can be a positive thing, especially when women use it to make a difference through donations and impact important causes.
The Importance of Supportive Friends
Tess and I discuss the importance of having supportive friends and the offer Tess has for women who want to grow their money and retire comfortably. Tess offers a free resource called the Savvy Investor Starter Pack for women who want to grow their money and retire comfortably.
Conclusion
In conclusion, Tess and I encourage listeners to chase their happiness and take control of their financial future. They believe that with the right support and resources, women can overcome their financial fears and achieve their financial goals.
I invite you to reach out to me on Instagram or Facebook to share your biggest money fears. I’m genuinely interested in hearing from you and want to create a space for open discussion. Also, I’m giving away a PDF of some of the best quotes from the show. These quotes are beautifully designed and can be printed and used for journaling. Email me with the subject line “Quotes” to receive this PDF.
Remember, your financial future is in your hands. Let’s take control of it together.
