Using a Simple Approach to Building Wealth with Tess Waresmith
Aug 21, 2024In a recent episode of the "Keep What You Earn" podcast, Shannon sat down with investing educator and founder of Wealth with Tess, Tess Waresmith, to discuss the importance of investing and how to approach it with a simple, yet effective strategy.
One of the key points that Tess emphasized was the need for individuals to identify as investors. Many people, especially those just starting their businesses, often feel that investing is too complicated or that they lack the necessary skills. However, Tess pointed out that investing is a skill that can be learned, just like any other aspect of running a business. She encouraged listeners to view investing as a critical component of their financial journey and to take steps to educate themselves on the topic.
Shannon echoed this sentiment, noting that financial literacy is not an innate talent but rather a result of dedication and effort. She shared her own experience of working in the industry for 15 years and the extensive education she underwent to become proficient in financial matters. Both Shannon and Tess agreed that while becoming an expert is not necessary, putting in the effort to learn the basics of investing is crucial for long-term financial success.
The conversation also touched on the common misconception that one must pay off all their debts before starting to invest. Tess clarified that while it is essential to prioritize paying off high-interest debt (generally over 7%), individuals should not wait until they are entirely debt-free to begin investing. She emphasized the power of compound interest and encouraged listeners to start investing as soon as possible, even if it's just a small amount each month. By doing so, individuals can begin to shift their mindset and understand the accessibility and feasibility of investing as a wealth-building strategy.
To illustrate this point, Tess shared a powerful example of an entrepreneur who was debating between paying off their mortgage faster or investing in the stock market. By comparing the potential savings from paying off the mortgage early ($19,000 in interest) to the potential growth of investing the same amount in the stock market over the same period ($90,000), Tess demonstrated the significant opportunity cost of focusing solely on debt repayment.
Shannon and Tess also discussed the importance of having clear financial goals and making conscious decisions about where to allocate funds. They emphasized that while seeking the highest financial return is important, it's not always the only factor to consider. Shannon shared her personal example of investing in a property in Costa Rica, prioritizing the personal return of joy, relationships, and peace of mind over purely financial gains.
Tess encouraged listeners to think long-term about their financial goals and to prioritize flexibility and security. She advised setting aside money for future uncertainties, allowing for greater control over one's business and personal life.
Throughout the episode, both Shannon and Tess stressed the importance of seeking education and advice from trusted professionals. They cautioned against falling for cookie-cutter advice or trying to simply mimic the investment strategies of others. Instead, they encouraged listeners to seek out resources tailored to their individual goals and circumstances.
In conclusion, the key takeaways from the conversation between Shannon and Tess are that investing is a learnable skill, it's never too early to start, and having clear financial goals is essential. By shifting one's mindset, prioritizing education, and making conscious decisions about where to allocate funds, individuals can unlock the power of investing and work towards building long-term wealth. As Tess mentioned, her free resource, the "Savvy Investor Starter Pack," is an excellent starting point for anyone looking to take control of their financial future.
Tess is an investing educator and founder of Wealth with Tess, a financial education community that helps millennial female founders in their 30’s and 40’s, learn how to grow their money using simple stock market investing strategies so that they can retire comfortably and live life on their terms.
After losing thousands in investing mistakes in her 20’s, Tess learned everything she could about wealth building and used simple investing strategies to build her net worth from 0 to over 1 million by 35 as a single woman. Tess’s story and business was recently featured on Business Insider.
Now she’s helped thousands of women take control of their money and learn how to invest (even if you’re short-on-time or a total newbie investor). Thousands of women have attended her free investing workshops, hundreds of women have joined her online beginner investing program, and she regularly shares simple money and investing tips on Instagram at @wealthwithtess so be sure to give her a follow there.
Free Beginner Investor Starter Pack
What you'll hear in this episode:
05:08 Millennials share financial lessons to empower others.
09:10 Start early, manage cash flow, plan ahead.
12:37 Investing $50/month can change wealth mindset.
15:41 Outpace escalator speed to reach financial goals.
17:02 Paying off mortgage vs. investing $500.
20:10 Consider return on investment for business decisions.
24:03 Save money for flexibility, reduce anxiety.
If you like this episode, check out:
What's the Best Way to Pour Money Into Your Business?
Introducing Money to Kids: Where Do You Start?
4 Steps to Start Your Investing Journey with Tess Waresmith
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
