Fred Barstein, CEO & Founder, TPSU/TRAU/401kTV with Adjunct Lecturer, Liz Davison, CEO & Founder – Financial Finesse
In today’s fast-paced world, achieving financial wellness has become essential for overall well-being. However, not everyone experiences the peace of mind and security that come with financial wellness. Many individuals find themselves trapped in a cycle of financial stress and uncertainty, bordering on what can be described as financial illness.
Financial wellness represents a state of equilibrium where individuals have a firm grasp of their financial situation and possess the knowledge and tools to make sound financial decisions. It encompasses various aspects, including budgeting, saving, investing, managing debt, and protecting against financial risks. In a financially well state, individuals experience manageable levels of stress related to their finances and have a clear path toward achieving their financial goals. This balance fosters a sense of security and confidence in one’s financial future.
On the flip side, financial illness is characterized by overwhelming financial stress and instability. Individuals grappling with financial illness often find themselves drowning in debt, living paycheck to paycheck, and unable to plan for the future. The burden of financial hardship weighs heavily on their mental and emotional well-being, leading to anxiety, depression, and strained relationships. Without a solid financial foundation, they are vulnerable to unexpected expenses and financial setbacks, perpetuating a distressing cycle.
In a recent discussion at conclusion of University of a TPSU program held in Maryland, Fred Barstein, CEO and founder of TRAU, TPSU, and 401 KTV, engaged in a conversation with Liz Davison, CEO and founder of Financial Finesse, to delve into the intricacies of financial wellness. Together, they defined financial wellness as encompassing manageable financial stress, debt management, savings, investment strategy, and adequate protection. Despite its importance, they noted that only around 5% of the population meets all these criteria. Davison emphasized the significance of breaking the taboo around financial struggles, advocating peer-sharing platforms for motivation. Financial Finesse, as the largest independent provider of workplace financial coaching, offers services paid for by employers, aiding employees in managing money effectively and saving for retirement.
The journey from financial illness to wellness is challenging but achievable with dedication and guidance. It begins with acknowledging the current financial situation and understanding the factors contributing to financial stress. Seeking assistance from financial professionals or counselors can provide valuable insights and strategies for managing debt, creating a budget, and building savings.
Employers and financial institutions play a vital role in promoting financial wellness among their employees and customers. By offering financial education programs, access to resources, and support services, they can empower individuals to take control of their finances and work toward a brighter financial future.
For more information, visit www.financialfinesse.com.
Read the Full Transcript Here:
Fred Barstein:
Greetings. This is Fred Barstein CEO and founder of TRAU, TPSU and 401kTV. I am here with Liz Davison, who is the CEO and founder of Financial Finesse, and really one of the foremost experts in the financial wellness area. She’s been doing it for a long time and actually effective in helping people. So welcome Liz.
Liz Davison:
Thank you.
Fred Barstein:
Okay. If we ask you a few questions?
Liz Davison:
Absolutely.
Fred Barstein:
Okay. So first, let’s define financial wellness. If you ask 10 people what it is, you get 10 different answers. We all know what financial illness looks like.
Liz Davison:
Yes.
Fred Barstein:
Right?
Liz Davison:
Yes.
Fred Barstein:
So how would you define financial wellness?
Liz Davison:
That’s a great question, and I will say those 10 different people are converging on a more common answer. So that’s good. Both from what retirement plan participants and employees think of it as well as employers. But our official definition is you are financially well, if you have manageable financial stress. It’s reasonable to have some degree of stress, and that can even motivate us. But it’s manageable, it’s not keeping up at night, it’s not toxic. You have no high interest rate debt, an emergency savings fund that is fully funded, and you’re living well within your means so that you can save and invest for goals. You have those planned out. You know what your goals are, you have a savings and investment strategy for each goal. And then the last piece of it is you are fully protected so that any wealth you have built is insured appropriately, you have appropriate estate planning, healthcare planning, etc. If you meet all those criteria, you are financially well, you want to guess what percentage of the population meets all those criteria?
Fred Barstein:
5%.
Liz Davison:
Yes. I may have told you that before-
Fred Barstein:
Nope.
Liz Davison:
But yes, you’re absolutely-
Fred Barstein:
It was a guess.
Liz Davison:
… absolutely on point. That’s a lot of different things to have in place.
Fred Barstein:
I like that it’s so concrete. So when you’re helping people, what do you find that’s working? What’s most effective?
Liz Davison:
One of the most exciting things we’re seeing is we’re breaking through the taboo. This is, I think, the last taboo we broke through post-COVID, the taboo about mental health and being able to share some of your struggles. Now, we have people that are openly, we have a podcast actually, and they’re openly sharing their stories, their struggles, and what they learned going through the coaching process. That is one of the best ways for employers and record keepers, benefits brokers to motivate their remaining participants, is if you see something in someone else and you see them prevail, it’s incredibly motivating to get more people, recognizing that the service is available and it really has tremendous value.
Fred Barstein:
So hearing from their peers.
Liz Davison:
From hearing from their peers.
Fred Barstein:
So tell us briefly, what does financial finance do and how do you help employers and their participant workers?
Liz Davison:
So we are the largest independent provider of workplace financial coaching. It is paid for in all cases by the employer or by our clients that may be record keepers rolling it out to all participants, asset managers, et cetera. So the employees pay nothing, and we have no financial products or services to sell. So it’s a wonderful model for employers that have a lot of financial stress in the workplace. If you’re financially stressed, you’re not going to pay $150, $250, whatever amount of money to get access to world-class financial guidance. You may not even think it applies to you. This is a model where we’re not giving advice and we’re not selling asset management services, we’re helping people change their habits and behaviors so that they can manage their money more successfully and ultimately save more for retirement.
Fred Barstein:
Sounds great. So how would people find you? What’s your website address?
Liz Davison:
www.financialfinesse.com
Fred Barstein:
Easy enough.
Liz Davison:
Yep.
Fred Barstein:
Thank you. We’ve been talking to Liz, Davison, CEO and Founder, and really one of the foremost experts, if not the foremost.
Liz Davison:
I’ll take it.
Fred Barstein:
You do long enough-
Liz Davison:
Ill take it.
Fred Barstein:
… you become an expert
Liz Davison:
Yeah, quarter of a century.
Fred Barstein:
There you go. Thank you and thank you for watching 401 KTV. Please stay tuned.
