Dasha Kennedy: 6 Money Moves That Prove There’s No One-Size-Fits-All Approach to Finance
Written by
Emily Fowler
Edited by
Jenna Klaverweiden
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When it comes to money, everyone’s playing a different game. Some people are focused on getting debt-free, while others might be all about making the next big investment.
A recent Allianz Life study found that 41% of Americans are more stressed about their finances than they were a year ago, a reminder of how uncertain people feel about their financial decisions. That stress often comes from feeling like they’re not doing things the “right” way.
Financial activist Dasha Kennedy challenged that mindset in a recent post, reminding people, “Your way can still be the right way — because it’s yours.”
Here are six money moves that, according to Kennedy, show there’s more than one way to build financial security.
Investing What You Can Afford
“Someone might invest 20% of their income, while you can only manage 5%. Both are valid choices,” Kennedy wrote.
The key is to stick to a plan that’s achievable. Investing high amounts might pay off in the long run, but doing so at a pace that doesn’t jeopardize day-to-day finances can be just as effective.
According to Fulton Bank, to determine your investment budget, you should keep it simple and evaluate your current financial health.
Balancing Debt and Savings
Some prioritize clearing debt before thinking about saving or investing. Others balance all three of those things, going at a slower pace, Kennedy explained.
What works for one person may not work for another, and Kennedy said that both approaches are valid.
Renting vs. Buying
There’s no clear winner when it comes to deciding whether to rent or buy a home, according to Kennedy. Some people benefit from the flexibility of renting, while others invest in property for long-term stability and equity.
According to Zillow, choosing to buy a home could help you build equity and provide tax benefits, whereas choosing to rent could mean less maintenance costs and upfront costs.
It all depends on personal circumstances, lifestyle preferences and financial goals.
Building an Emergency Fund
There’s no rule on how big an emergency fund should be. If 12 months’ worth of expenses put aside is the amount one person needs to feel secure, it doesn’t mean that someone with an emergency fund of three months’ worth is wrong, Kennedy explained.
Financial preparedness looks different for everyone, and that’s perfectly okay.
Using Cash or Credit
“Some use only cash to avoid debt, while others use credit cards responsibly for rewards or building credit,” Kennedy wrote.
Both strategies work, depending on a person’s financial goals. Jade Warshaw wrote on Ramsey Solutions’ website that credit cards are not necessary and it’s better to live without them. However, as Forbes explained, credit cards can offer convenience, security, bonuses and rewards.
Making Investment Decisions
Risk tolerance varies significantly from one person to the next, according to Kennedy. She explained that some may feel confident with more risk, while others would prefer less risk. A person’s comfort level should be the guiding factor in any investment decision.
Whether it’s how much to save, what to invest in, or whether to use cash or credit, the right choice is the one that works for the individual. Financial freedom doesn’t mean following someone else’s plan. It means creating a plan that fits personal needs and circumstances.
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