4 Money Lessons That Hurt To Learn but Can Give You Financial Freedom, According to Dasha Kennedy

Yahoo

2 days ago

Dasha Kennedy is a powerful voice in the personal finance space, especially for those who struggle with money and are ready to break free from survival mode.
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As the author of 'Moving Beyond Broke: The Power of Perseverance in Personal Finance,' Kennedy shares hard-earned wisdom that can hurt to learn but will ultimately lead to true financial freedom.
Many people believe that if they just track every dollar and stick to a budget, their money problems will vanish. But if fear, shame or trauma lurk behind your money habits, spreadsheets alone won't bring peace.
'If your relationship with money is rooted in fear, no amount of Excel formulas will make you feel secure,' Kennedy explained. 'You have to untangle the fear before you can manage the finances.'
She also notes 'more income won't fix a spending habit that's really about survival, loneliness, or unhealed lack.' Healing your money mindset may involve confronting past experiences, seeking counseling or practicing self-compassion.
With a healthy money mindset, you can break bad habits at the source and feel empowered by your budget instead of feeling punished.
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Kennedy encourages saving for more than just crises.
'Start saving for peace, pleasure and possibilities, too. You deserve to build a life you don't need to escape from,' the expert noted.
While you always hear advice to build an emergency fund, don't forget to build a financial life that lets you thrive rather than just survive.
On that note, Kennedy also reminds us, 'You don't need to earn joy or a day off. Rest, softness and small luxuries belong in your budget. Deprivation isn't discipline if it leaves you feeling resentful.'
Financial experts like Ramit Sethi also advocate for conscious spending instead of deprivation. This means allocating money towards what truly brings you happiness while cutting back mercilessly on things that don't. Saving for experiences, hobbies or personal development can transform your relationship with money from scarcity to abundance.
Kennedy emphasizes the power of awareness. Many people avoid looking closely at their bank statements or credit card bills because it can reveal uncomfortable patterns.
'Tracking your spending will show you the truth — and sometimes that truth is painful,' she said. 'When you finally look at the full picture, you give yourself the power to shift it.'
This is a crucial step toward financial freedom. By honestly reviewing where your money goes, you can make intentional changes instead of being blindsided by overdrafts or debt.
Avoiding your bank account and credit card statements doesn't make the fees or debt disappear. The first step towards financial freedom is to know what you owe and face your financial reality head-on.
Kennedy's last lesson is about financial self-reliance, encouraging you to 'provide financial safety for yourself… even when love and partnership are present.' Whether you're single or married, you should have a financial safety net and the skills to provide for yourself.
Financial experts like Suze Orman agree. Orman champions the 'yours, mine, ours' approach, in which married partners each have their own bank accounts, credit cards and savings while also sharing joint accounts and financial discussions. This way you are financially savvy and self-reliant no matter what the future holds.
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This article originally appeared on GOBankingRates.com: 4 Money Lessons That Hurt To Learn but Can Give You Financial Freedom, According to Dasha Kennedy