News & Trending Money News

2 Things Americans Should Copy From Kamala Harris' Personal Finances, and 2 to Avoid

These are the money moves you should copy from the 2024 presidential candidate and which you should avoid.

By Cassandra Yorgey

Edited by Laura Ratliff

Updated Aug. 16, 2024

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

Vice President Kamala Harris is the Democratic nominee stepping up to run for president in the 2024 election, which leaves many wondering how her economic policies will compare to those of her predecessor.

Examining her finances may shed some light on what a Harris presidency would look like, but it can also help your personal finances to see if copying those money moves could increase your own wealth. Remember: You don't have to be a millionaire to make money moves like one!

Steal this billionaire wealth-building technique

The ultra-rich have also been investing in art from big names like Picasso and Bansky for centuries. And it's for a good reason: Contemporary art prices have outpaced the S&P 500 by 136% over the last 27 years.

A new company called Masterworks is now allowing everyday investors to get in on this type of previously-exclusive investment. You can buy a small slice of $1-$30 million paintings from iconic artists, all without needing any art expertise.

If you have at least $10k to invest and are ready to explore diversifying beyond stocks and bonds,see what Masterworks has on offer. (Hurry, they often sell out!)

DO: Passively manage index funds

Kamala Harris' financial portfolio shows that she prefers passively managed index funds, which often have lower fees and reduced risk of bias.

These offer strong diversification, low turnover, and consistently over-perform compared to actively managed funds. This is a money move you'll want to copy for your own portfolio.

Want to learn how to build wealth like the 1%? Sign up for Worthy to get ideas and advice delivered to your inbox.

DO: Use high interest earning accounts

CNBC reports that Kamala Harris keeps a large cash pool of $850,000 or more set aside in interest-earning accounts.

Having cash on hand for emergencies is certainly a good idea, but this amount isn't feasible for most, and scaling down may not provide interest-earning options.

Take a look at the best savings accounts to see what will work with your own personal finances.

DON'T: Get an adjustable rate mortgage

Will a 0% or Negative Interest Rate Change Your Chance of Getting a Mortgage?

Those who remember the financial crisis of 2008 may cringe at this liability in a mortgage. Adjustable-rate mortgages often offer a low interest rate upfront that then skyrockets several years into the loan.

This is a potentially volatile option if you can't refinance before the rate increase, although that is unlikely to be a problem for Harris. It is likely to be a problem for those with fewer resources, so this is a move most should avoid for their personal finances.

Get a free stock valued between $5 to $200

Secret: You don't need thousands of dollars to buy thousand-dollar stocks or create a diverse portfolio.

Robinhood offers a method of investing called “fractional shares.” On its own, one share of a single stock could cost a lot of money, making it difficult to diversify. Robinhood allows you to buy pieces of stock instead, so you have the option to build a diverse portfolio quickly.

Let’s say you want to invest $250, as an example.

With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.¹

Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.25% (as of 11/15/24) APY²on your uninvested cash³and the ability to buy and sell stocks 24 hours a day, 5 days a week.

Open and fund a Robinhood account and earn up to $200 in stock

DON'T: Own multiple properties — if you don't have the capital

coins stack house sculpture mortgage concept

Harris maintains properties in California and Washington, D.C., which is a perfectly sensible move if one can afford it and has a job that requires being in both those locations. However, most people would be better off purchasing just one property in which to live.

Many dual homeowners rent out their second property to earn additional income. However, this is risky if covering the mortgage payments depends on that rental income. Many investment properties dependent on things like Airbnb bookings do not earn enough to cover the loan used for purchase, leading to foreclosure.

Bottom line

As Vice President, Kamala Harris has a wildly different financial situation than most Americans. However, she still makes some money moves that can be copied to improve your financial health.

While she may have access to more money from things like book deals, she invests it moderately and depends on slow, steady results without much risk. The risks she does take are comparatively low for her circumstances, meaning they are less risky for her than for the average person.

If you're struggling to improve your financial health and eyeballing these moves as you would a winged unicorn soaring in on a rainbow, there are solid ways to earn extra cash with side hustles from home that can give you more wiggle room to start growing your own wealth.

More from FinanceBuzz: