Now that the most shocking presidential election of my lifetime is over, I’m getting an increase in questions about money. Many people want to know how to change their money management strategy after the end of an extremely controversial campaign.
How should you change your money management approach after an election like this one? The short answer is this:
Yes, your financial situation can be impacted by the policies put in place during any given presidential administration. But, first of all, it’s important to understand that most of those policies aren’t unilaterally put into place by the president. Congress makes laws. So before you get too into who the president is, and what he says he wants to do, take a look at the make-up of Congress and try to figure out if you could be at financial risk.
Even if the president could suddenly make wholesale changes that would impact your finances, none of this changes the fact that you shouldn’t completely upend your money management strategy in response to a presidential election.
No matter who’s “in charge,” you’re better off following some of the basics of financial management:
1. Live Within Your Means
This is the most basic of all financial advice. You’ve probably heard it dozens of times in various forms, including “spend less than you earn.” This is the foundation of all successful finances, no matter who wins the White House.
Make it a point to review your spending priorities and choices. Focus on the items that really matter, and cut back on things that are putting you over budget. You might be surprised at how much you can accomplish financially when you live within your means.
2. Protect Your Assets
Next, make sure you protect your assets. This includes getting the right insurance to cover you. Make sure you have good auto, home, and health insurance. Get life insurance to protect your family too. You might also need disability or some other type of insurance.
The idea is to figure out which things could impact you if tragedy strikes. Most of us can’t just buy a new home with cash if a natural disaster comes through. Insurance can help you protect what you already have.
Don’t forget your best asset — you.
Continue to learn, and invest in yourself in a way that allows you to grow over time. When you take the time to invest in yourself, you have a better chance to overcome financial setbacks.
3. Grow Your Wealth
Finally, look for ways to grow your wealth. No matter who’s president, there are always opportunities to grow your wealth. You can start a side hustle, invest, or engage in other activities designed to help you increase your revenue streams.
Tweak as Needed
While the basic principles remain the same, chances are you will need to tweak your financial plan. Changes to the tax laws can impact your finances, and you might need to adjust to make up for it. Pay attention to some of the policies and laws that affect you, and do a little fine tuning if necessary.
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