How an Election Affects Your Finances

                                                        

Some of the top issues voters are concerned about during this presidential election year are:  criminal justice laws, job creation, abortion rights, women’s rights, government subsidizes to big oil companies, outsourcing jobs to other countries, gun reform, access to healthcare, pre-existing conditions in health care, undocumented workers access to social services, taxing the wealthy, tax increases for everyone, the housing industry and the unemployment rate. 

This will be by far one of the most important elections.  Every vote counts.  Do research on all the candidates to find out their position on issues that affect you.  Election of a president can improve voters’ finances or make their situation worse.   

For example, if healthcare regulations are changed you can pay more for health insurance and healthcare costs.  If taxes increase you will bring home less money in your paycheck.  If more jobs are sent overseas, there will be fewer jobs available for Americans and a possible increase in unemployment or layoffs.  If financial aid is reduced or student loan interest rates increases, many students will not be able to afford college and those that are in college will further struggle with paying back student loan debt. 

Some signs that indicate if an economy is improving are:  reduction in foreclosures and increase in home purchases, increases in consumer spending, decreases in the unemployment rate, increase in company hiring, increases in manufacturing production, a decrease in food and energy costs, and an increase in imports.  

Here are 12 financial tips to help you manage your finances during a presidential election.

1. Don’t make any drastic changes.
2. Pay down debt.
3. Hold off on retirement or making any big purchases until after the election.
4. Don’t borrow from your retirement account or home equity.
5. Pay with cash.
6. Reduce spending up to 30%.
7. Create an emergency fund to cover your monthly expenses for 9-12 months.
8. If you are not currently saving for retirement do so.  Your portfolio should be 60% stocks and 40% bonds pre-retirement, during retirement your portfolio should be 40% stocks and 60% bonds.
9. Don’t make decisions based on emotions or get caught up in the hype by the media or your inner circle.
10. Plan for the unexpected.
11. Ensure you have adequate health, life, disability, homeowners and auto insurance.
12. Watch the mortgage industry to check to home prices, number of foreclosures and interest rates to see when is the best time to buy or sell.