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.

10 Tips to Manage Your Money

Everyone fears the word budget but don't be afraid. A budget is your lifeline to financial peace. A budget helps you know how much money you earn and spend each month. A budget is called many different names but the main goal of a budget is to help you live below your means. Nothing stays the same forever which is especially true today. Here are 10 helpful tips to help you manage your money.

1. Needs vs. Wants – buy more needs vs. wants to help reduce expenses.

2. Reduce spending – buy in bulk, on sale, at discount stores, online or use coupons, buy generic brands. Try websites such as groupon.com, coupons.com, freecycle.org, ebay.com or craigslist.com to find bargains.

3. Groceries – don’t go shopping when you are hungry, buy items on the lower shelves and ask about specials, join store clubs to get alerts on discounts.

4. Banking – open accounts with little to no fees, ask about discounts and specials, and establish a relationship with the branch manager to get alerts about specials and new products and services that could save you money. Don’t use check cashing stores or cash checks at the liquor store.

5. Driving – buy gas in the morning, combine nearby trips on the same day, keep the trunk empty, keep tires at the proper pressure level, get regular maintenance on your car, look for the cheapest gas and buy a gas efficient car, ditch the gas guzzler. Drive the speed limit to also save money on gas.

6. Medical – buy at least basic medical insurance for you and your family, get a prescription card and fill prescriptions at discounts stores such as Wal-Mart or Walgreens to save money, negotiate medical services to save money and ask about programs for uninsured or low-income patients.

7. Insurance – buy insurance for health, life, disability and your home. Buy bundled services to save money, buy homeowners and car insurance with the same company and ask about discounts.

8. AAA – triple AAA offers lots of discounts with partner companies that are not advertised, ask each company you do business with if they give discounts to AAA members.

9. Compare – Comparison shop before making a purchase to get the best deal. Use sites like bizrate.com, nextag.com and pricegrabber.com.

10. Clothing – shop at discount stores, buy clothes in off-season, check out discount racks at stores and ask if stores if they honor competitor coupons. Buy a few jackets and mix and match pieces to stretch your wardrobe.