Watching the presidential elections always makes me think about my money. While there are a ton of important issues, I always relate it back to how is this going to impact me? And many of their positions and policies are focused around money or could impact my money in ways that I cannot control.

How the Presidential Election Could Impact Your Money

Regardless of which side you relate to most, regardless of who becomes President, their policies could impact your future. The presidential election could impact your money.

Taxes

Their economic policies could cost you money. If you are working towards earning more, you could move up a tax bracket, causing you to pay more in taxes. One way to circumvent this is to put your money in as many retirement vehicles as possible that will tax you in a lower income bracket today versus when you get closer to retirement.

Recommendation: Max out your 401k, max out a Roth IRA

Increase in interest rates

With interest rates so low, there is nowhere for them to go but up. What does that mean if you are looking to buy a home, car, or even student loans? Basically, with the historical all-time low rates, there could be a chance that the Federal Reserve will raise them in December. For a big purchase, every time that interest rate increases, you can feel the sting.

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Foreign Policy

While their decisions will impact foreign policy, and the outlook on foreign affairs, it could trickle down to the travel that you make.

Take for example, the Brexit vote a few months ago, not only did it affect foreign policy, but the pound is worth much less compared to the USD. In this example, if you are from the US and have any interest in traveling to England specifically, within the next year or so you might start to plan your trip. With the pound being down, our USD can go much further over there. Translation: it will be cheaper to travel and stay in England.

Oil Prices

Not to get too deep into the interconnectedness of the oil industry, but as of today, oil prices are relatively low compared to a few years ago. But that does not mean that they won’t fluctuate when a new President comes into term.

While your econ class might seem a distant memory, supply and demand does affect price, so you could see gas prices go up in the future. While prices at the pump might not seem like they change that much, a major jump like a $1/gallon could mean an extra $40 every time you fill up. And within a month, that can be close to $100 depending on your driving.

Recommendation: Evaluate your budget and if gas prices go up, can you budget support an equivalent to an extra tank of gas each month. If it can’t, look into cutting one thing out of your budget or look into how you can increase what you are making.

When it comes time to vote in November, make sure you look at how the policies could impact you and your wallet not just today but in the future.

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  • Emily @ johnjanedoe

    Our big concern is healthcare, because we’re on an ACA marketplace policy. We’ll do our enrollment next month, but we may also be checking out some other options since so many companies have dropped out.Needless to say, we are watching both the presidential and congressional elections carefully.

    • Healthcare is definitely one to watch out for. You make a good point that in addition to the presidential election, there are elections at the local levels as well that should be just as important to someone who is concern about their money. Local levels can impact property taxes, for example.

  • femmefrugality

    I’m not totally convinced the president has power over each of these items. Foreign policy is big, but tax changes will have to make it through the legislative branch and the Fed, who is independent of government, makes decisions about interest rates. I really think local elections affect more of our day-to-day expenditures.

    • The local and state level is also something to be very considerate of. Property taxes can be affected for example. I think just being aware is the first step for most people.

  • Earlier this year I wrote a post about a similar subject. The next election will certainly have an impact on the subjects you mentioned here. One of the key areas I looked at is Social Security and its potential problem in staying solvent. As a senior citizen myself, and looking towards the future, the next president will have to take a hard look and work with congress to do something about this impending disaster. The best action point that you can do yourself is to make sure you fund your retirement plans and don’t rely heavily on Social Security benefits. It was never intended to be your sole support and too many rely on that.

  • smcmillian89

    My main concern is if we have a war. If we are at war, items might cost us more money (because of scarcity). http://www.millennialsavingmoney.com