Don’t Wait Until the Election Is Over to Make Financial Decisions
According to a new study by FinanceBuzz, thirty-two percent of people delay making “ big financial decisions” until the next presidential election. In addition, 72% of respondents said they believed the election would have a “direct impact on their personal finances.”
It’s easy to see why people might wait to see what happens after the next election. Some applicants plan to either cut college tuition costs or write off student debt entirely. Some candidates like some version of our current health care system, while others need the government Medicare program for everyone .
And as the elections draw closer, the remaining candidates are becoming increasingly bold about their personal platforms. Just this month, Elizabeth Warren outlined all the ways she could reduce student loan debt without having to pass legislation in Congress. Statements like these can make you wonder how quickly a newly elected president can begin to implement his political plans.
This is in addition to the problems we already face, such as the ongoing trade war (and potential, perhaps some sort of resolution) and the ongoing talk of a recession. While the frenzy surrounding a potential recession has slowed in the past few months, issues such as rising prices, layoffs and job losses, the stock market is declining and the cost of real estate drops have been issues of concern cited by survey respondents.
But, as we said earlier, you cannot predict the impact of a presidential election on the stock market, and you should not try to time the market at all . Thus, your investment decisions should not be made with the “I’ll do it after November” mentality, because in theory, you are missing out on potential profits from now until then. And any jump or fall in the market immediately after the election will be equalized within a few weeks after this event.
When it comes to other financial decisions, you can really prepare for the impending recession . But the same rules for preparing for an anticipated downturn are the same rules you should use to continually bolster your finances, not just during a downturn. You should focus on setting up your emergency budget, paying off as much debt as possible, and trying to save as much as possible now to make your life easier in the future. You can postpone buying a car or a house if, for example, you are worried about job stability, but concerns about what life will be like after November 3 should not stop you from taking positive steps towards your finances otherwise.