With the elections just days away, Americans are struggling to prepare their finances in case their preferred candidate doesn’t come out on top.
President Donald Trump and former Vice President Joe Biden have radically different views on everything from taxes to health care, which means the winner could have a serious impact on you.
A recent study by The Ascent found that 43% of Americans revise their saving, spending, or investing strategies to prepare for the outcome. The trend goes beyond the boundaries of the parties: 44% of those who are straining their finances say they are likely to vote for Biden and 45% are likely to vote for Trump.
If you haven’t made any preparations, it’s not too late to get the ball rolling. Here are the most common ways to financially prepare for November 3rd.
Increase the savings
Topping up your family bank account is the most popular way to prepare for the election. About 26% of respondents in The Ascent’s survey put more money aside, while 22% specifically refill their emergency funds.
The economy is still stumbling and a third wave of the pandemic is hampering efforts to reopen businesses. Trump and Biden disagree on how well the country’s recovery is going, and voters may fear that one strategy or another will make matters worse.
Most financial professionals recommend having enough cash on hand to cover at least six months of your normal expenses – things like rent, utilities, gas, and groceries.
If you are thinking of increasing your savings, it pays to look for a high yielding account to keep.
High-yield savings accounts can get you more than 100 times your interest if you keep your money in a traditional savings or checking account. The higher your interest rate, the faster your savings will grow.
The second most common tactic goes hand in hand with the first. Around 25% of respondents said they would spend less in the run-up to the elections.
You can use a free app called Truebill to track and cancel all of the subscriptions you have used – including those that you forgot or that you haven’t signed up for. You will also be notified whenever any of your subscriptions go up in price.
Next, see if you can save money by getting a cheaper rate on your essential expenses like car insurance.
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You may find the exact coverage you have right now at a much cheaper price, potentially saving you up to $ 1,100 a year.
to pay off a debt
A little over 15% of Americans are looking to pay back their existing loans and debts before the elections, according to The Ascent.
High-yield debt like credit cards will weigh on your finances month after month, making it difficult to stay nimble and adapt to the new reality after November 3rd. It makes sense to pay off as much of your debt as possible while you can.
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All you have to worry about is one monthly payment. Depending on how much interest you currently pay, you could save hundreds (or thousands) of dollars and get debt free years sooner.
Revise the investment strategies
Almost 10% of Americans change their investments while keeping an eye on the presidency. 2020 was particularly volatile for investors, and the November 3rd results should be another market boost.
If you are concerned that your portfolio will take a hit, or if you are unsure how to proceed in such an unstable market, consider an automated service or robo-advisor to help you manage your investments.
Regardless of what happens on or after Election Day, you can be sure that your portfolio is moving in the right direction.
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The ability to trade with no fees is great, but another welcome feature is the ability to buy fractional stocks. You can own parts of large companies like Amazon without spending thousands.
Do a mortgage refinance
More than 6% of Americans refinance their mortgage before the elections. This is very useful when you want to free up cash for an uncertain future.
remain at historic lows Post pandemic and if you are a homeowner, refinancing tens of thousands over the course of your loan could save you tens of thousands in interest. “data-reactid =” 131 “> mortgage interest remain at historic lows Post pandemic and if you are a homeowner, refinancing tens of thousands over the course of your loan could save you tens of thousands in interest.
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It is advisable to act soon if you are planning a refinance as a new 0.5% fee for Refis will go into effect on December 1st.
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Buy or sell a home
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As with refinancing, you should compare quotes from multiple lenders before you commit to a new mortgage.
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