Yahoo Finance 6 Frugal Habits and Smart Money Moves You Should Consider Adopting If Trump Wins in 2024
When President Donald Trump left office in 2020, it seemed unlikely that he would be making a triumphant return, according to the Associated Press. But as of mid-February 2024, the former president seems likely to be the GOP’s choice in the November election, and oddsmakers currently see him as a strong favorite over President Joe Biden. In anticipation of a potential Trump victory, it might be prudent to make some changes to your finances. Here are some of the strategies you may want to employ.
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Shop Alternatives to Your Favorite Imports If Prices Rise
One of the hallmarks of Trump’s first term was his imposition of tariffs on various foreign goods. The same is likely to happen if the former president returns to office. While politicians and talking heads will debate passionately about whether this is a good or a bad policy, in black-and-white economic terms, it’s likely to raise prices on certain imports. If you buy a lot of imported goods, this could stretch your budget a bit.
It could potentially raise inflation in the economy as a whole as well. You might consider reviewing what tariffs Trump imposed in his first term and which ones he may be targeting if he regains the presidency to see what products may be affected.
Check Out: Trump-Era Tax Cuts Are Expiring — How Changes Will Impact Retirees
Start a Business
Small-business owners got a huge tax break when Trump took office in the form of the Tax Cuts and Jobs Act of 2017. So-called “pass-through businesses,” like sole proprietorships, S-corporations and partnerships, were allowed to deduct up to 20% of their business income from their taxes. So, if a sole proprietor earned $100,000, for example, $20,000 of that income became a deduction. That tax break is set to expire in 2025, but Trump would likely be in favor of extending it. Starting a business, even a small sole proprietorship, could earn you this tax break.
Do What You Can To Get Off Government Assistance
Most Americans who receive government assistance are already doing all they can to get off it. But they may not have a choice in the matter if a second Trump presidential term arrives.
In his first term, Trump actually pushed legislation that would have dropped 700,000 Americans from the Supplemental Nutrition Assistance Program, colloquially referred to as “food stamps.” While not much has been made of this on the campaign trail thus far, it wouldn’t be a surprise if Trump got behind this and similar types of legislation in a second term.
Raise Emergency Funds and Be Prepared for the Unexpected
If there’s one thing about a potential second Trump presidential term, it’s that we should all be ready for the unexpected. Even conservative commentators note that it can be hard to tell what Trump really wants to do and what is just rhetoric. In this type of uncertain environment, it can be a good strategy to boost your emergency funds.
If you don’t know if the economy is going to strengthen or weaken or if the stock market will rise or fall, it can be hard to plan your finances. While you shouldn’t simply hunker down and not do anything, having extra emergency funds may help you sleep better at night, knowing that whatever happens, you can react to it.
Get Green Energy Rebates Now
While no one can know with certainty what will happen under a second Trump administration, he has never been a champion of green energy. In fact, Trump isn’t shy about showing his support for American oil and gas companies.
While anything is possible, it’s a good bet to think that green energy rebates would be curtailed or even eliminated under a second Trump administration. If this is true, it means now is the right time to take advantage of any solar, EV or other green energy rebates or credits you can before they potentially get eliminated.
Consider Oil and Gas Companies as Investments
A second Trump administration could prove fruitful for the oil and gas industry. As Trump wasn’t what most people would call “an environmentally friendly” president during his first term, there’s no reason to believe that he won’t try to prop up the oil and gas industries if he returns to office. This can potentially make those industries a good choice for investors over the next four years. At the same time, Trump’s return could make things hard for green energy companies, making them less of an appealing investment.
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This article originally appeared on GOBankingRates.com: 6 Frugal Habits and Smart Money Moves You Should Consider Adopting If Trump Wins in 2024
