Trump and Musk Talk Business: 4 Key Learnings To Apply to Your Own Finances
Running a business and managing your personal finances are two completely different things. But if you look closely enough, you may find some similarities between the two as well as in some of the rarest places.
Check Out: What the Upper Middle Class Make in Different US Cities
Read Next: 6 Money Moves You Must Make If You Want To Be Like the Wealthy
Former U.S. President Donald Trump recently joined wealthy businessman and investor Elon Mus on Musk’s podcast to discuss a variety of topics ranging from inflation and illegal immigration to bringing energy prices down and restoring the American Dream.
While the interview was packed with lots of discussion about policies and politics, there were still a few key points that can actually be applied to the every day person who’s looking to manage and improve their finances. Here are four key takeaways from that perspective.
Earning passive income doesn't need to be difficult. You can start this week.
Living Within Your Means Can Be Difficult But Worth It
Both Trump and Musk emphasized the importance of the government being able to start “living within its means” as it pertains to inflation.
Learn More: What the Upper Middle Class Make in Different US Cities
“It’s a disaster with inflation,” Trump said as he explained on the podcast how more people could save money four or five years ago in his opinion. “Today, people are using all their money and borrowing money just to live.”
Musk echoed his statements while also discussing inflation itself by stating, “Inflation comes from government overspending because the checks never bounce when it’s written by the government. So if the government spends far more than it brings in? That increases the money supply. And if the money supply increases faster than the rate of goods and services, that’s inflation.”
According to the U.S. Treasury, the government has overspent $1.52 trillion in 2024.
While government finances are way more complex to understand and manage, these sentiments can also be applied to personal spending if you find yourself feeling overwhelmed with your own debt.
Committing to living below your means and forgoing certain purchases or finding unique ways to save might seem challenging, especially in today’s consumer-driven culture. But doing so can lead to long-term financial stability. Start by tracking your spending and distinguishing between needs and wants.
Accountability Can Help You Better Stick With a Budget
Musk proposed the idea of starting a government efficiency commission to better where money is going and determine what’s sensible. His idea was that this added accountability could potentially help direct government spending and alleviate some of the nation’s debt.
Even though our personal finances and monthly spending are not openly displayed like government spending is, adding some accountability can make a significant difference in managing finances.
Musk regularly meets with shareholders to discuss Tesla’s earnings and any progress on current goals, and mentioned how he regularly reviews Tesla’s expenses to ensure efficiency. Similarly, setting up regular financial check-ins, whether with yourself or a trusted partner, can help you stick to a budget and manage your finances better.
There’s Value in Negotiating and Price Watching
Both entrepreneurs emphasized the value of negotiating and price watching. Trump shared how he negotiated $1.6 billion off the price of two Presidential Air Force One planes that were originally offered at $5.7 billion.
He added that price negotiating efforts can be multiplied across thousands of items to cut spending and redirect the money elsewhere. Negotiating and price shopping are not outdated concepts. These practices can apply to your personal finances as well from negotiating a better deal on rent or groceries to comparison shopping for big-ticket items. Saving even small amounts can add up in the long run.
Watch Taxation of Your Income Just Like a Business
Toward the end of the interview, Trump and Musk talked about bringing businesses back to America and specific states providing incentives to those businesses. While Trump did not specify which new incentives he would offer if elected, he did mention that his administration prioritized giving tax cuts to businesses and the middle class when he was in office.
No matter who’s in office, people can work to understand how taxes impact their income under that current administration. Just as businesses meticulously plan for tax obligations, you should be aware of how taxes affect your personal finances and any possible ways to legally save on your taxes. Consider consulting a tax advisor to optimize your tax strategy and ensure compliance.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
7 Reasons You Should Consider a Financial Advisor -- Even If You're Not Wealthy
Trump Wants To Eliminate Income Taxes: How Would That Impact You If You Are Retired?
This is The Single Most Overlooked Tool for Becoming Debt-Free
This article originally appeared on GOBankingRates.com: Trump and Musk Talk Business: 4 Key Learnings To Apply to Your Own Finances