By Bill Davis

November 7, 2018

2018 mid-term election results effect on your finances
Make a plan, stick to it, adjust where appropriate

Leaves a bit to the imagination, doesn't it?

I'm not talking about our little affair. No. I'm talking about last night's election results.

The question is, how does yesterday's election results affect you and your finances.

Good question!

In short, I don't know.

How's that for an answer?

Seriously, nobody knows. I don't want this post to “get political” (even though it's about politics).

Your finances are very indirectly tied to your elected officials, at the local level, county and municipal level, state level, and federal level.

President Trump did talk about a “middle class tax cut” after the November elections yesterday.

It was unclear what he meant by that, since Congress is on recess (or whatever they call “vacation” these days).

However, it is conceivable that some folks have been working out a 10 percent tax cut that primarily affects individuals (as opposed to companies).

And now that the dust is beginning to settle and Congress comes back to work (when I don't know), there very well could be a tax cut on the horizon.

Short-term, tax cuts are always good for you: You get to keep more of the money you earned.

Long-term, the jury is always out. It may benefit the economy on a macro level. It could very well hurt some folks who depend on the tax revenue for crucial services to them (like welfare, food stamps, social security, Medicare, etc.).

The best course of action you can take is this: Have a plan, stick to it, and any “windfalls” you get in terms of a smaller tax bill you stash away in your emergency savings fund or you invest it.

Simple as that.

What you don't want to do: Spend it. Many folks hear about a tax cut and go out and buy a luxury item before they even see the savings.

They put it on a credit card, drive up their debt, and then when they get the tax break, they go out and spend it again.

I know. I've done this myself.

Don't do that. Be smarter than your (and my) old self.

You're on a path to financial freedom. And while you may never be one to be independently wealthy (you could if you start soon enough), or be able to “quit your job,” you may rest easier knowing that all your obligations are accounted for, you've got enough funds in your emergency fund to withstand any storms, and you've invested–and continue to invest–in your future earnings when you may want to slow down a bit (otherwise known as “retirement”).

I, for one, know that I will never willingly retire. I will always “work.” What I want to be able to do is work without HAVING to work.

I love working, being productive, helping myself, my family, and my readers lead better, higher quality lives.

I don't ever want to stop doing that. But being able to slow down a bit when I'm older is a luxury I–and you–can certainly plan for and look forward to.

So, in short, I don't know what last night's election will do for your finances. But I do know that if you've made a good plan and stick to it, it won't really matter.

I use and highly recommend Monarch Money for your budgeting needs. You can read a review about it here.

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