CNBC is my preferred news source, especially with it being an election year. I loathe politics, but I have to pay attention to it as a financial planner. I’m not really a fan of Donald Trump or Kamala Harris, but I would love to interview both candidates and open their eyes.
CNBC’s political coverage called “Your Money Your Vote” is great! They tell the audience what we really want to know…how the candidates’ policies will impact our wallet. Sure, we can give other reasons why we like this person or that one, but our final decision comes from how we believe our personal financial lives may be changed.
I think it’s important to realize we think this way. Both campaigns know it and they manipulate their messages to us around our financial concerns. Beware of having complete belief in the promises these people make about your financial well-being.
Regardless of who wins, you will have a more difficult time reaching your future goals without a financial plan.
The President of the United States is not your financial advisor. Would you really want them to be? Currently, they are in the process of spending hundreds of millions of dollars of donors’ money in an effort to get a job paying $400,000 per year. No matter what type of accounting you use, those numbers don’t compute! I say that jokingly, of course, maybe.
We should remember the federal government’s finances are different from our households. Whether or not you agree with Modern Monetary Theory, I think this tenet is important for our personal financial situation. You can learn more about Modern Monetary Theory at this past blog post.
The basic difference between our finances and the government’s is how debt is managed.
When we run out of money, we have to earn more or take on debt. The debt is given to us with the anticipation that the lender will be repaid and rewarded with interest. More money is not created, it is just transferred from one person to the other.
When the government borrows, it can actually create more money with a few keystrokes. Frustrating? Yes! However, it is also absolutely true.
We cannot legally print money, so our debt ratio matters. A bank will not give us money unless they are sure we can pay it back. The government, as the money maker, does not face these restrictions.
Yes, there are limits to how far spending can go, but the idea that the country will end if the IRS doesn’t collect enough to cover the debt is misguided.
In an effort to ease your fears on the national debt, let’s look at some numbers.
At my last check on 9/26/2024, the debt was $35 trillion. According to the US Treasury, the government has taken in $4.39 trillion in fiscal year 2024.
Also, over the next few decades, we will experience something called the great wealth transfer. This is where other generations inherit the wealth saved mostly by the Baby Boomers.
This amount is estimated to be around $84 trillion. If we assume a 20% tax on that, the government will gain another $16.8 trillion in revenue. We just got the debt down to $13.81 trillion in a matter of minutes.
Sure, we need to watch our spending, but the world won’t end because of our national debt. If only politicians would stop trying to scare people. Personally, I think politicians use our national debt as a fear tactic, so they can look like heroes.
I look at the President like a CEO who is supposed to lead and work with their employees for the benefit of their customers and shareholders. We, the US citizens, are those shareholders.
I want a CEO who does the job without trying to be a hero. Jesus is my Lord, Savior, and Protector, so I don’t need another one of those.
Now that we have helped the government’s financial issues, let’s look at ours.
When we talk about investing, I am a firm believer our greatest asset is time. Regardless of which party holds the office of president, I believe our country will endure, but time will disappear.
While we are waiting for the right person to be in office or the right opportunity to invest, we are losing time. If your career lasts for 30 years, your money can be impacted by 7 different presidential administrations. We can safely assume that each election will be the “most important one our country has ever faced.”
I would love for all of us to have enough wealth where we could live without struggles.
Unfortunately, that perfect world won’t happen until Jesus returns. It certainly won’t be because of a presidential candidate. Yes, the government can help the middle class with tax breaks and investing in local infrastructure, but the real growth will come from the people.
We will have to make some tough choices. It may be nice having a television in every room, but is it necessary? Buying one television and investing the other $1,000 may be a better option.
It is not my intention to tell you how to spend your money. However, we should consider all of the options available to us. Granted, the extra television may make your child happy for an hour, but that investment could be the step toward a better life for your family.
My parents are amazing. My sisters and I had our needs met and we were spoiled. Looking back, I am grateful for the times my parents told me no. I learned so much from those rejections even though they angered me at the time.
Now, as their advisor, I can see firsthand how their discipline then has rewarded them now. I want everyone to experience a similar future, but you must start now. Our parents faced trying times just like we do today. We need to have their same discipline and courage to prepare for our future.
Every investment doesn’t have to be a big splash, small ripples move water too!
You should be investing every year during your career. Some years you may only be able to invest a little while putting away more during other years.
I like to say that small bricks build large houses. According to Google, it takes 15,000 to 25,000 bricks to build a 3-bedroom house. If each brick represented $10 in savings, you would have $150,000 to $250,000.
That’s a nice chunk of change built by small contributions. In our instant gratification society, we can forget building takes time. Your dream home isn’t built overnight, so we shouldn’t expect any different when building our financial resources.
Economically, there are signs that things are slowing down, but this happens in the business cycle.
CEOs in the retail sector have said that customers are starting to be more selective in their purchases. While the media will present this as doom and gloom, I think it’s a good thing. 
We are a consumer driven economy, which means we have the power. If we want grocery prices to drop, we slow our buying. Understanding the power of the Law of Supply and Demand is more valuable than the promises of politicians.
It’s easy to blame our leaders for our struggles. I agree they could do better jobs, but wouldn’t it be great to build a better life for ourselves? Yes, do your duty and vote, but don’t wait for the politicians’ help. Invest in yourself and the chance at a better future.
Yes, we face real struggles, but I challenge you to focus on your blessings. For most of us, when we really think about it, our blessings outnumber our problems. Email me!
