Broker Check

Have you changed your spending patterns based on who is president?

April 16, 2024

Talk of politics and the coming election find their way into many conversations I have with clients. I understand many people have concerns and uncertainties regarding the political landscape and its potential impact on your finances.

The relationship between politics and personal finances is a topic that often surfaces during election seasons. While political changes can introduce uncertainties, some will focus on things they can control, such as their spending patterns based on who the president is. Sometimes, this can impact life in a big way. A missed vacation, a canceled flight to see family, a postponed remodel or move, this type of change in spending could have a negative impact on your life. At Harford Financial Group, our mission is to create lives of meaning. When I hear of changes in spending like this that could impact that mission for a client, it hurts.

Rather than alter spending because of political concerns, I prefer to rely on a robust plan that can carry your lifestyle goals and spending regardless of who is in office, focusing on long-term financial goals rather than short-term political fluctuations. While some individuals may feel more confident about the economy under a particular party, it's essential to recognize that personal financial decisions should be rooted in your financial plan. Your plan encompasses cash flows – inflows and outflows, investing targeted at various time frames – now, soon, and later as well as your personal lifestyle goals. All of these factors contribute to spending patterns.
Political changes are inevitable, but your financial goals remain constant. Whether there's a change in administration or not, focusing on budgeting, saving, and investing wisely is critical. We help clients develop a financial plan that aligns with life goals, taking into account income, expenses, and long-term objectives.

It is important to remember that, occasionally, tax policies can change with new administrations. At Harford Financial Group, we commit to staying informed about changes to tax laws and exploring ways to optimize your tax strategy and reduce lifetime taxes. We have invested in technology to assist in this area. Tax Management is part of a holistic financial plan.

In conclusion, while political changes can create uncertainty, the foundation of sound financial planning remains steadfast. By adhering to a well-thought-out financial plan and avoiding emotional decision-making, you can navigate your finances successfully, regardless of who occupies the political stage.