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Now that this election is behind us, we can begin trying to understand the impact it will have regarding financial issues. While we will get more clarity as decisions are made, as of today, here are potential impacts to our economy, investments and decisions people are facing.
How can people manage their finances based on the above issues? I recall a CEO of one of the investment companies we use, responding to a question about the impact of government policies on his company. He said something to the effect, I don’t make the rules, I simply learn how to make money according to the rules. I continue to believe this was a wise and positive statement. Similarly, how do you continue to achieve your financial goals?
First, identify and prioritize your goals based on importance, time frame and resources. Next, take action pertaining to the areas in which you have control by applying these basic principles: 1) spend less than you earn; 2) maintain an emergency fund to cover unexpected expenses or changes (e.g. job loss); and 3) minimize debt. Finally, make sure your investments are positioned correctly according to your goals, time frame and risk tolerance.