This election season has been quite the “poller coaster” ride. The whirlwind of information, projections, and uncertainty is a recipe for anxiety which can affect how we think about our finances. And indeed whichever side of the aisle your on, it does feel like there is a lot at stake with this election. But while heightened anxiety is completely justified, it’s critical to find ways to navigate it without letting it drive our financial behavior and decisions. Here are some ways to stay grounded, stick to our financial plan, and avoid letting temporary political events distract us from our long-term goals.
1. Focus on Your Financial “North Star”
When political news gets overwhelming, remember the long-term vision you have for your financial life. Whether your focus is saving for your children’s college, planning for retirement, or building a cushion for the unexpected, keeping your goals at the forefront can help you avoid short-term, emotional decisions.
Elections are temporary, but your financial goals are built on a much longer timeline. A sound investment strategy for example is designed to weather a range of economic cycles and market fluctuations, which means it’s built to withstand temporary political outcomes.
2. Lean Into Historical Perspective
Markets may respond sharply to election news in the short term, but they have shown consistent resilience over the long term. Historically, markets tend to stabilize as election seasons pass, regardless of which party holds office. Maintaining a long-term perspective can help you remember that no single event or election has ever made or broken a good financial plan. This is particularly true when it comes to retirements accounts for the clientele I work with. If you are in your 30s and 40s you have a long investment time horizon for retirement, which means that you have plenty of time to recover from periodic market set backs.
3. Separate Political Opinions from Financial Decisions
When emotions are high, it’s easy to let opinions influence our financial choices. But mixing the two can lead to short-sighted decisions that you may regret. For example, if you are considering buying a new home don’t let trying to read the political tea leaves affect your thought process. Instead focus on tangible factors like affordability and the impact that buying a home will have on your lifestyle.
4. Control What You Can
While we don’t have control over election results, we do have control over how we react. By automating your investments, reviewing your spending, and ensuring your budget aligns with your goals, you can feel secure in your day-to-day financial habits. Staying focused on the small, positive actions you can take brings peace of mind and keeps you on track.
5. Turn Down the Volume
With non-stop coverage, it’s easy to feel overwhelmed. Setting boundaries on news consumption can help you reduce stress and maintain clarity. Try checking the news just once a day or following only reliable sources to get the facts without the drama.
6. Seek Out Reassurance and Support
Election seasons are a great time to work with a financial planner to make sure your finances are aligned with your goals. Speaking to a trusted advisor can reassure you that your plan is designed to weather changes so that you can stay the course if necessary, as well as help you to make decisions that are informed rather than reactive.
Final Thoughts
As elections come and go, remember that while politics may shift, your financial goals don’t have to. Stick to your long-term strategy, take care of your mental well-being, and continue moving forward with confidence.
Disclaimer: All written content is for informational purposes only. None of the information provided is intended as investment, tax, accounting, or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. All information provided should be discussed with a registered advisor, accountant, or legal counsel prior to implementation. Opinions expressed herein are solely those of Sheer Empowerment Financial LLC (“SEF”), unless otherwise specifically cited. Presented material is believed to be from reliable sources and no representations are made by our firm as to another parties’ information accuracy or completeness.