Sandy Wagner

I’m hardly going out on a limb by saying there’s a lot on people’s minds right now. With all the news coming at us, it might be easy to let your reactions paint your perception of … well, everything, including your finances. In fact, over the last few weeks, we have received questions from our members asking what they should do now that a new administration is in office.

My best advice, whether you’re apprehensive, enthusiastic, or unsure about the policies that are to come: If you were comfortable with your financial plan in 2024, stay the course in 2025.

We try to stress to our members the importance of removing emotion from a well-thought-out financial plan. Keeping your long-term goals in focus will help you navigate any short-term unpredictability.

Of course, that might be easier said than done in an environment where political al news is seemingly evolving quicker than ever. Yet, such significant shifts should only reinforce your commitment to your long-term strategy. The more you commit to a sound financial plan, the better prepared you will be for whatever may come, good or bad.

The truth is that the path to financial wellness is rooted in fundamentals that are both nonpartisan and generally unaffected by the national politics of the moment. Those steps are:

• Track your income and spending. Knowing how much money is coming in and going out is the first step toward creating a budget.
• Create a budget that prioritizes savings. Prioritize your savings by “paying yourself first.” Setting aside money with each paycheck before any discretionary spending is a ticket to long-term financial strength.
• If you have debt, pay it down as quickly as possible. Nothing eats away at your financial health like too much debt.
• Practice mindful spending habits by taking care of your necessities first.
• Build and maintain good credit by paying your bills on time.
• Invest adequately in your retirement. At the very least, if you have an employer-sponsored plan, take advantage of any matching contributions.
• Once you’re on solid financial footing, it’s OK to indulge on, say, a nice vacation. Just know how and when to do it so that your long-term goals remain in focus and within reach.
• Continually review and update your plan based on the factors in your own life, not the news of the moment.

What happens today is not a great predictor of what will happen tomorrow. Both the economy and politics change, and to achieve long-term financial wellness, it usually makes sense to remove short-term national news from your decision-making.

It all boils down to this: A logical, long-term financial plan is always a wise choice, no matter what the news brings.