President Donald Trump has taken office for his second term, and many people are wondering how their finances will be affected. We spoke with financial expert Anthony DeLuca to get his insights on savings strategies during this time. DeLuca emphasized the importance of having a robust savings plan, regardless of who is in office.
“A general rule of thumb is to allocate 20% of all earned income towards savings while maintaining a ‘rainy day fund’ that covers three to six months of monthly expenses,” he explained. However, DeLuca personally recommends keeping at least six months’ worth of expenses in savings. “We humans tend to underestimate emergencies,” he noted.
With Trump’s planned tariffs on imports from Mexico, Canada, and China, DeLuca advised keeping some extra cash on hand to cover potential price increases on everyday items.
DeLuca’s strategic savings advice
While these tariffs could boost domestic jobs, they may also drive up costs for consumers.
Having additional funds in a savings account would provide the necessary liquidity to handle these higher expenses. Trump has also stated his intention to deregulate businesses and financial institutions. Some believe this could improve the economy by allowing for more growth.
However, DeLuca cautioned that these deregulations could lead to higher credit card fees due to reduced oversight. This is another reason to ensure your emergency fund is well-stocked. By following these savings strategies and staying informed about economic changes, Americans can be better prepared to weather any financial challenges that may arise during Trump’s second term in office.
Keeping a close eye on your budget and adjusting your savings as needed will be key to maintaining financial stability in the coming years.
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