Personal Finance

Dave Ramsey shares some harsh truth to anyone worried about how next week's Presidential election will impact their finances

Kristin Hitchcock

Published: October 30, 2024 8:46 pm

24/7 Wall St. Key Takeaways:

• Ramsey reminds us to shift our focus from external factors, like elections, to areas within our personal control, like budgeting.
• Election outcomes can impact certain aspects of your finances, but your individual actions still account for the vast majority of financial success.
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I recently watched a Dave Ramsey interview that discussed a common concern among Americans: fear and anxiety about how the upcoming election might impact their financials.

Ramsey acknowledged that government policy affects taxes, regulations, and the job market. However, he also pointed out that much of an individual’s success is based on personal responsibility and individual actions, not political outcomes.

Here are some of the key takeaways I pulled from Ramsey’s perspective:

1. Focus on What You Can Control

No individual can control who wins the presidential election, so Ramsey suggests not getting too caught up in political worries. Instead, he recommends focusing on your financial choices and responsibilities.

Personal success largely comes down to factors within our control: budgeting, saving, investing, and reducing debt. By prioritizing these areas, individuals can build a stable financial future no matter what the political climate happens to be.

2. Recognize the Limited Impact of Politics on Personal Success

The government does affect things like tax rates, market conditions, and employment. However, Ramsey believes that these factors have a limited influence on your financial well-being. He has found that 90% of success is based on factors like education and financial planning, while only 10% comes from external political factors.

Even if political changes create short-term shifts, individuals can safeguard their financial security by focusing on the basics, such as budgeting and saving.

3. Don’t Let Fear Drive Financial Decisions

Ramsey warns against letting media and political narratives drive financial decision-making. Fear-driven choices can lead to impulsive decisions, like selling off investments or hoarding cash.

It’s important to have a disciplined approach and stick to the plan. Don’t make hasty decisions out of political fear.