Daily Money - Issue #258: Ready for the election?

As an example, he points to the surge in gun sales ahead of the 2016 election. Democrat Hillary Clinton was widely expected to win, giving gun enthusiasts anxiety about whether they'd still be able to access firearms. When Republican Donald Trump nabbed the presidency, that worry (and demand) almost immediately evaporated. Share prices for gun manufacturers like American Outdoor Brands and Sturm, Ruger & Co. fell sharply.

The lesson? "What seems like a logical outcome is not always the case," Sudit says.

If I'm really searching for tea leaves to read, I can look at objective economic indicators like unemployment data, inflationary pressures and shifts in interest rates and interpret them accordingly.

✅ Think about upcoming purchases.

The New York Times published a story Sunday about how "consumers tend to get skittish about major purchases like houses, cars, weddings and investments" right before elections due to the unignorable pall of uncertainty. It's not a bad idea for me to evaluate my timeline for any big-ticket buys.

Say I'm considering buying an electric vehicle, or EV. Former President Donald Trump has suggested he'd end the $7,500 EV tax credit, which can be applied like an instant rebate at the point of sale, that the Biden administration passed. That means purchasing a new EV could essentially cost me $7,500 more if Trump were to win and I happened to wait until the spring to go to the dealership.

A similar phenomenon is happening with houses. Redfin reported recently that 23% of folks who hope to buy their first home in the next year said they are waiting to take the plunge until after the election. Specifically, they're eyeing Vice President Kamala Harris' plan to provide $25,000 in down payment assistance.

Although there's no guarantee any candidate's campaign promises will come to any sort of fruition, there's *a chance* I could save money on these big purchases if I timed them carefully.

✅ Revisit the fundamentals.

Sudit says one way to combat anxiety about the election results is to make sure my own house is in order. If I can shore up my emergency fund — which should ideally include three to six months' worth of everyday expenses in an easy-to-access account that at least keeps pace with inflation — I'll feel a lot better.

That way, if everything goes wrong, I'm "immunized from [that] being catastrophic to your personal well-being," he says. It's a financial buffer of sorts.

Generally, though, I should try to remember that the election doesn't exist in a vacuum. We also just saw the start of (what's expected to be) several Fed cuts, which will likely eventually decrease the cost of borrowing. It's hard to predict what economic event will happen next, so it's best to insulate myself as much as I can.

There are a few small financial tasks I can check off my to-dol list, but I should avoid doing anything drastic with my money ahead of the election. Slow and steady wins the race here.

Zendaya's stylist, Law Roach, recently talked about the role money has played throughout their 13-year working relationship. "People would be like, 'Oh, the rates are too high,' and she'd say, 'Well, you gotta pay that rate,'" Roach said on the Naked Beauty podcast. "I think to ultimately show people that you care about them, you have to be able to change their financial situation. And that's what she's done for me."

See you next week.

P.S. I loved your replies to last issue about bank branches! Scholar Tom told me he rarely goes to his brick-and-mortar bank, but Scholar Shannon said she stops by twice a month (often to take care of tasks she can't do at home). Scholar Christine said she loves the lollipops and that her parents prefer to deposit checks via the bank drive-thru as opposed to mobile apps. All good points.

P.P.S. Are you doing anything specific to prepare for the election? Would you try Doritos ice cream? What snacks should I make this year? Send ideas to julia@money.com.