This past Friday Donald Trump was officially made President of the United States. He will be sitting in the Oval Office and making big boy decisions. And regardless of what you believe, his actions will have some type of affect on you.
Within 24 hours the Trump administration suspended a cut in fees on the FHA-insured mortgages. The fee reduction was set to take place this month with the Obama administration as the creators. It was to help home buyers insurance rates decrease on the monthly basis that would save buyers $500 annually. I hope that the suspension is temporary and they will continue the cut after the Trump administration has reviewed the fiscal effects of the cut.
When I read the article it put in perspective and what we can come to expect with a new administration in office. I found a few ups and downs that will likely come in time. Now when these ups and downs come, will you be ready financially? Here are my top reasons why you need to save more money with President Trump.
Cuts for First Time Home Buyers
Ben Carson is serving as the secretary for the HUD program. Though Mr. Carson came from very humble beginnings he has been branded with being a hypocritical for using government programs while growing up and wanting to cut them down. Ben Carson has called these claims as false and he plans on bring education to poverty areas and making homes affordable.
However, suspending the fee cut on HUD insurance doesn’t necessarily show that his goals are to make housing more affordable. This recent move shows that he will be keeping the fiscal economy in mind, as he should but more so on saving money. This move can be the first of many that can shorten government funding on the HUD program. Best to save more money if you plan on owning a home in the next four years.
Wall Street Doesn’t Like Uncertainty
In no way or manner am I saying that Wall Street is predictable. It’s impossible to 100% predict the behaviors of stocks, bonds and mutual funds. But market analysis, have been able to predict certain behaviors and trends in the market. However, Trump is unpredictable and those on Wall Street don’t like figuring out unpredictable variables.
So why do you need to start saving? Focus on saving more to invest more. A market that becomes more unpredictable will have numerous openings, which will include stock prices decreasing. If you ever wanted to be more aggressive in investing then keep watch of the market for your opportune moment.
Expensive Consumer Goods
Trump’s administration plans on bringing jobs back to America and building a wall/fence to help control illegal immigration. Possibly, Trump will be sending millions of illegal immigrants home as well. The American Action Forum estimates the cost to be $400 billion to $600 billion and can cut the American workforce by 11 years. From there jobs will need to be filled by other means with an American workforce or machines.
Though economists imagine this will have a small change on the economy, around 1% will be affected; this change can affect your community still. Immigration is highest in certain states such as, California, Texas or Florida. Companies who rely on immigration will soon have to pay higher wages to stay in business. And trust me the costs are likely to be transferred to the customer. It’s unknown which companies will be affected the most since no one reports that they hire illegal immigrants, so time will only tell.
One of Trump’s campaign promises was to be tougher with foreign trade policies, work on renegotiating trade deals, label China a currency manipulator and bring more jobs back to America. Trump has been popular and unpopular with multiple countries and relationships can be altered as such. An important fact to realize is that countries don’t necessarily trade with each other. Only businesses trade with other businesses. The administration can affect daily life if a trade war is started.
When a trade war comes about, it can eventually lead to less options since imported goods are being taxed so heavily to the point they cost the same as a product made in America. For example: America and China become engaged in a trade war. Each country continues to raise the tariff (tax) on imported goods, which causes the good to become more expensive than goods sold in the country. It leaves fewer options for consumers and companies have less competition. Therefore, save your money because chances are the goods you buy now come from a different country.
The bottom line is to save a little bit more money each month. A new administration in the White house is going to make new changes but this situation seems to be different so far. The Trump administration has projected drastic plans that will benefit and cost the United States. Whether a good or bad move changes your daily life it’s better to have the money then not have it.
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