Stocks soared in the days after President-elect Donald Trump won the 2024 election, and the Federal Reserve announced another interest rate cut less than two days later.
The Dow Jones Industrial Average, S&P 500 and Nasdaq markets reached record highs and their best week in a year.
Yet, Wall Street’s reaction to the election outcome does not reflect how many Americans feel about the state of their personal finances, some financial experts say. “Vibecession,” or the disconnect between the markets, the economy and people’s feelings about their financial standing, continues.
Feelings, however, should not overshadow anyone’s focus when assessing the potential impact of a second Trump presidency when it comes to finances, advisors say.
“While a new presidency may bring changes to the economic environment, it’s crucial to focus on financial strategies within our control,” said certified financial planner Rianka Dorsainvil, founder and senior wealth advisor at YGC Wealth and a member of the CNBC Financial Advisor Council. “Stick to your long-term financial plan, adjusting only when your personal circumstances or goals change.”
Consumers and investors have little or no control over government policies on tariffs, taxes, interest rates or the state of the economy. However, improving your personal economy is possible by taking better control of your money, experts say.
Here are five ways to improve your finances:
1. Build an Emergency Fund
Build up your emergency funds in a high-yield savings account. “Aim for three to six months of living expenses,” Dorsainvil said. “This financial buffer provides peace of mind and stability, regardless of broader economic conditions. It ensures you’re prepared for unexpected expenses or income disruptions.”
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