Politics will always be a relevant issue. Millennials are no exception to this rule. While they came of age at a time when markets were crashing, the right mix of laws may jump-start this economy back to the good ol’ days of the 80s and 90s. Though your general worldview will influence what side you root for, I believe most ultimately vote for what is best for their pocket.
That being said, it’s important to stay current with your country and state laws, as they can directly affect your particular situation. People and families have escaped oppressive and brutal regimes because of their anticipation of what is to come. Applying this frame of mind to your life will go a long way, especially for millennial money. Whether politics is your interest or not, here is a list of reasons why you SHOULD pay attention if you’re looking to line your pockets in consideration for the future.
Education
The issue of education directly affects Millennial money. Staying informed as to who is getting elected to local positions in education can give you a sense of where it is going. This type of knowledge can aid in figuring out where to settle with you and your family. Is your town pro-Common Core? Do they have a financial literacy initiative? Summer programs and the curriculums offered are all things that are influenced by politics. Find out what the agenda is for your local office and understand their intended path for your child’s future.
Health
Healthcare has been in the news for the last few years, I’m sure you have noticed! Are you for government-run healthcare or do you believe in more of a free-market solution for the many who are left uninsured within our great country? There is no concrete answer to this question, only you know what you believe is best for you and your loved ones. In my experience servicing tax clients, I have some families that have chosen not to buy health insurance (for whatever reason) and have incurred a penalty in recent years. The passage of Obamacare has directly affected their bank account due to this penalty. Politics matters!
Taxes
Taxes are always a hot topic in any election, small or big. Can you think of a political issue more directly linked to your bank account? Do you believe in tax cuts for the wealthy and businesses or do you believe is redistributing wealth? Do you believe doing so will fuel economic growth or add to the growing national debt? It seems the USA is divided on this issue, possibly a driving factor to the relatively close popular vote in the recent election. This is not just a national issue in relation to income tax, as property taxes are mixed into most monthly mortgage payments.
Having a Governor who is committed to cutting property taxes can increase your free cash flow on a monthly basis. This is where ideology and money interests interchange frequently. It can be comical to watch someone change their tune based on a couple of extra bucks at the end of the year.
National Security
National security may not be obvious as to how this affects your pockets. Don’t be mistaken, as this topic is very influential in global economics. The behavior of the stock market after national events such as 9-11 or even a plane crash is telling enough. Events that influence national interests at home OR abroad can directly impact our retirement accounts through our 401k investments. Hopefully, you have a diversified portfolio filled with a healthy dose of international and domestic companies.
National Security has become more of a cyber warfare issue. One domestic instance is how some Chinese hackers are hacking the accounts of some Amazon sellers. The wars of the current and future are being fought in cyberspace, rather than on the front lines holding a fully automatic machine gun. While it’s government vs government, it can also affect businesses and individuals in the case of Amazon.
Note: Some of those who run an Amazon FBA (fulfilled by Amazon) business have faced increased hacking of their listing by Chinese hackers. This can cost thousands of dollars!
After laying out these four areas of the ever-intriguing political arena, it’s clear why staying in the know is important. Make sure you are doing your best to get unbiased information. It’s becoming harder to do so nowadays. The solution to that is to read both sides. Don’t just focus on what you believe, focus on what you don’t. This approach will make your belief system well-rounded. At the very least it will help you gain an understanding of those who don’t agree. Coming from a family who escaped Communist Cuba, I can tell you that the concept of this article is important. Freedom is never more than one generation away from losing it, so cherish what you have.
[Related: Understanding the power of informed voting]
