Smart Money Moves to Protect Your Finances from D.C. Drama

If the current unprecedented chaos in Washington D.C. has you worried, you’re not alone. Judging by the plummeting stock markets, investors are also worried. But what can you do as a regular citizen to protect yourself and your money from what other nonsense comes out of the White House?

We looked through all the advice online, the good and the bad, to collect the simplest common-sense measures you can take to protect yourself and your money. Please keep in mind, of course, that everyone’s financial situation is different and nobody can say with any certainty what will happen next. The information in this article is our opinion and recommendation, not legal advice.

Background on The Current Chaos

The political uncertainty, gutting of government departments and welfare programs, the ongoing trade war, recent wide-ranging tariffs, and unpredictability about what might come next have sent investors, business owners, and economists into full panic mode.

Financial experts announced last week that a recession in 2025 is all but guaranteed. However, it is important to remember that the stock market reacts to news and outside events, and it does not predict the future. Investors are prone to panic and misinformation like the rest of us.

That being said, even if you don’t have money in the stock market, a market crash and a recession can and will still impact you and your savings.

The Best Way: Dollar Alternatives

We dive into more specific examples of this later in this article, but essentially the best way to protect your money from American chaos is to not have your money invested in America, especially the dollar. Preferably, you would want your investments or savings in some kind of liquid (or easy-to-access) form, not buried in a chest in the backyard.

As the dollar loses value and the Chinese and European currencies gain power, the inherent volatility of the U.S. market will be less protected by foreign investment, further driving down the value of U.S. investments and the U.S. currency.

Sell Stocks

Market experts will tell you that it is best to keep your money in the stock market because eventually the market will rebound and you will recoup your losses, eventually returning to the level it was at before the crash. This is usually good advice.

However, as we mentioned earlier, the stock market reacts to outside forces, it does not predict the future. Investors are reacting to the news of an incoming recession and high tariffs which will increase the cost of all goods, which will reduce corporate profits, which will cause them to lay off employees, which will increase poverty and unemployment, which can lead to a depression.

In this case, any money you have in the stock market will be completely eliminated and you will lose any value you earned from your investments over the last few years, and you will not be able to use those gains to help you pay for the goods that are now much more expensive.

Invest in Non-Elastic Industries

During economic hardships, luxuries and discretionary spending are the first things to go, while other goods and services will always remain necessary or even become more popular. Things like food, water, and other essentials will always maintain some level of value. If you have stocks in companies or industries that are subject to huge price fluctuations like entertainment, digital media companies, or banks, it might be best to reinvest those funds into stable industries that will be used throughout a recession or depression.

Buy Physical Goods

Money only has value because everyone believes it will be accepted at any store in exchange for goods or services. You can protect your money by either buying goods that can be preserved over long periods of time (like food storage, canned food, water jugs) or materials that you will need to use in the future or investing in physical materials that can be re-sold in the future for money (like gold, silver, copper, physical wells and land).

Buy Foreign Currency

In our current capitalist system, there always has to be a loser when companies or countries compete against each other, and by all expert opinions and historical precedent, the United States is going to be the big loser after this administration and its trade war are finally over. But who will be the winner?

The countries targeted by Trump’s tariffs, threats of military annexation, and other political tirades have begun seeking other countries to replace the United States in their trade. This has resulted in huge increases in trade between Europe and China and other countries. China especially will probably benefit the most because its economy and political system are much more stable than the U.S.’s and has an existing trade network that is only growing stronger as the U.S. grows weaker.

Keep Money in Index Funds and Similar Investments

Index funds are designed (according to those who sell them) to weather the damage done by market volatility and political shenanigans. They will include a combination of large company stocks, government bonds, and everything in between. If you can afford to keep your money invested in an existing index fund, then you should keep it there. Even better, if you think the market has reached its lowest point, it might be wise to invest more money in your index fund to take advantage of the low stock prices.

Sell Treasury Bonds and U.S. Dollar

There is no guarantee that anything will return to normal after the Trump administration, and by all professional estimates, the international market has been changed permanently. There is a likelihood that the U.S. dollar will not return to the same power it enjoyed in the past. If you have investments in U.S.-backed securities or in U.S. currency, then it might be in your best interest to sell these investments and transfer those funds to more stable and growing currencies or securities.

Maximize Your HSA and 401(k)

Things are about to get much more expensive, from fruit and clothes to healthcare and homes. Additionally, Trump and other Republican presidents have financed tax cuts for the wealthy by raising taxes on the poor or cutting public services. To avoid some of these increases and maximize how much money you have in the future to pay for things, you should consider maximizing how much money you are putting into your HAS or your 401(k) if you aren’t already.

Do Not Listen to Market Experts or Politicians

Aside from imminent price increases, nobody actually knows what is going to happen, and in times of uncertainty and panic, investors and rich people will inevitably look out for themselves and hope to pull others down with them to socialize their losses.

Everyone from politicians to news anchors, bankers, radio hosts, and your neighbor has a financial incentive for you to sink your money into their company, their industry, or their stocks. Always do your own research and invest with caution. Don’t invest more than you can afford to lose, and never trust anyone who tells you they know what is going to happen.

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