6 reasons why it’s important to save money before the election, regardless of whether Trump or Harris wins

With recent polls showing the two presidential candidates – Donald Trump and Kamala Harris – only a few points apart, November’s election could easily tip one way or the other.

Yes, you should exercise your right to vote, and yes, you are welcome to enjoy thoughtful and friendly debate with your friends and family who have different views on politics. But don’t forget to prepare financially for an unpredictable future.

Read more: I’m an Economist: Here’s My Prediction for Social Security If Kamala Harris Wins the Election

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In other words, start saving now because no one knows exactly what’s coming. Here are six reasons to save money before the election, regardless of who you think will win.

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Buffer against uncertainty

“Economic uncertainty often follows elections,” said Doug Carey, CFA, founder of WealthTrace. “By building your savings now, you will create a financial buffer regardless of how the next president’s policies affect the economy or financial markets.”

While you can’t rely on favorable policies or a strong economy, you can put yourself in a strong position to weather any storm that comes your way.

Learn more: I’m an Economist: Here’s my forecast for Social Security if Trump wins the 2024 election

Budget for higher tax rates

Attorney Amy Loftsgordon, editor at Nolo, noted that major tax changes are planned for late next year.

“Many provisions of the Tax Cuts and Jobs Act of 2017, such as increasing the standard deduction and reducing income tax brackets, are scheduled to expire at the end of 2025,” she said. “While this may sound a long way off, now is a good time to prepare for possible changes in tax laws by increasing your savings in case you have to pay more taxes.”

Regardless of which candidate wins, Congress would have to take action to change the expiring tax rules. Some rules could expire in either direction, other popular changes could be extended in either direction, and some new rules are likely to be added. Prepare now for changing tax regulations.

Persistently high inflation

The US economy has not yet overcome the risk of inflation. In fact, some experts argue that it will take years to recover from inflation if Trump wins, while just as many expect inflation to continue under a Harris administration.

“While inflation is no longer at its highest level in 40 years, the cost of almost everything from food to borrowing remains high,” Loftsgordon said.

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If you pick a policy proposal from either candidate, from tariffs or increased government spending to more subsidies and tax credits, you can argue that they are all potentially inflationary.

“When inflation and interest rates are high, it makes sense to put money into savings and pay off your existing debts rather than spending your available money,” she added.

Prepare for reduced Social Security benefits

When it comes to social security spending, the math simply doesn’t add up. Fixing the problem would require major benefit cuts or tax increases – both of which are unpopular, to say the least. That’s why neither party seems able to address the problem, and the House Budget Committee predicts that Social Security will be insolvent by 2033 with no solutions in place.

Therefore, you simply cannot count on the same Social Security benefits that previous retirees enjoyed. Prepare to pay for your own retirement so you’re not broke in your golden years.

You control your finances – not the president

People love to blame presidents and other politicians for every single suffering in their lives. But ultimately you are responsible for your personal finances, not whoever sits in the Oval Office.

You control your career choice, your savings rate and your investment decisions. Focus your energy on what you can control. Your future self will thank you for having more options available to you because you have saved and invested more money now.

The power of compound interest

In general, saving and investing sooner leads to exponentially greater wealth. Imagine you wait until you’re 50 and want to save $1 million for retirement in the next 10 years. At a (generous) 10% return, you would need to invest almost $5,000 each month.

If you started just five years earlier and have 15 years to grow your investments, you can invest less than half (less than $2,500) each month to reach the $1 million goal. And if you give it 20 years, you can reach $1 million by investing about $1,330 a month—all thanks to the power of compound interest.

So start now, and when the next president leaves office, you will be in a far better financial position.

Editor’s Note on Election Coverage: GOBankingRates is nonpartisan and strives to objectively cover all aspects of the economy and present balanced reports on politically focused financial stories. For more information on this topic, visit GOBankingRates.com.

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This article originally appeared on GOBankingRates.com: 6 Reasons It’s Important to Save Money Before the Election, Regardless of Whether Trump or Harris Wins