3 Money Moves To Make Before the 2026 Midterms — No Matter Who Wins
Election season doesn't have to turn your finances into a stress test. Yes, markets tend to get jittery around November — and no, you can't predict the outcome or how the economy will respond.
“Volatility during election season is normal,” said Eric Mangold, founder of Argosy Wealth Management. “While that may not be easy on your stomach or 401(k) balance, it is common to see not only volatility but also some declines leading up to the elections.”
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Instead of gambling on politics, focus on what you can actually control. Whether taxes go up, down or sideways, these three moves will shore up your finances regardless of which party takes the win.
Build a Policy-Proof Emergency Cushion
An emergency fund is always recommended, whether it’s an election year or not. Having a buffer for unexpected expenses can help prevent you from going into debt and reduce the need to sell investments during a market downturn. Mangold suggested boosting your savings to ease worries about the midterms.
“Financial planning rules and guidelines suggest you should have three to six months saved in your emergency fund, but these are guidelines,” he said. “I prefer and frequently recommend having at least six months of expenses saved.”
Review Your Taxes and Cash Flow
Market volatility can increase around midterm elections, especially around September and October, per Reuters. But you can stay on top of the areas you can control, including your tax situation, debt payments and monthly spending. Start by getting granular about your finances.
“Know exactly what comes in every month, what goes out, what you’re paying in taxes and how much of your income is actually producing more income,” said Peter Diamond, a Certified Bankability Expert®. “You can’t control an election, but you can control what you own, what you owe and where your money goes.”
Diamond also recommends looking at whether you have investment losses that could potentially be used to offset gains. Some tax-planning opportunities are tied to the end of the calendar year, so reviewing your situation before the end of the year can help you identify opportunities that may otherwise be missed.
This is especially critical if you're self-employed, a business owner, or your income has shifted significantly this year. Review your tax withholding and estimated payments now — before year-end — so you can make adjustments.
“Nobody wants to find out in April that they’ve been underpaying all year,” Diamond said.
Also audit your debt. “Consumer debt like credit cards that drains your monthly cash flow is very different from debt used to acquire an asset that produces income,” Diamond explained. “Pay down expensive debt that isn’t making you money, protect your liquidity and concentrate on increasing recurring monthly cash flow.”
Don't Make All-or-Nothing Investment Bets
Here's where most people slip up: making election-driven investment decisions that torpedo their long-term plan.
"Trying to time the market... doesn't usually work in your favor," Mangold said. "Historical data shows that [it's] typically counterproductive to your long-term investment goals."
Diamond agreed. "Don't blow up a good long-term financial plan because you're trying to predict politics," he said. "I see people wanting to sell investments, sit on cash or completely reposition their portfolio because they think they know what an election will do to the economy and that's speculation, not planning."
The Bottom Line
You can't control who wins in November or what policies follow. But you absolutely can control your emergency reserves, your tax strategy and whether you stick to your investment plan. That's how you actually build wealth regardless of what's happening in Washington.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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