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But other factors affect individuals money more than whos in the White House.
They include things like the economy,interest ratesand even where you live and work.
Here are five things that affect your money more than who currentlysits in the Oval Office.
Federal Reserve
The Federal Reserve is the central bank of the United States.
It performs several key functions that influence the economy and, by extension, your finances.
National and regional employment rates can affect your job options as well as your finances.
The lower the unemployment rate is, the better.
Currently, the national unemployment rate is4.1%.
Then there are long-term interest rates.
This is to venture to stabilize prices and the economy.
States and Local Governments
The federal government isnt the only thing that affects your money.
Local and state governments can as well.
Take taxes for example.
On a base level, higher taxes means less money in your pocket at the end of the day.
State taxation can affect both individuals and businesses.
States may have different housing regulations or incentives that can affect individuals more than the federal level.
High Interest Debt
The Fed sets the effective federal funds rate, which influences interest rates.
Say you take out a 5-year auto loan for $30,000 with a 6.5% interest rate.
Over the five years, youd be paying $5,219 in interest charges alone.
But what if you have a credit card?
Say you owe $10,000 on a credit card with a 25% interest rate.
Youd also be paying roughly $7,250 in interest alone for a total of $17,250.
If you have it, you might want to prioritize paying it off as quickly as possible.
Many employers set their pay rates based on factors like experience, education, and skills.
But you might also find jobs that pay more (or less) based on where you live.
While this is only one company, making changes to compensation based on location is nothing new.
It can, however, have an adverse effect on your money.
Considering how your budget can directly tie into how much debt you have, this makes sense.
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