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6 Effective Strategies to Safeguard Against Reckless Spending by the Biden Administration and Democrats

Biden’s reckless spending has dealt a huge blow to our once great economy. We’ve seen prices jump in the grocery store, at the pump, and in our homes as inflation reaches scary heights. 

His current plans will likely only make the situation worse. Ignorance, incompetence, or both?

As Americans, we must protect our finances against further fallout from this egregious campaign. Use these six effective strategies to safeguard your hard-earned money.

1. Investing in Gold: A Secure Hedge Against Inflation

Gold has caught the eye of humanity for as far back in history as we know. It’s been sought after and used as currency for thousands of years. Ancient leaders like King Tut were buried in the stuff – talk about a long-term investment.

We love gold just as much today. It retains value exceptionally well even when market conditions are all over the place.

The Biden Administration’s reckless spending can cause a lot of volatility for stocks, but gold weathers the storm well.

Gold’s also quite resistant to all the inflation we’re dealing with right now. Where stocks typically fall, gold has a tendency to remain steadfast.

Having a little gold in your portfolio may offer some protection against whatever else the government throws at us.

Take 2022 as an example. The price of gold actually grew, while the S&P 500 fell 20% from inflation.

You can pick up physical gold bars or coins if you have a safe place to store them, but most folks look to gold ETFs or mutual funds. American Alternative Assets has a fantastic free guide that can help you get started with gold and other precious commodities.

2. Capitalizing on Real Estate: Tangible Assets for Long-Term Stability

Real estate is another excellent avenue to turn to when most other markets are a mess. People always need places to live, and you can make some serious money off the demand.

Properties tend to appreciate over time in normal conditions, and inflation drives their worth that much faster. It’s up to you to renovate or add value in other ways that increase the price tag further. In theory, you can make some serious bank when it comes time to sell.

In the meantime, using your real estate as rentals can pay off in spades as inflation runs amok. You can bump up rent to tenants to compensate for rising costs while increasing the overall amount you earn each month.

It becomes very hard for people and families to buy homes as Biden and his crew sink the economy. Instead, the demand for rentals increases as folks wait for tumultuous times to calm down.

Buying properties directly gives you the freedom to make those upgrades and set whatever rental price you deem fair.

If you don’t have a large chunk of change, consider investing in real estate investment trusts (REITs) to own a small piece of one or more properties. REITs pay out regular dividends to shareholders in addition to gains from share growth.

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3. Preparing for Emergencies: Stocking Up on Emergency Meal Kits

We really have no idea how far Biden’s reckless spending will send us into a hole. It’s important to be ready for any unforeseen circumstance down now and down the road.

Think back to the onset of the COVID pandemic back in 2020. Many people were caught off guard by a goal shutdown. Essential products from food to toilet paper flew off the shelves in most stores and became incredibly difficult to find.

The resulting panic was devastating for a lot of people. Being unable to pick up the food items you or your family need contributed to a new level of anxiety and depression.

Some stores are still recovering from the effects of the virus. Where I shop, there’s never a guarantee that any product will be there from one week to the next. Conditions only seem to get worse as the economy struggles from excessive spending.

Who’s to say something like this won’t happen again if our country experiences shortages resulting from the current administration? Stocking up now can protect you and yours when other people are panicking all over again.

Emergency meal kits are a convenient solution to unpredictable long-term food scarcity. These products are made specifically to be stored and used when the need arises.

Depending on the item, a single supply can contain several types of meals to feed a small army. Each kit can last up to 25 years so you can be ready no matter what happens.

The sense of security alone makes it worth having these kits around.

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05/18/2024 12:05 am GMT

4. Diversifying Investments: Exploring Alternative Assets

We all saw first-hand how the inflation caused by the Biden campaign led to a bad year for the stock market in 2022. Stocks are always the first to go topsy-turvy when the economy hits some bumps, which can spell disaster for those of us trying to make money investing.

No one’s saying to leave stocks out of your portfolio entirely. It’s just a smart move to add in some alternative assets to fall back on when the stock market is down

Physical works of art are an excellent option. They often change in value independently of current market conditions and often beat the pants off the S&P.

You don’t have to be an art connoisseur to get involved, if you know where to look. Masterworks is the first of its kind to buy and sell shares of multi-million dollar works of art that you can own a piece of.

The company launched in 2017 and has already had solid success in its endeavor. They’re up to 13 pieces of art sold with an average return above 20%.

There’s plenty of art to go around, too. Masterworks has purchased 278 works to date, contributing to over $786 million in total assets under management.

The premise is simple. The experts at Masterworks figure out which artists have the most momentum and work out a fair price on one of their works.

Each piece gets filed with the SEC to keep everything above board. It lets Masterworks sell fractional shares to folks like us. You contribute a sum toward that piece based on the price of a fractional share.

Masterworks holds the artwork for anywhere between three and ten years and watch the value grow. You get your share of the proceeds when it’s time to sell.

It’s no problem if you can’t wait that long. Masterworks has a secondary market you can liquidate your portion in if you need some cash sooner.

Other options include forex, peer-to-peer lending, and venture capital to name a few. Be sure to take advantage of reputable platforms for alternative investments when figuring out where your money should go.

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5. Budgeting and Financial Discipline: Managing Personal Finances

At the end of the day, it may not matter how much you make if you can’t effectively manage your finances. If you’re not careful with your spending, you can find yourself in some really hot water.

Credit cards as we know them are one of the best inventions of the 20th century for making quick and easy payments. However, these little pieces of plastic can be a terrible curse.

It’s so easy to waive your card over the machine and continue on your day as if you didn’t actually spend any money. However, overspending on your credit cards can lead to stupidly high interest rates that can sink you further into debt with each passing day if you’re not careful.

To prevent such a disaster, create a budget to keep your spending in the green.

You’ll first need to list out all your income from employment and other sources to know where you stand. From there, carefully track each expense to ensure what’s going out doesn’t eclipse what’s coming in.

Do this every month to get an accurate picture of where your money disappears. Make sure you don’t cheat or misrepresent a purchase.

Hold back 20% of your income to create an emergency fund. You can use this to climb out of debt or save for retirement.

The rest of your money goes toward items you need and those you want. If possible, keep your needs (housing, groceries, healthcare, and the like) to 50% of your budget.

This leaves the rest of your money available for the things you want in life. It’s absolutely okay to set aside funds for enjoyable experiences such as travel or shopping.

Setting goals for where you want to be financially down the road can keep you motivated. Making smart financial moves can grow your nest egg and put you in an even better place for the future.

Websites like The Motley Fool are full of tips for growing your finances through investing and the stock market. It has a comprehensive guide on setting retirement goals and retirement accounts you can use to get there in a timeframe you want. You’ll also find credit card and bank account suggestions for growing your money faster than it would otherwise.

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6. Seeking Professional Guidance: Consulting Financial Advisors

Don’t underestimate the impact an advisor can have on your financial success. These experts can help you make sense of your money situation and discover the best ways to keep your money safe.

There aren’t any guarantees when it comes to income or investing. Sound advice can save a sinking ship or help you navigate toward the goals we mentioned in step five.

This information is especially beneficial for someone just starting out with budgeting or investments.

You may end up spending some cash upfront, but the long-term benefits can be staggering.

For one, you’ll likely end up saving both time and money you’d waste trying to stay the course on your own. Spinning your wheels or making choices based on trial and error are a slow way to learn. A single poor investment choice can take years to come back from.

These gurus have plenty of valuable insights to impart to you. An advisor can help you mitigate risk and recommend strategies with your money based on experiences they’ve already been through.

Not every financial advisor is a winner, so do your research before picking one out. We’re keen on Farther Finance for their personal guidance and working to grow your wealth for generations to come.

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Conclusion

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We can’t control what Biden and the Dems are doing in office, but that doesn’t mean we’re helpless against what’s going on.

There are plenty of avenues you can sink your money into that offer a buffer from economic turmoil. Gold, real estate, and other alternatives like crypto or commodities can still grow your money in questionable times.

Nothing’s stopping you from getting your personal affairs in order, either. Stocking up on emergency rations and being prudent with your expenses can keep you safe even if the country falls more into disarray. A financial advisor can help connect any dots you’re unable to on your own.

Bottom line, it’s up to you to take action with your current situation and be ready for whatever’s to come. Securing your personal finances isn’t easy, but it’s well worth the effort.

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Noah Zelvis is a writer with more than 18 years of experience under his belt. He started out by blogging his adventures overseas and quickly found success creating paid content thanks to his ability to convey his articles in a clear and concise manner. Equipped with an engineering background and an analytical mind, Noah has a passion for all things business and finance. His personal investment journey began at a young age, helping his grandma with her portfolio. That spark blossomed into a never-ending search for the best stocks Noah still carries today. He’s thoroughly researched the corporate financial world as well and has an innate understanding of the banking and credit sector. Other published works also include travel, running, video games, product reviews, and more. Now, Noah uses his expertise to share his financial and investment know-how here at Stock Dork. When not at his desk, you’ll likely catch Noah traveling or running.