How to Adjust Your Finances for Trump’s Tax & Tariff Policies

Prices are rising, and Trump's second term is already shaking up the economy in ways that could impact your everyday spending.

How to protect your wallet before the OBBBA bill kicks in

The One Big Beautiful Bill Act has been officially passed and is expected to take full effect by the end of 2026. The bill includes new tax policies, expanded tariffs, and changes to benefit programs. That means your money habits might need a serious refresh.

Start Shifting Your Spending Habits Now

Inflation continues edging upward. U.S. consumer prices rose 2.7% over the 12 months ending June 2025, up from 2.4% in May. The Fed warns that tariffs alone could push inflation another percentage point higher through early next year, possibly raising rates into the 3‒3.5% range.

Here’s what that means for your budget:

• Choose American‑made products when you can. Domestic goods avoid those surprise fees.

• Support local farms and shops. Fresh produce and pantry staples from nearby sources tend to dodge big import hikes.

• Stockpile non‑perishables now, before prices rise again.

These steps aren’t drastic. But taken together, they form a smart defense against rising costs.

Build a Cushion

Now is the time to strengthen your emergency fund. With cuts potentially coming to food assistance programs, Medicaid, and other social services, a solid backup plan is essential.

Experts typically recommend saving at least three to six months of expenses. But with the current level of uncertainty, more is better, especially if you’re self-employed or supporting a family.

Trimming the fat from your monthly bills is one of the fastest ways to free up extra cash. Start with the low-hanging fruit: cancel duplicate streaming services, switch to a more affordable phone plan, and eliminate subscriptions you barely use. Even a few quick calls can shave down your expenses and funnel real money into your emergency savings.

Stay Sharp on Tax Changes

The current rules, set by the Tax Cuts and Jobs Act, are scheduled to end after 2025. But Trump’s new plan, rolled into what he’s calling the One Big Beautiful Bill Act, is already moving things in a different direction.

Here’s what that could look like for everyday earners:

• No more federal taxes on Social Security income, tips, or overtime pay

• Estate taxes (the tax on large inheritances) will only apply to amounts over $15 million per person, starting in 2026

These changes could result in noticeable changes to your take-home pay and long-term savings. One model from the University of Pennsylvania estimates that lower earners could see about $320 more per year, while the wealthiest Americans could gain more than $376,000 annually.

If you run a small business or earn income outside a 9-to-5 job, this matters even more. Get ahead of it. Talk to someone who understands tax strategy and make sure you’re set up to take advantage of the new rules before they kick in.

Take Another Look at Your Investments

The stock market had a strong run last year, but things are starting to shift. Inflation is rising, bond interest rates are going up, and investors are becoming more cautious.

Some industries might benefit more than others. American manufacturing, oil and gas, and defense companies could benefit if the government increases its domestic spending. However, industries that rely on imports or foreign labor, such as some retail or tech companies, may struggle if trade tensions escalate.

Now is a smart time to review where your money’s going. If everything is tied up in one sector or one type of investment, think about spreading it around. A healthy combination of stocks, bonds, and more stable options can help you stay balanced in times of uncertainty.

You do not need to completely overhaul your portfolio, just make sure it still fits where things are headed.

Don’t Wait for Things to Get Messy, Prepare Now

Things are shifting fast. New policies are rolling out, prices are just beginning to rise, and the rules around taxes and spending are starting to change.

This is not the moment to wait and see what happens.

Start with what’s in front of you. Tighten up your monthly spending and build some savings while you still can. If you haven’t looked at your tax or investment strategy in a while, now’s a good time to check that everything still lines up with the direction things are headed.

These don’t have to be big changes. Just smart ones.

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