Financial matters tend to be a huge sticking point in the context of presidential elections. And it's clear that Americans have certain concerns when it comes to their personal finances.
Although issues like Social Security, taxes, housing affordability, and the cost of healthcare are big ones for voters this year, there's one financial matter that seems to be taking priority over all others -- inflation. A recent Motley Fool Ascent survey found that inflation is American's No. 1 financial priority, with voters across all generations citing it as a top issue of concern.
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And it's easy to see why. In recent years, rampant inflation has battered consumers in just about every way imaginable. Not only has it gotten more expensive to keep the lights on and put food on the table, but an increase in home prices has forced many would-be buyers to effectively write off homeownership for the foreseeable future.
All told, Americans want relief from inflation. And while its pace has slowed in recent months, it will be interesting to see what this year's presidential candidates propose to combat it. Ultimately, though, your best bet is to take steps to inflation-proof your finances yourself.
Don't let inflation wreak havoc
Inflation is a persistent economic factor that consumers should always expect to deal with. And to be clear, inflation isn't always as rampant as it's been since the days of the pandemic.
But it's an issue that has the potential to hurt a lot of people's finances -- in the near term and in the long run. So it's important to take steps to protect yourself.
In the near term, keeping your larger expenses on the low side is a great way to safeguard against rising costs. If you lock in a smaller mortgage payment with a fixed loan, for example, it gives you more wiggle room in your budget to cover rising costs as they arise. The same holds true for car payments, which rank as another larger expense.
In the long term, it's important to invest for retirement in a manner that's likely to outpace inflation. And for a lot of people, that means loading up on stocks.
You need your investments to outpace inflation so that the money you save today is enough to serve your needs in the future. If you sock away $300 a month in a retirement plan over a 40-year period, all the while earning an average annual 8% return, which is a notch below the stock market's average, you'll end up with almost $933,000.
It's especially important to have a nice nest egg to fall back on in retirement because Social Security has historically done a poor job of keeping up with inflation. Although benefits are eligible for an annual cost-of-living adjustment, those yearly raises have long been inadequate, causing recipients to lose buying power year after year.
Look at the big picture
Inflation might be a big issue for you, to the point where it influences your vote. There's nothing wrong with paying close attention to each candidate's financial plans and priorities. In fact, that's a wise thing to do.
But at the same time, you don't necessarily want to rely on any given candidate to secure your finances. That's something you should aim to do on your own through careful budgeting, planning, and investing.
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