Laura Beck
Mar 7, 2025
“A general rule of thumb is to float 20% of all earned income towards savings while holding at least three to six months of monthly expenses in a ‘rainy day fund,'” DeLuca explained.
In an article discussing how President Donald Trump's presidency might impact personal savings, financial expert Anthony DeLuca from RetireGuide shared key advice on how individuals should approach their savings:
The Six-Month Rule: DeLuca emphasized the importance of maintaining a solid savings strategy, with some adjustments for 2025. He recommended saving 20% of earned income and having at least three to six months of expenses set aside in a "rainy day fund." He personally advised, "Someone should always hold at least six months of monthly expenses. We humans tend to underestimate emergencies."
Factor In Trade Changes: DeLuca warned that Trump's planned tariffs could lead to price increases. He explained that a 25% tariff on imports from Mexico and Canada and a 10% tariff on imports from China, in addition to existing tariffs, could drive up everyday costs. To prepare for these potential hikes, DeLuca suggested keeping extra cash in savings rather than investments for liquidity: “Keeping some additional funds in your savings account — as opposed to investments — would give you the liquidity you might need to cover these higher costs.”
The Banking Wild Card: DeLuca also highlighted the potential impact of Trump's deregulatory plans on the financial sector. While some believe deregulation could spur economic growth, DeLuca pointed out a downside: “These deregulations could cause higher credit card fees due to a lack of oversight.” This makes it even more crucial to maintain a healthy emergency fund.
DeLuca's advice focuses on preparing for both potential emergencies and economic shifts under the new administration by ensuring strong savings practices and sufficient liquidity.