Doing what you're "supposed to" with money just got a little harder
Starting in 2025, implemented policies will likely make achieving some version of the American Dream even harder than it already is
This season of It Doesn’t Make Cents is all about the “supposed to” milestones we’re encouraged to reach in life. And, of course, making those moves requires money.
But what happens if policies make it even harder to follow the prescribed course?
Here in the United States, we might soon find out.
The Heritage Foundation has periodically published its “Mandate for Leadership " over the last 40 years. President Ronald Reagan implemented many of its policy suggestions during his time in the White House, starting when he handed it out to his first cabinet. During his first term, President Donald Trump used some of the suggestions laid out in the most recent version at the time.
The current version, which is part of the infamous Project 2025, lays out some potential policies that could impact your ability to meet milestones—if you decide that’s what you want to do with your money and your life.
Some of the main points to consider:
College education
Our first episode of Season 2 focused on college. Do you really need to go to college? Is it a waste of money? Or is it still one of the best ways to get ahead?
Well, depending on how seriously the next U.S. administration takes the current version of the Mandate for Leadership, it might not matter for most people.
The plan calls for reinstating canceled student loans
It guts the idea of loan forgiveness
Gets rid of the office of Federal Student Aid (along with the rest of the Department of Education)
The changes, if enacted, would put college out of reach for most people. It would also lead to those who have already been through college getting crushed under the weight of their student loan debt without income-driven repayment or forgiveness. Inside Higher Ed takes a look at potential outcomes, and it’s not pretty.
Housing
Harris proposed building more housing units in the U.S. and offering enhanced down payment assistance to first-time buyers. Project 2025 takes direct aim at affordable housing policies. If put into place, these policies would make buying a home harder for everyone. And, even if you prefer renting, as we discussed in our episode on housing, the reduction in available housing would also hit renters pretty hard.
We’ve already seen that the current Supreme Court, which is likely to tilt even more heavily to the right now that Trump will get one—possibly two—more picks, is willing to criminalize homelessness.
Forget about the rent vs. buy debate. Many people will be stuck trying to scrape enough to pay for housing or risk ending up in jail or in some other type of detention. Right now, we debate the American Dream of owning a home and talk about how it’s ok to choose renting. But will many of us even have a choice? It depends.
Marriage
This one is something of a doozy. In this season, we talk about the costs of marriage, as well as things to think about before you tie the knot. We even go through some of the disadvantages, like how our system financially punishes disabled people who get married.
But if you decide you WANT to get married, what does it mean with potential policies? Conservatives have already put no-fault divorce in the crosshairs. While you don’t go into marriage assuming a divorce, what if you need one? Proposed policies would make it harder to obtain that divorce—even in cases of abuse.
For LGBTQIA+ folks, things could be dicier. Justice Clarence Thomas, in his concurring opinion in the case that effectively overturned Roe v. Wade, suggests that opinions like Obergefell, granting LGTBQIA+ folks the right to marry, should also be revisited. Project 2025 focuses heavily on heteronormative families and an administration that embraces the current Mandate for Leadership would do much to impact this situation.
The ability to marry impacts various financial realities like:
Taxes
Health insurance
Healthcare proxy
Guardianship of minors
Ability to buy a home or obtain other housing (enacted policies could explicitly allow for discrimination against LGTBQIA+ people)
Children
Many younger and younger-ish people are already deciding that they don’t want to bring children into this world. And cost is a big factor.
Policies likely enacted by the incoming administration wouldn’t make it any easier to have kids. Affordable childcare is already an issue, and Project 2025’s suggestions would only make it worse.
Plus, women would be putting their lives in greater danger by being pregnant. As we mention in our episode, the United States already has one of the worst maternal mortality records of developed nations. Abortion bans only make it worse. Indeed, in states with more restrictions, the maternal mortality rate is higher.
Project 2025 essentially suggests getting rid of all abortions in the United States. Why would you even risk getting pregnant in this climate? It makes zero sense.
What can you do?
Right now, these are just possibilities for U.S. policy-making. Who knows if anything will be enacted? But if you’re worried, there are some steps you can take to shore up your position.
Build resilient community. Start with your community. Who in your area can you connect with? What can you do together? Can you plan for mutual aid? Community ties and your networks are important. Especially if you might need help later.
Continue building your emergency fund and other assets. Check your bank and investment accounts. Set money aside. Don’t forget to keep some in cash, so that it’s liquid. Even if the stock market crashes, there’s a good chance it will recover in time. If it doesn’t we have bigger problems than money. Consider how you might weather a period of long unemployment and/or elevated prices.
Plan which items to cut. Review your regular spending and plan which items you’d cut first. In some cases, this can be a good time to cut back on spending and reduce the number of subscriptions you have.
Reduce debt. If possible, reduce your debt. This can free up your lines of credit so you have room in an emergency. It also positions you to keep your bills low if needed.
Get your legal paperwork in order. LGBTQIA+ couples need to prepare. Name each other power of attorney. Check beneficiary status. Appoint your partner as your healthcare proxy. If they really do reverse protections and your marriage dissolves, you will need all of these appointments and legal paperwork done so that you can take care of each other.
Stock up. Now is the time to buy items you might need later. If you can afford to, get high-quality items you know will last a long time. Make a plan for food storage if you have the ability.
Hone your skills. Review your skills and talents. What are things you can do to make money or prepare to barter with others? A skills inventory can help you reduce costs (if you can repair clothing, garden, etc.) and can also make you an attractive mutual aid partner.
Bottom line
Our podcast is about looking at how to chart your own course with your money, using it to make your life work for you. But if the incoming administration implements the things it says it will—and if it uses the current Mandate for Leadership as a blueprint—you’ll find your choices increasingly limited.
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