5 Personal Finance Lessons You Can Learn from President Trump

Cobus
11 May

Trump your finances : Personal Finance Lessons from President Trump

Before one of the most divisive modern elections the USA has seen, Donald Trump was best known for his wealth and financial successes, as well as his failures. While you might not be on track to become a billionaire, there is still plenty personal finance lessons you can learn from Trump and apply to your finances.

Diversify Your Investments

Trump has being quoted as saying that money never motivated him as much as using it to keep score while “playing the game” did. With the investment game, Trump bets big on the Atlantic City

With the investment game, Trump bets big on the Atlantic City casino industry. This ended up being a losing bet for Trump, as the competition from other casinos was too intense, and he struggled to attract the same customers that all of the Atlantic City casinos were fighting for.

In fact, Trump Hotels and Casino Resorts filed for bankruptcy four different times.

When it comes to your personal finances, you are likely not going to be investing in casinos any time soon, but you can still learn a big lesson from Trump’s failures. The lesson is: diversify your investments.

You might think you have the jump on the best new startups or next big thing in tech, but don’t put all of your eggs in that basket. Instead, mix up your investments to protect your money against potential losses from changes in the market.

The lesson is: diversify your investments. You might think you have the jump on the best new startups or next big thing in tech, but don’t put all of your eggs in that basket. Instead, mix up your investments to protect your money against potential losses from changes in the market.

“Playing the game” gets a little tricky, educate yourself and take full responsibility for your financial well-being by investing your money diversely and wisely.

Set Realistic Goals

In spite of his casino failures, Trump has seen plenty of success, too.

He took his building at 40 Wall Street that he purchased for $1 million and turned it into a $500 million building. To accomplish this goal, Trump made a clear plan and focused on his return on investment (ROI).

We can’t all invest in multi-million dollar real estate transactions, but you can set realistic goals for your personal finances.

Goals like saving for a down payment on a house, saving for retirement, or paying off credit cards within a certain amount of time are all realistic and achievable when you stick to a smart financial plan

Take Careful Risks

Any billionaire will tell you that it requires some risky moves to make that kind of money.

Trump is no different, and on the other side of the coin, there are plenty of risky investments he made that he would’ve been better off staying away from.

Trump Steaks and Trump University comes to mind, and if he would’ve done his research into the plausibility of these endeavours, he would’ve likely been able to avoid this costly mistakes.

Risks are necessary, but they shouldn’t be made blindly.

Do the research on your investments before putting money into anything. Unlike billionaires, you probably can’t afford to lose much money on a failed investment, so take careful risks.

Look into different options, read investment blogs and news, talk to a financial advisor, then take a calculated risk. Understand the consequences, both positive and negative, before you put your finances on the line.

Bankruptcy Isn’t the End

It’s hard to understand how a billionaire could file for bankruptcy four times and remain highly successful, but Trump has proved that it is possible.

If you’ve reached the point where bankruptcy is your only option, remember that it doesn’t mean you’ll never have financial success again.

Bankruptcy allows you to get relief from debt and creditors. Since it remains on your credit report for only seven to ten years, it won’t stick with you forever, too.

After a bankruptcy, work to rebuild your credit by getting a secured credit card, keeping close track of your credit score, and always making payments on time. It may take some time, but you will get your score back up again.

Find Pleasure in Your Work

Trump once said, [clickToTweet tweet=”“If you’re interested in ‘balancing’ work and pleasure, stop trying. Instead, make your work more pleasurable.”” quote=”“If you’re interested in ‘balancing’ work and pleasure, stop trying to balance them. Instead, make your work more pleasurable.””]

If you’re sticking with job solely because it pays the bills, it may be time to look for a new opportunity that gives you the financial support you need, but also the pleasure and fulfilment you seek.

It may be scary to leave a job, but there are ways to make it an easier transition.

Take courses to boost your resume, work a part-time job that gives you a great experience, or work on building up savings to help you get through any transitional phase.