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It is perhaps the worst-kept secret in the country that Prime Minister Philip Davis will soon ring the election bell, ushering us into the long and familiar season of election campaigns. During this time, many promises will be made and many claims will be repeated, which makes one thing certain: the right questions must be asked. With that in mind, I sat down with Pamela Ferguson, vice president of investments, and Angelo Butler, manager of corporate advisory services, to ask the pertinent questions about the economy that every voter must keep in mind heading to the polls.

McCartney: Pamela, why should the average person care about the economy during elections?

Ferguson: The economy is at the heart of every election, shaping the lives of everyday people far beyond campaign slogans. When policymakers debate taxes, public spending, or support for businesses, they are influencing the cost of groceries, the stability of your paycheck, and the opportunities available to you. The phrase “it’s the economy, stupid” from the 1992 U.S. presidential race remains relevant, because what matters most is how economic decisions impact real lives. That’s why understanding the economy during elections is not just important, it’s essential to your everyday life.

McCartney: Angelo, what economic promises should people listen to more carefully?

Butler: During a campaign, there is no shortage of promises made. [People] will often to listen to what promises may benefit them directly, but there are also promises that affect the national economy, which will ultimately affect individuals. Some of the promises will include reducing the cost of living, increasing jobs and wages, reducing the national debt and housing booms. It is important to consider the pros and cons of any promise, as there is no free lunch in economics. Any cuts in tax or proposed debt reductions must be made up either with additional taxes elsewhere or a reduction in spending. Outside of custom duty and VAT reductions, the government has limited control over the cost of living as our prices are imported. Any promises made must coexist with the fiscal reality of The Bahamas and should show both the benefits and costs before you accept that it is achievable.

McCartney: Pamela, what, if any, is one smart financial move you can make during an election season – no matter the outcome?

Ferguson: Elections are temporary, but your financial well-being is permanent. No matter how often political changes happen, financial wisdom is always relevant. The smartest move during election season, or any time, is to take control of your finances: prepare yourself. Embrace timeless habits like working hard, making thoughtful spending decisions to keep debt under control, saving regularly, and investing with knowledge. Build a financial foundation that stands strong no matter which political party claims victory. Since you can’t control election results, do not let them dictate your peace of mind. Focus on what you can control: your income, spending, and savings. This ensures you are financially stable no matter which political party comes out on top. While some may hope their political party wins for insider benefits, the truth is, no matter who wins, your financial security is rarely shaped by politics, so focus on building a future that doesn’t depend on election results. Be prepared and develop a financial life that performs in every season.

McCartney: Angelo, what should people focus on personally, regardless of who wins?

Butler: One of the best decisions an individual can make is to make themselves as political-proof as possible. This is a state where you can live your life at a comfortable level regardless of which government or policy is in place. Uncertainty is one of the few certainties of life, and [daily] we see how political decisions can affect the economics of countries and individuals. The feast and famine lifestyle lived by many over five-year intervals is not a desirous lifestyle and our decisions should not be based solely on political outcomes. Individuals should build financial buffers, including emergency funds which can get them through any short-term political, or economical, challenges. As best as possible, individuals should strive to reduce their debt and only use good debt when necessary. Improving your skills to remain competitive in the workforce will also assist in shielding you from any political decisions.

Need help reaching your financial goals, reach out to us at CFAL for a financial planning session. Our certified financial planners are here to assist you with budgeting, saving, and investing needs. T: (242) 502-7010 | E: info@cfal.com | W: www.cfal.com Follow us on social media for additional tips and insights.