President Donald Trump and Elon Musk have followed through on their promise to shake things up, but so far the policies have been changing at a head-spinning rate. And while Musk has since departed from the Department of Government Efficiency (DOGE), some of his actions still have impact. And he’s still at the helm of Tesla, so any moves there could also impact the stock market.
From tariffs and a controversial budget proposal to federal workforce reduction, healthcare and public service funding cuts, and Tesla’s instability, Trump and Musk have created market uncertainty.
Read Next: Trump’s Tariffs: Here’s What Economists Think Will Happen After the 90-Day Pause
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Navigating through turbulent times requires proactive planning. To shield your finances, here are six middle-class hacks to help, according to experts.
Also see three things DOGE did in Trump’s first 100 days and how they affected your wallet.
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Focus On What You Can Control
Those in the middle class could be experiencing some financial headaches right now, and while it’s not all controllable, there are things they can do to try to offset the chaos.
“Build a strong emergency fund, diversify your savings and avoid chasing every hot headline,” said
Danny Ray, founder of PinnacleQuote. “In fact, smart tax planning today could shield you from costly surprises tomorrow. Furthermore, keeping high-interest debt low gives you flexibility no matter how the political winds blow.”
Overall, steady, disciplined financial habits are your best defense amid market chaos.
Check Out: Trump Wants To Eliminate Income Taxes: Here’s How Much Extra You’d Take Home If You Make $150K a Year
Index Funds
The policy changes that have been enacted have also impacted experienced money experts. Andrew Lokenauth, a finance expert with Fluent in Finance, said he’s focused on index funds, which have been his go-to to protect his assets.
“I moved about 60% of my portfolio into broad-market ETFs — they’re way less sensitive to individual company drama,” he explained. “The results speak for themselves: My balanced index approach stayed steady through five major Musk-triggered market dips.”
Many index funds are low-cost as well, so they’re not out of reach for middle-class investors.
Stablecoins
Investing in stablecoins is another key move Lokenauth has made. Stablecoins are a type of cryptocurrency that is designed to keep a stable value by attaching market value to an external asset, like gold or the U.S. dollar.
“Converting some crypto holdings to USDC or USDT helps dodge the worst of the volatility,” Lokenauth said. “Last spring, this saved my portfolio when Bitcoin dropped 12% after a particularly chaotic Trump speech about crypto regulation.”
Keep Cash in Different Banks
Another middle-class hack Lokenauth is using is spreading money across multiple banks.
“I keep my cash distributed between three different institutions — traditional banks, online banks and credit unions,” he explained. “This strategy protected my emergency fund during the regional banking mess.”
I Bonds and Treasury Inflation-Protected Securities
I bonds have a set interest rate for a six-month period and adjust every six months based on inflation. They can be sold after a year, but if you sell before you’ve held on to them for five years, you will lose three months’ worth of interest, per Treasury Direct. They have a $25 purchase minimum, so you don’t need a lot of money to get started.
Treasury Inflation-Protected Securities (TIPS) are sold for a five-, 10- or 30-year term. They pay out interest every six months, and the principal can go up or down over the term length. You can also sell them before they mature or hold off to get the full benefit.
Both are government-backed and some of Lokenauth’s favorite financial protections right now. “They’re completely disconnected from both Trump and Musk’s spheres of influence,” he said. “The current rates aren’t amazing … but I sleep better knowing a chunk of my savings is untouchable by their antics.”
Lokenauth explained that this is a simple way to avoid market chaos. “The psychology behind this approach is simple — government securities don’t care about Twitter drama or policy theatrics,” he said “When I shifted $20K into I-bonds, that portion of my portfolio stopped dancing to their tune completely.”
Local Real Estate Investment Trusts
A local real estate investment trust (REIT) is a company that owns income-generating properties in specific regions that people can invest in, and they could be a good option for middle-class investors.
According to Lokenauth, local market REITs can provide fantastic insulation from national chaos. “I’ve invested in several small-market residential REITs that focus on middle-income housing,” he said.
The key is picking REITs that operate in stable regional markets. “My Midwest-focused REIT actually gained 8% while tech stocks were getting hammered by the Tesla roller coaster,” Lokenauth said. “Local real estate fundamentals tend to ignore the national noise.”
Amid market chaos, developing a solid strategy is vital in protecting your money. “The goal isn’t to get rich quick — it’s about building a fortress around your finances that these policy swings can’t penetrate,” Lokenauth said. “My approach has helped my clients maintain steady growth despite all the chaos.”
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: 6 Middle-Class Hacks To Shield Your Finances From the Trump vs. Musk Policy Chaos
