How Elections Can Impact Your Personal Finances

What's at stake in the elections?

According to G1, the congressional elections in 2026 are not just a political event; they have the potential to directly impact your financial life. The new deputies and senators taking office in February 2027 will have to deal with decisions that could alter taxes, the cost of living, and even the allocation of public funds. The ongoing tax reform is one of the main points that will be debated and could affect how much you pay in taxes.

With tax reform expected to begin in 2027, changes in tax laws could impact your income and everyday expenses. One of the main changes is the replacement of taxes like PIS and Cofins with the new Contribution on Goods and Services (CBS), which could affect the prices of the products and services you consume.

Why does this matter for your finances?

The decisions made in Congress can have direct consequences on your wallet. For example, if the inheritance tax (ITCMD) rate increases, this could mean you pay more when inheriting assets, depending on the state you live in. If the limit goes from 8% to 16%, families receiving inheritances could feel a significant impact depending on the value of the inherited assets.

Moreover, the potential non-extension of the payroll tax exemption could increase costs for companies, which might end up passing these costs onto consumers in the form of higher prices.

Practical impact on your daily life

For someone earning a salary and paying bills, what does all this mean in practice? Let’s consider an example. Imagine you earn R$ 3,000.00 per month and due to tax reform, the taxes on products increase. If CBS is applied and prices rise, you could see a larger portion of your salary going towards basic expenses such as food, transportation, and services.

If the payroll exemption is not extended, some companies might choose to lay off employees or refrain from hiring new staff, which could affect unemployment rates and, ultimately, your financial security. All of this could impact your ability to save and invest, which are essential for building a stable financial future.

What can you do now?

Preparing for these changes is crucial. Here are some actions you can take:

• Review your budget: With uncertainties in taxes, now is the time to take a look at your monthly budget. Use the 50/30/20 rule to ensure you're allocating at least 20% of your income to savings and investments.
• Create an emergency fund: If you don’t have one yet, start building an emergency fund that covers 3 to 6 months of expenses. This can protect you in times of instability.
• Stay informed: Keep up with news about the elections and discussions in Congress. Understanding the proposals and their impacts can help you make more informed financial decisions.

Connection with financial organization and ADXIS

Political and economic changes may seem distant, but they have a direct reflection on your personal finances. Organizing your finances using tools like ADXIS can help you prepare better for these uncertainties. By following the 50/30/20 method, you not only control your expenses but also prepare for unforeseen events that may arise with changes in the economic landscape.