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President Donald Trump’s “Big Beautiful Bill” finally cleared the House and the Senate and was signed by the president on July 4. The bill has several policies that could impact the middle class. Making some money moves and preparing for the new changes can help you save money and grow your portfolio.
Here are some of the top money moves the middle class should make.
Also see how much the definition of middle class has changed in every state.
Capitalize on Clean Energy Credits Now
The bill is cycling out of energy credits, which affect electric vehicles, solar panels and other clean energy sources. Chad Gammon, CFP, owner of Custom Fit Financial, suggested making clean energy purchases before the deadline if you’ve been holding out.
“If you are considering any upgrades, now would be the time to do it. Some credits, such as electric vehicles, are available until September 30, 2025. Other credits, like the residential clean energy credit, will end on December 31, 2025. This can help if you anticipate higher energy bills in the years to come, and reputable installers can assist with an estimated payback period,” he said.
Open a ‘Trump Account’
A “Trump account” can give your child a head start with investing money and accumulating wealth. Gammon highlighted the promising opportunity while encouraging people to monitor how it will work before investing additional money.
“If you have a child in 2025, I’d look into opening a ‘Trump account.’ The federal government will give $1,000 as a starter contribution. There are options to contribute further. I’d wait for more details on that, but would set it up for the initial $1,000,” he said.
Children who are born between 2025 and 2028 are eligible for a $1,000 deposit, per CNBC. The money in the account will be invested in a fund that tracks the U.S. stock market, the outlet reported.
Plan Your Taxes
The bill can reduce your tax burden, especially if you use the standard deduction. Gammon explained how the new bill can add more money to your wallet.
“I would also look at your estimated 2025 taxes and adjust withholdings, if needed. The standard deductions moved for [couples who are married and filing jointly] from $30,000 to $31,500, or if you are single, it went from $15,000 to $15,750. This could lower your tax liability, where you can adjust your withholdings on your W-4 and free up extra monthly cash,” he said.
Seniors can also get a boosted tax deduction thanks to the bill. Seniors who are 65 or older can get an additional $6,000 tax deduction if their modified adjusted gross income is below $75,000. Married couples filing jointly can capitalize on the additional tax deduction if their combined modified adjusted gross income is below $150,000.
This additional tax deduction for seniors currently applies for the tax years 2025 to 2028.
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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