Todays post is a collaborative one from the Lending Works about post-Brexit finances. Are you feeling a bit wobbly about it all? I must admit, I am. So much uncertainty is unsettling, it’s difficult to know what to think. About anything.
Taking care of your post-Brexit finances
It’s still early days, but it does feel as though the referendum, and the fallout thereafter, has led us down a very uncertain path. The world feels like a very different place to what it was last week, and it is very unsettling for us as individuals and families. In fact, in some cases the outcome is even dividing families!
What we want to know from here is: What should we do to protect ourselves, and ensure that any negative impacts as a result of Brexit are minimised? It’s still very early days, and of course everyone’s situation is very different. But here are some ideas which can help you get the ball rolling, and set the right tone for you as you look to secure your future…
Keep calm and carry on
Things like recessions, bank runs and other problems in the economy are often a direct result of consumer behaviour, and are self-fulfilling. If people believe they need to stop buying things, investing in the future or that banks are going to run out of money, they tend to actually happen as a direct result of this change of attitude. So we all have our role to play in this – let’s keep calm, carry on as usual, and do our bit for the British economy.
Get saving properly
Households in the UK have fuelled a worrying trend in which they are collectively spending £50 billion more than they earn. Are we living above our means? You may not be one of the people who form part of this alarming statistic, but either way, the time to protect ourselves is now. Ask yourself where you can trim fat off the monthly budget? How can I squirrel away that extra £100 a month? As has become clear, we can rely on our government to look after us less and less, so it’s time to take matters into our own hands.
Find a home for your money
Saving is definitely the difficult bit. But it shouldn’t be the end of the line. Have a real think about where you want to be putting your money at a time like this. Money in the bank is guaranteed, as it is in places like Cash ISAs. But interest rates are appalling, so won’t give you much mileage. There are a whole range of other ISAs out there, each with their own set of benefits. One that probably stands out is the Innovative Finance ISA, which offers tax-free returns potentially in excess of 6 per cent – although it does carry a degree of risk.
There may be difficult times ahead. There also may not. All that is guaranteed is uncertainty, and especially for those with dependents, it can be a stressful thing which eats away at you. But media hysteria, and even that among friends, can make certain things out to be more than they are. Some people will be directly affected by what is going on, but many of us won’t to a great extent. So let’s all try not to lose sight of the more important things in life. Family. Friends. Laughter.
Life really does go on, and it’s all too brief as well. It may even help to stay away from the news for a while. That’s not to ignore everything that’s going on. But best to keep a clear head so that you and everyone you love can crack on with everyday life, with a smile on your faces, while taking small steps to ensure your long-term financial security.
So, don’t know about you, I’m digging out the meal plan and making sure we’re in a good place to deal with whatever comes along next. I’ve got a few good recipes to post, and a couple of ideas simmering away. What about you – have you got any kind of plan?