Since the Brexit vote, there’s been a lot of speculation over what the economy would look like once the UK exits the EU bloc in March 2019, especially if no deal is reached. Theresa May’s latest speech showing that an agreement is still far away has left many observers and analysts deeply worried. One thing is certain; the financial landscape could change drastically by the first of April 2019. Millenials will most likely be the hardest hit if things turn a lot worse than they are already. To ensure you are adequately prepared, here are 5 financial planning tips you can implement right away to ensure you are not taken unawares.
Implement stiffer budgeting
Times are different. Your budget should be different as well. This is not a time to continue living from paycheck to paycheck. Track your spending and figure out where you need to make cuts. When done properly, you can still live comfortably and may even be able to save money even if a recession hits post-brexit like many analysts are predicting.
Ramp up your savings over the next 6 months
If you have been saving, go over your accounts to ensure that you have at least three months of your average monthly income saved up already. If you are still a bit far off, look for ways to raise cash quickly. Some of the ways to raise money are weird but interesting. When you have made the money, use it all to increase your savings while continuing to live according to your stringent budget. If you have three months of pay saved up, you can weather any emergencies (such as job loss) that Brexit could bring for a while.
Ensure your investments are diversified
If you are an active UK-centric investor in the money markets, now is the time to take stock of your investments and ensure they are properly diversified. In fact, it may be best to reduce your exposure to the UK markets and look offshore. If you work with a fund management company, then there is likelihood that they have done this for you already. However, it doesn’t hurt to confirm. Ask them how a possible no-deal Brexit can affect your portfolio.
Stay away from risky investments
Now is not the time to take a bet on risky investments such as cryptocurrencies or investing in other forms of trading you don’t understand. In a booming economy, you can afford to have a few dead investments as you pursue that big killing but can you do it in the face of impending recession? If you must invest in such vehicles, don’t bet the house on them.
Stay close to professionals
From mortgage advisors to fund managers, the right professionals can help you prepare for possible financial complexities. Discuss your goals and fears with them and they can point you in the right direction.