Brexit-proof your Finances
Purchasing home or car, making big investment in such political and economic instability can be unnerving.
For every consumer, investor and saver, Insurance group Royal London has put a six step plan to secure their finances against the instabilities.
1. Best to have a balance of savings and spendings
At this stage, there is no reason not to spend on our ‘wants’, but there are also no facts and assurances that we wouldn’t need the extra cash when it is time for the Divorce.
It is suggested by Royal London that, in the preparation to the uncertainty, it is best to have three to six month worth of income in savings. If this is the fact, then there is no reason to cut cost on your regular day spendings.
2. Review of expenses and spends
One way of saving on the big expenses is to switch from expensive mortgage to a cheaper plan given that you are close to the end of your current mortgage plan.
Option two could be having automatic energy switching enabled, to ensure that you are saving cost on your energy plan.
Lastly, petrol eats up penny by penny and makes up a big chunk of expenses. Make sure you are on top of the cheapest petrol offerings in your area.
3. Look into new savings possibilities
As the Bank of England preparing to increase the rates, consequently your card interest rates will be on the rise too. It is suggested by Royal London that being on easy access savings account is best rather than cheaper and lower rate offering old accounts.
4. Exchange your currency
The pound is no longer strong and independent currency against the euro in the events of past months’ Brexit doings. Royal London suggest to deal with the foreseeable exchange rate volatility by exchanging some pounds into euros for future trips and expenses in euros.
5. Wise investment
Typical investment tips we hear about ‘not having all the eggs in one basket’ is to be used during such economic uncertainties. Less adventurous and less risk-averse investors should keep their investments in bonds and cash in order to protect the investments from exchange rate swings says Royal London.
6. Look into your pensions account and take action
This comes back to the market volatility and it hits the pensions pot at the time when one wants to draw from them. If you relate to this, it could be the time to contact an adviser.
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