Finance analysts are warning of the significant effect that a no deal Brexit will have on household finances and encouraging individuals to prepare for the worst. Predictions of a further slowing of economic growth, further unemployment, and interest rates remaining low look more and more likely to come to fruition as a Brexit deal becomes more elusive.
A no deal Brexit could see the pound, and the UK stock market take a dip, leading to volatility. How this affects individuals will vary, however, experts have recommended that some basic preparation may stand you in good stead.
Set Your Household Budget
If you haven’t done so already, now is the time to sit down and work out your household budget. However, don’t fail to leave a bit of room for changes to costs and emergencies in order to ensure you stay on track. A thorough investigation into household spending can often identify areas where you can cut back to free up some cash each month.
Diversify Your Investments
This is particularly important if you are currently holding all UK investments. Casting your gaze further afield can help reduce your risk by spreading your assets across a wider range of sectors and countries.
Have Access to Savings
You should consider having monthly direct debits in place that can help build a little nest egg that you can access should the need arise. Most experts will recommend three to six months worth of expenses tucked away, however, in cases where this is not achievable, putting away anything you can afford is better than nothing.
Consider Fixed Rates For Any Additional Savings
Any savings you have over and above the three to six months worth of expenses would be better served in a fixed rate savings account. Fixed rates often pay higher interest rates in exchange for having your cash locked away for a fixed period of time. This will effectively protect you from any future falls in the market.