Whilst the true extent of the results of the referendum remain to be seen, there’s no doubt that the Brexit decision is having an effect on our lives with each new announcement. The pound has fallen, and the Bank of England have indicated they expect the economy to slow and inflation to rise during 2017. As we live through each twist of this portion of history, there’s one way in which we can reduce a little of the stress of the unknown; a sensible budget plan.
We are in the middle of what military strategists call a phony war. We have plenty of posturing and people talking strategy but we’re still pretty much in the same place we were in the day before the 23rd of June vote. Having said that, there are core questions that many ordinary people in Britain are asking:
- How will it really affect me and my family personally?
- Is my job at risk if we don’t get the right trade agreement with Europe?
- Is my money going to be worth less?
- Should I put my plans for a new washing machine, TV, home extension on hold?
- How much should I be saving to help me get over any bumpy period as we transition to a nation outside of the EU?
The sensible thing to do is to make sure you have the budget planning in place that gets you through any tough times that might come about because of Brexit. The worst thing you can do is pretend that, because nothing has happened immediately, all those potential pitfalls of leaving the EU are unlikely to come to pass.
Explore the What Ifs
Even if you are a very positive person, it’s important to explore what happens if X or Y happens once true Brexit cuts in. Is your job likely to be at risk? What would happen if you or a partner lost theirs? How long would you be able to cope for? What bills would you need to cover? Is it time to save extra money just in case?
With the recent spat between Tescos and Unilever about putting up the price of various products, there’s also the issue that life may well become more expensive over the next couple of years. That means you’ll have to be a little more frugal in what you buy at the supermarket and make sure that you can afford the things you need.
If you have savings plans or pensions, these may be effected for a time by Brexit and you may also want to put more in to be sure of getting a good return. You might want to look at your mortgage, if you have one, and decide that it’s better to change to a fixed-rate to protect you during the change. If you’re planning a holiday, the falling pound could mean that you need to save more for spending money abroad.
Better Budget Planning for Brexit
- List your priorities and what you need to cover if things start to get tough.
- Put down your incomings and outgoings as fully as possible so that you know where you stand.
- Look for places where you can save money and get an emergency fund in place.
Using our budget planner is a good idea, particularly as we get deeper into Brexit. Not only does it allow you to have a clear idea about your weekly, monthly and yearly spend, it can help you save money and prepare yourself properly for any future hurdles that may come along. Hopefully the transition post-Brexit will go smoothly but there’s certainly no harm in being prepared.