Here is a checklist to help you review your personal finance after Brexit.
Avoid increasing your personal debt unless investing in cost reduction strategies. See 5 and 6 below. This includes credit cards, mortgages and other personal loans. If your income comes under pressure in coming months this will help you ride out the storm.
|2||Cash is king
If your present income, take home pay, exceeds your outgoings, save it. You may need to call on these reserves.
|3||Review personal expenditure
We all have “gym membership” or similar subscriptions that we hardly ever use; cancel them and save the savings.
|4||Multiple income streams
Those of us who depend on a single income source to meet our family’s needs, and have a yen to develop other sources of income, should dust off their plans. Having all your eggs in one financial basket may not serve your best interests in the coming months.
|5||Invest to save costs at home
Consider green energy opportunities, loft, floor or wall insulation grants (while they are available) and reduce your carbon footprint. If you can afford it, consider solar options for heating and power generation. This will help you to reduce your monthly outgoings.
|6||Invest to save transport costs
Again, consider “green” opportunities. A fully electric vehicle may not be practicable, but what about hybrid cars?
|7||Reduce costs of employment
One of the major costs you may have is the cost of commuting from home to work. If this is the case, negotiate with your employer to work from home whenever possible. Even if this is just one day a week it will make a contribution.
Now may not be the best time to consider moving house. The immediate financial uncertainty created by the Brexit vote may suppress demand for property. If so, you may be buying into a falling market and run the risk of negative equity – your mortgage being greater than your home’s market value.
|9||Review your savings and pensions strategies
Call your financial advisor to see if you need to change your investment strategies.
|10||Take other professional advice
This booklet is a clear statement of intent – we want our clients to ride-out the period of uncertainty that we may be facing. Whatever our political beliefs, or the assertions of those who portend to lead us, it is our endeavors, the steps that we take in the coming weeks, that will make a difference. Actions will always speak louder than words. Take advice. We are ready to help and committed to your long term success.
Image from Flick by Jeff Djevdet.