Following Britain’s vote to exit the European Union, economies around the world have suffered. While the U.K. has definitely suffered the most, with the pound dropping substantially, the ripple effect has hit many countries. Furthermore, there’s no sign that things are going to be returning to normal any time soon. If you feel like your personal finances are spinning out of control and you’re wondering what you can do to get control back, here are a few different tips that can help you no matter how you voted.
Savings Rates Have Fallen
Unfortunately, savings rates have dropped, but despite this, more households have done their best to save more money. According to information gathered by Scottish Friendly, a savings and Isa provider, households that regularly put money back every month has risen slightly to 51.5%. While they may no longer be enjoying the rates they once were, they are still making an attempt. In fact, over a tenth of all households surveyed have said they plan on trying to save more money each month than they did before due to Brexit and how it is affecting the economy.
Manage Your Money Better
Putting more into savings may help you deal with a large expense, but what if you’re living month to month and don’t have much extra to put away? With some increases in costs and inflation, many are concerned that their monthly costs are going to rise. These individuals are now taking a long, hard look at their monthly budgets and trying to see what, if anything, can be cut out. By using budgeting tools and apps for their phones and tablets, budgeting has never been easier. You can use one of these apps to track your expenditures for a month in order to see where you’re spending more money than you should be.
One area you may be surprised at is how much you spend eating at restaurants. Many people spend more on take away and dining out than they realise. However, once they see the total amount per month, it’s usually quite easy to bring this spending under control.
The Housing Market May Provide Surprising Savings
Experts expect the U.K. housing market to weaken this year and next year, with the price growth dropping to about 1.25% in 2017. This means it may be the perfect time to purchase a home if you have the money set aside to do so. While it may seem like an odd time to be spending a large amount of money when the country is hitting a recession, you may be able to save a good amount by moving from a flat into a home. You will also start building up equity in the property and, once the market recovers, may be able to sell for much more than you invested. Again, you can look at a number of different budgeting apps to see if you can afford a mortgage payment and if you would actually save anything from purchasing a home.