Keep calm, and Brexit proof your finances

2 min reading

The big, bad B-word. The Great British divider. Yes, Brexit. We’ve reached the point where the one unifying feature is the collective headache we are all experiencing because of it.

Add to this a slowing global economy and you can forgive people for feeling a little timid about their finances right now. Whether you believe Brexit will prove to be a blessing or a curse to your finances, there are steps every investor and saver can take to minimize their exposure to uncertainty, irrespective of how our exit from the European Union pans out.

Here are five steps we recommend.

1.Now’s the time for a proper budget

From food to finances, Brexit could potentially see costs rise in the UK due to factors such as increased tariffs and red tape. Without a budget, it’s simply not possible to know where your money is going. What’s possible to cut back, and what’s out of the question. A budget that shows your monthly incomings and outgoings is the first step to gaining control of your finances. It helps to have all your savings and investment in one place. A Fineco account does just this, giving you the perfect overview.

2.Don’t get caught out by foreign currency rates

If you’re a business traveler, or anyone that does a lot of travelling, you’ll already be aware of the potential for eye watering commission when buying foreign currency. The pound has weakened considerably since the Brexit vote, and there’s likely to be more currency fluctuations ahead. This is where a multi-currency account comes in handy. Having an account that can hold the four major currencies – GBP, EUR, USD and CHF – will mean that you preserve the real purchasing power of your money.For trips to Europe, Fineco can offer you a card in EUR meaning you can withdraw cash abroad from ATMs without incurring any additional fees. For big trips, there’s also the option to raise your cash limit on your card and withdraw up to £5,000 at a time or make large purchases of up to £10,000.

3.Don’t put all your nest eggs in one basket

If you’re concerned about Brexit’s impact on your investments, you might want to move your money away from companies exposed to Brexit related risks. The first rule of investment is, after all, to spread your risk. There are huge benefits in looking further afield (both in terms of spreading risk and maximizing returns) during times of uncertainty or volatility. Diversification, with investments across the globe, is the best way to smooth out any ups and downs. A Fineco account is the ideal portal for investing your money around the world. Within your account, we provide access to thousands of UK and international stocks and ETFs on more than 26 global markets, in real time.

4.Review your fees and charges

No one wants to pay for things they shouldn’t have to - and in uncertain times controlling costs is a comfort. Review your investments to make sure you’re restricting fees as much as possible. With Fineco, there’s no minimum deposit and no custodial or admin fees. You can also withdraw cash in Euro zone with a EUR debit card at no additional charge, and investments start at a flat fee of £3.95 per order.

5.Don’t panic

Brexit could have an impact on your finances. The key is to avoid making any knee-jerk decisions or falling prey to those who capitalise on the current uncertainty. If you are in a position to keep your money invested over the long term, this is probably the best bet.