4 Money Moves To Help Beat The Brexit Blues

The current situation in the U.K. surrounding Brexit is causing no shortage of problems in the British economy. The uncertainty surrounding the specifics of the exit agreement is mostly to blame, and the ultimate outcome is still very much in doubt. If there's anything about the situation that seems certain at this point, it's that families all over the UK are about to experience some budgetary pain as the costs of almost every necessity of living rises to compensate for the potential loss of goods coming from the EU's single market.

That reality means that one way or another, families in the UK are going to have a tough road ahead as they seek ways to make ends meet. One estimate already indicates families are already seeing up to £404 ($529) in additional yearly costs due to Brexit-induced inflation, and that's just the beginning. The good news is that there are plenty of ways to adjust spending to ride out what could be a lengthy economic adjustment period and emerge financially unscathed. For those looking for ways to do that, here are four smart money moves that can help your family survive the Brexit chaos.

1. Consider Remortgaging

For most families, mortgage payments constitute the largest single monthly living expense, especially because the U.K. is now coming off one of the longest prolonged periods of expansion in its housing market in a generation. Now, however, home prices are stagnating or even falling – which means homeowners may soon find themselves underwater with their current mortgages. The good news, if there is any, is that mortgage rates nationwide are still extremely competitive. That means homeowners still have the option of remortgaging to cut their monthly costs and hedge against any coming drop in their home's value.

2. Seek Fixed Rates For Energy Bills

One of the first things to do when looking for ways to eliminate budget uncertainties is to try to lock down rates on as many recurring household expenses as possible. Since energy costs are often a large part of most families' monthly expenses, consider locking in a fixed rate for a two-year term. Right now, there's a very good chance that prices in the UK energy market are going to rise significantly due to the nation's reliance on foreign energy sources, so whatever fixed rate you can secure now is going to look quite appealing in a few months' time. Best of all, free web resources like Simply Switch make comparing rates easy, and switching providers doesn't cost a thing.

3. Make Strategic Purchases

With so much uncertainty in the air over trade agreements and potential tariff increases, there's plenty of incentive for British families to consider accelerating their plans for certain purchases before costs begin to spike. That's especially true for big-ticket items like automobiles, which could see price increases of £1,500 or more on imported vehicles. Before that happens, any family with the means that expects to be in the market for a new car in the coming months should consider making the purchase as soon as possible to avoid unnecessary costs. The same thing goes for things like electronics and furniture, which are almost exclusively imported from overseas.

4. Consider Income-Generating Investments

When it comes down to it, there's no better strategy to deal with rising costs than to generate more income to cover your expenses. One way to do that is to take on a side job or try to negotiate a raise with your employer. If that's not possible, though, you're going to need to find a way to earn extra income using the money you already have. To do it, you should consult an investment advisor that can help you build a high-yield income investment portfolio. They'll consider your disposable income and your tolerance for risk to create a mix of investments that meet your needs for a reliable extra stream of income. In most cases, it's possible to earn many times the current interest rate you'd get with a conventional savings account, with very little additional risk.

Hang On Tight

Since nobody can yet know how the Brexit situation will resolve itself, the best thing to do is to take proactive steps like the ones mentioned above to plan for the worst possible outcomes. Those that do should remain on firm financial footing no matter what comes next. Also, if the doom-and-gloom economic prophecies turn out to be overblown, your family will still come out ahead in the long run. If that happens, you can use the money you've saved to take a nice holiday to celebrate your smart financial stewardship and breathe a sigh of relief when the uncertainty is over – and you'll deserve it, too.

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