Brexit and Your Finances – Things You Need to Consider

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Were you surprised by the vote of Brexit? I know I was. I was expecting – and hoping – we would stay a part of the EU, as I personally see many benefits. I respect the decision that’s been made, even if it’s not what I wanted, and am now focusing my energy to best preparing for my financial future now that we head into uncertain waters.

The Pound has Dropped and We Don’t Know How Far it Will Go

I work and earn in Great British Pound and I’ve noticed a considerable decrease in value since the vote to leave the EU. This has impacted me considerably because I travel a lot, so the value of the pound compared to other currencies is something that makes my holidays more expensive. This is a short term consequence, but I’m worried Brexit could lead to declining exchange rates in the pound against the Euro over the long term, making holidays and international trades more expensive for British people for years to come.

Health Insurance Costs
During the time in the EU, Britain has had a public health care agreement in place with many countries within Europe, including some of our favourite places to holiday and retire: Spain, France, Italy and Germany. British expats living in these countries will likely be forced to pay for private insurance policies which are not cheap. Furthermore, the implications of a lower valued pound would mean that for elder pensioners living overseas that need part time or full time in-home carers, the cost of care may become expensive and unaffordable. For those remaining to stay in Britain, hopefully the financial effects on healthcare will be more muted.

Impact on Every Day Expenses
If the pound continues to fall, imported goods could become considerably more expensive, to the point it may not be viable for families to continue buying many of the goods they were used to having in their home. Big ticket items could also increase in price such as electronics and cars. This could result in many British people, especially those who are in middle class families, finding themselves living a lifestyle less comfortable than before the vote for Brexit. This is, of course, only speculation at this point, but judging by how the pound has performed since the news of Brexit, it is quite likely.

The truth is knowing that these three consequences are possible is a great way to allow yourself to prepare. If you’re living overseas and want to transfer some of your pound balances to other currencies, now could be a good time for you to do so. Speak to a financial adviser before making any considerable changes, but if you do want to transfer money international, consider using a service like Currencies Direct to save on fees and to get the best rate possible.

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Derek

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