How to prepare your finances for a no-deal Brexit
29/08/2019 - Avanti
In the aftermath of Parliament being prorogued, and with just a few weeks until the Brexit deadline, Avanti look at how you can prepare for the prospect of a no-deal Brexit, and by prepare we do not mean stockpiling all of your favourite store cupboard essentials!
Get a Grip On Your Finances
If you haven’t already, it’s time to perform a financial health check on your domestic finances, look at your income and expenditure and draw up a budget for your personal finances. . Once you can see exactly where your money is going, you can start to account for it, see what essential Vs what is unnecessary and cut back.
Save What You Can
Any cutbacks you can make will mean savings, be strict, preparing for ‘bre-cession’ does not allow for frivolity. It’s easy to think that you will struggle to save anything between now and 31st October, but anything you can stow away for turbulent times even if it just helps to ride temporary increased living costs makes saving anything now a worthwhile exercise.
Do You Know What You Owe?
In addition to your income and general living costs, are you aware of your debts – everything from store cards to car finance? Do you have a grip on the repayment terms – if your answer is no, take time to familiarise yourself? In times of unpredictability knowledge and understanding will go a long way. Consider if moving to lower interest options or consolidating your debts are an option also – this will help you to see your outgoings clearly and mange things on a day to day basis.
What Steps To Help With Travel Plans?
Currently British citizens can enter the Schengen area countries with as little as one day validity remaining on your passport. In the aftermath of a no-deal Brexit though, the Government is advising that if you have less than 6 months validity on your passport, you may not be allowed to travel. Expect delays at airports so plan your journeys accordingly as border controls may tighten for British citizens. Currently when on holiday if you fall victim to a medical emergency you may use a European Health Insurance Card to access local medical services, but in a no-deal Brexit this is unlikely to be available unless another provision is to be made.
Why is this important to your finance?
The need for travel insurance is increasingly important and the cost of cover could also rise in line with the demand, never mind the exorbitant fees for emergency healthcare abroad if you fail to get cover ahead of travelling. In addition the value of the pound is likely to fall meaning that your Euros may cost substantially more than they did previously.
It remains to be seen if a no-deal Brexit could mean ‘bre-cession’ , but preparation no matter how small, could be the difference between surviving and thriving.
Boris Johnsons’ claims that the chances of a no deal Brexit are “a million to one”, but are you ready for the potential Halloween nightmare if this happens?
For modern accountancy with traditional values who can help move you and your business forward, let Avanti treat you to a no obligation advice meeting during these tricky times.
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