Monday, 24 October 2016

Surviving Brexit : For Generation X and Millennials

As Brexit looks ever more inevitable, it's pretty imperative that as a member of GenX and almost a millennial - I was born in 1979. I have to make sure I'm in the best position to deal with the next twenty years. Hopefully we will avoid a recession but most analysts understand our growth will not be what it could have been. Some of the things I have done, considered or been suggested to me are below. Not all of it is relevant to me, and may not be to you, but still thought worth noting it all down in one place.

Some of this might look a little simple, and I'm happy to take any other advice in the comments.

BASIC

Reduce fixed costs: Switch energy accounts, pay off credit card debt or if you can't, switch to 0% credit cards.

Renegotiate what you can : Out of fixed rate on your mortgage? Think about re-mortgaging with as long a fix as you can tolerate - ask about terms such as whether you can port the mortgage (move it to another house) or add to it if you want to move to a bigger house - which may be important for growing families.

Renting - what about housesharing if you aren't already?

Reduce variable costs: Downshift your grocery bill, take sandwiches to work. Yes, forgo the posh coffee, but the odd lipstick is OK if that's your thing.

INTERMEDIATE

Pension: Increase contributions to your pension - it appears with flat-lining growth, the boomers may have pulled another fast one on the generations behind them. Not only do we have defined contributions in the main, but seems we may not get as much out of these pensions due to 2 decades of lost growth that we thought we were going to have. The answer : put more in your pension.

God knows what will happen to the state pension. Another post, another day.

Invest in a Stocks and Shares ISA and think about investing in funds aboard. There are quite a few good ones with low dealing fees - more details here

Brush up on your GCSE maths : You will be able to check what you will actually pay for your car finance or determine the best mortgage i.e. interest rate and fee.


ADVANCED

Keep your money in $. May be more difficult than it looks, tho I am informed some banks offer accounts in USD for net creditors. I haven't tried this yet but looking into it.

More as I come across it.....

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