Three ways to prepare your finances for Brexit – Hargreaves Lansdown

Brexit headlines have been overshadowed by the pandemic in 2020. But with just days left to negotiate a deal – Brexit is back under the spotlight.

Nobody knows what will happen in the coming days, weeks or months. With so much uncertainty in the air, we look at three ways to ‘Brexit-proof’ your finances.

Save a penny for a rainy day

The Office for Budget Responsibility says a no-deal Brexit could be bad news for the economy. They think jobs are at risk.

No matter the outcome, it’s important to have a good savings plan.

Make sure you have instant access cash savings you can access if you need to. We suggest an emergency rainy-day pot around 3-6 months’ spending. Planning based on spending, rather than your income, means you’ll know all your outgoings will be covered.

Our expert financial adviser Bradley Clark says; “an emergency fund is there to cover unexpected costs like a broken boiler or car repairs. Three to six months’ worth of expenses is usually a good place to start, but you might want more depending on your circumstances”

Read more about Bradley’s Three Pots Rule saving tips

2. Don’t put all your eggs in one basket

It’s natural for UK investors to focus on investments in their home country. But we think it’s worth holding investments further afield too.

Holding investments across different areas around the globe can diversify your portfolio and help reduce
risk
. Diversification isn’t just about holding one fund or shares in a few different companies. It’s about spreading your money across a wide range of assets, sectors and geographies.

Even the best companies or fund managers go through a rough patch. By being truly diverse means you should always have some investments performing better than others.

Find out more about diversification

If you’re happy to build your own portfolio and need some ideas to help spread your investments more widely, take a look at the
Wealth Shortlist
. The funds chosen by our experts all do something quite different. It’s a good starting point to help you get well diversified. If you’re not sure which investments are right for you, speak to one of our
financial advisers
. They’ll be able to tailor a portfolio that suits you and your circumstances.

Investments can both rise and fall in value and you could get back less than you invest. We think you should only invest for the long term, that’s at least five years or longer.

3. Don’t skip your admin

Nobody has a looking glass, and we can’t predict what will happen come D-day. But here are two more tips to help beyond your savings and investments.

Need more help?

If you could do with an extra pair of hands with your financial planning and investments, it could help to speak to one of our expert
financial advisers
. They’ll be able to understand your priorities and create a tailor-made plan for a bright financial future.

Find out more about financial advice

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