Have you been keeping up with all the Brexit news? Well, there's a lot to take in, and it's actually pretty hard to figure out what it could mean for you as an individual. Here's a quick breakdown of the key points...
Your job & income
According to one report, the number of job vacancies advertised online had fallen by almost half in the week after the referendum. This is a concern as it suggests that unemployment rates could rise.
However, if you already have a job, there's no evidence to suggest that you should be worried about losing it just yet. But don't be surprised if your employer puts a recruitment freeze in place or if your salary doesn't increase: The Treasury have estimated that wages could be as much as 4% lower over the coming years.
Benefits
Economic growth in the UK is predicted to be a bit slower outside of the EU, which means that the government's income might fall. As almost 28% of all government spending is spent on the welfare budget (a big chunk is pension payments), it stands to reason that there might be further cuts to benefits. This could make it harder to get assistance or tax credits if you need them.
The price of groceries
The value of the pound has been decreasing, which makes it more expensive for us to import goods into our country. As a result, the food in our shopping baskets is probably going to get more expensive.
Other goods, such as technological products, might become more expensive too: Dell has already increased its prices for business customers, and OnePlus have said that they're going to rise the price of one of their smartphone models for consumers by £20 as a result of the Brexit decision.
Fuel prices
Due to the fact that wholesale fuel prices are quoted in dollars (and the value of the pound has decreased against the dollar) we're likely to see fuel get more expensive. However, it was already getting dearer and dearer before the referendum, so we'll have to wait and see what happens.
House prices
Reports on house prices won't be finalised until the end of summer, so it's hard to say what's happening. However, estate agents are already saying that they've noticed a fall in inquiries - it appears that some people have been reluctant to buy or sell in such uncertain times.
In London and East Anglia, homeowners have been cutting their price of their home by as much as 10% to secure a sale, and some developers have been pausing their building projects to see what effect Brexit could have on their investment. While this isn't helpful for property developers and current homeowners, it might make property cheaper all over the country... something that first-time buyers will be glad to see.
Mortgages
The good news about Brexit is that the Bank of England base rate is expected to fall from its current level of 0.5% to around 0.25% - a saving that ought to be passed on to borrowers. For those of us with mortgages, it means that monthly repayments could get a little bit cheaper.
Overall, Brexit doesn't look like great news for individual finances. However, it's important to remember that the vote to leave has only just happened, and we're likely to go through a period of financial uncertainty that will affect all of us in different ways. It's impossible to predict exactly what will happen, so in the mean time you should make sensible decisions about your finances wherever you can.
If you need a loan, you can still borrow money. A question like "how much can I get for my car" is still worth asking - log books loans are still available and it's just as easy to borrow money today as it was a few months ago.
