The Brexit & Your Personal Finances

The Brexit and your personal finances

Over the last several days all the talk in the international news has been about Britain's decision to exit the European Union and as a result (putting the politics of it all aside) there seems to be a lot of financial uncertainty and the media is certainly capitalizing on things and making it sound like a mad frenzy - It's a classic case of "the sky is falling! run, run, run!". The pound is down, the stock markets are down as well and the general mood is grim. For many people there is a serious sense of panic but for a few others this is a time of great opportunity. 

So why should you care?

Well the thing with being part of a global economy is that in some way or form, whatever is impacting a major global economic player (like Britain for instance) is sure to impact the rest of the global economy in one way or the other over time.

And so below are a few tips on what you can do to stay sane amid all the madness:

First things first - Don't Panic

The world of money, like everything else in life has its ups and its downs and you don't want fear to cause you to make irrational decisions about your finances. Now is not the time to be cashing out your investments or spending frivolously. It's time to plan carefully and invest for the long term. In other words, stick to your long term plans which will most likely weather any storms and you'll more than likely come out just fine.

Focus on your personal economy

Before you worry about what's happening in the world, you need to worry about what's happening in your personal and family financial situation. This is how you should always make your financial decisions. So what should you be doing right now? Certainly not cashing out. Instead, you should be bulking up on your emergency fund, paying down consumer debt and sticking to your long term investing plans (retirement, kids college etc).

Educate yourself

Just because it seems like there's is a ton of opportunity around to invest (the pound is down, stock markets are down etc) and you can earn a quick buck does not mean you should do it without any caution. Do not, under any circumstance, invest your money in any stocks or funds that you do not understand. Do your research, learn as much as you can and understand where you are putting your money. And remember, investing is for the long term (Have I said this enough times yet?). 

Plan for the short term

Put any money you need in the short term (less than 5 years) in stable investment vehicles like certificates of deposits and savings accounts. This would be money you are saving for a home purchase or any other big ticket items you have coming up soon. This money should not be in the stock market right now.

Talk to a professional if needed

Sit down with a money coach, financial planner or financial advisor depending on your specific financial needs to craft out a plan if you feel you need help or guidance. Their job is to give you the right guidance and recommendations so you can make the best decisions for your money.

There's a lot of noise out there right now, and the media doesn't help things. What matters most is that you have a solid plan in place both for the short term and long term to ensure you can weather any storms. Your emergency fund is key and so is keeping your investments in place. Check in on their performance and rebalance your portfolio as needed and don't run off and cash them out without a plan because "the sky is falling".

Bola Onada Sokunbi

Bola Onada Sokunbi

Bola is a Certified Financial Educator, money coach, finance writer, business strategist, social media influencer and founder of Clever Girl Finance, a platform that empowers and educates women to make the best financial decisions for their current and future selves and to pursue their dreams of financial independence in order to live life on their own terms.