How does the Brexit vote affect your wallet?
After the recent EU referendum, a majority of Britain has decided not to be a part of Europe Union anymore. After leaving EU there are plenty of new rules and laws are going to be implemented, and what about your personal finances? Will you have to pay more or less for the eatables, travel, and holiday after the UK vote?
Does it mean you have to prepare for personal finances? So let’s talk about it how leaving EU going to make an impact on our wallet either it’s about holiday travel package or pension plans.
At the moment the situation is not ideal, people from around the world are entirely focused that how EU leaving will impact England. The current downfall of a pound is another horrible news for the British economy, but most of the calculation says it’s just a temporary fall, we hope pound will jump again when the dust settles.
Buying goods and services from other countries will become more expensive:
What does it mean when we say pound has dropped down to 10% which is really big fall in recent 30 years? If you are looking to buy something from another side by countries then be prepared to pay extra due to a lower value of sterling, ultimately this situation could lead to more inflation.
What about the cost of a holiday?
British have been involved in the passion of traveling all the time, now after leaving EU your holiday could be little costly due to the dropped down value of sterling.
David Cameroon claimed that family holiday would go up by £230, but nobody is pretty sure about this claim. One thing is clear that fall in the value of sterling will surely impact your overseas travel expenses. And be ready to pay more for flights, but on the other side IAG, the owner of British Airways, said UK exit from the EU would not affect its business.
EU caps on mobile roaming charges have been keeping costs down for mobile phone users but these will no longer apply.
It will be up to the UK government to decide whether they introduce their own legislation to stop mobile companies overcharging.
Are we going to earn less now?
Now there is no place for UK in the European Union anymore after the Brexit which is why unemployment is going to hit high, Treasury made a prediction that wages would fall by up to four percent. There is no guarantee in this prediction, in fact, time will decide either we are going to earn extra or low.
Perhaps, you have to pay more for importing cars from Europe and it could take longer than before. Still, we would say that cutting EU red tape could affect cars pricing up or down.
EU leaving of UK could also impact Euro and if it happens then changes will cancel out in the value of pound with Euro for travelers to Europe.
Interest rates might go up:
If interest rates go up, it will be great news for savers, who have seen low-interest rates limit returns for many years. Fall in the pound could threaten to push prices up faster than this and then Bank will raise interest rates.
“Most of the experts were leaning towards the fact that if Great Britain exited the European Union, that would probably force the Federal Reserve to pause a federal interest rate in July, which could keep things like mortgage rates and car loan rates lower for a longer period of time,” said Filer.
Many celebrated the referendum results, and British Prime Minister David Cameron announced that he will resign after Britons went to the polls the day before.
Comments are closed.