2016 has been one of the most significant years of the past decade. A lot of important international events have taken place in the past few months that have changed global perceptions and influenced the decision-making powers of the common individual. For people living in the UK, 2016 will be known as the year when the local population voted to opt out of the European Union. The historic referendum voted in favour of “Leave” by the population of the UK, and despite calls by major politicians for another referendum, the government decided to push forward with the decision of the common man.
However, as soon as the results of the referendum were announced, a number of major changes took place. Stocks plummeted throughout the country, and the value of the Pound Sterling fell drastically in comparison to other currencies. Most importantly, interest rates took a tumble as well, clouting the lending sector as a result. As David Cameron, the Prime Minister of the United Kingdom, announced his retirement, most people were waiting with baited breath to see how the situation would unfold.
Previously, if you wanted to save money, the best option was to find a bank that offered a decent interest rate, and open a savings account. That’s not such a wise idea now, as interest rates have plummeted all over the country. As such, you need to understand how to manage your money in a better way; you can no longer just leave it in a savings account and let the bankers handle it.
Download a Mobile Money Management Application
One of the first things that you need to do is to download a mobile money management application to track your expenditures. If you have a current account in any bank, you should link the mobile application directly to your bank account. This way, the app will automatically update all transactions as soon as they are made in real-time. Most people are unable to budget their finances properly, they spend more than they should, and are unable to keep track of where most of their money is going.
The best thing about learning how to manage your money through an application is that it allows you to stay on target. Looking to save £500 each month? You can set a reminder and create an artificial budget through the application, allowing you to adhere to your targets and set aside a small amount of money each month. Ideally, most reputable banks in the UK have their own applications designed for users.
Diversify Your Portfolio
Gone are the days when you could just keep your money in the bank and let it grow until the day you retired. If you really want to maximise your savings, now is the time to diversify your portfolio. It might be a wise idea to put some money in stocks at the moment, as the market has been very volatile and stock prices are falling. It’s the perfect time to buy good shares, since it’s expected that the market will rise within the next few months. You stand to make a decent return on your investment!