How You Might Benefit Financially From Brexit

Many saw the value of their investments drop sharply at the announcement of Brexit. This was exacerbated by traders incorrectly predicting a Remain outcome from the vote.

However, many individuals turned a negative into a positive. With shares at the lowest price possible, it was the time to buy, buy, buy! Buying at a low price means that you will increase the yield of dividend paying shares and increase your profit from other shares.

Even today, selling shares you bought on 23rd June or just after, would see a very healthy return.

Shares have not fully recovered yet, so some people are still keen to buy. The UK haven't separated from Europe just yet though. With the expectation that the UK will officially start the separation process from Europe (also known as Article 50) in March, it is possible UK shares will see another steep decrease and there will be a second opportunity for individuals to benefit from this uncertain political situation.

As always with investments, nobody can be certain how the market will progress, so it is still possible that you would lose any money invested. Only ever invest money you can afford to lose.

With the announcement of Brexit, the Bank of England later made an announcement on a cut in interest rates to just 0.25% on 4th August 2016.

Many saw this as a blow to their personal finances. However, looking at this from another perspective, an interest rate cut means mortgage interest rates are likely to follow suit. Even just a couple of months later, cheaper mortgage deals are easy to find.

Even if you're currently trapped in a fixed rate mortgage, you may be financially better off to pay the get-out charge and switch to a new, lower deal.

But before you rush out to your mortgage lender right away, keep in mind that the Bank of England meet again in November. Some believe this meeting may result in a further decrease in interest rates, and therefore, even better mortgage deals may be on the horizon. If you can wait until the results of this meeting, do it.

Despite areas where people may benefit financially from benefit, there are also areas where people may find themselves worse off.

These include:

• Shopping - some retailers and manufacturers have suggested that their prices may need to be increased to counteract the fall in the pound.
• Savings - while lower interest rates benefit mortgages, savers will see a reduction in the benefits they see from their savings accounts. Many savings accounts are now offering an interest rate that is below the rate of inflation. Shop around for the best rates and don't be loyal to your bank - this never pays off.
• Holidays/Currency - with the weaker pound, holidays abroad will increase in price, along with the cost of currency.

The UK has already started to see a glimpse into the effects of the vote on Europe, with the recent stand off between a major supermarket and an international manufacturer over price increases sparking what is widely and affectionately known as 'Marmitegate' (please research this, it's both funny and an informative insight into one of the UK's most loved food stuffs).

Whatever your personal view on the UK referendum, there are both positives and negatives for personal finances.

Many people only see the negatives, but if you can see the positives as well, you should be able to balance out the monetary effects of the UK's exit from Europe. Just remember: for every negative situation, someone must be benefiting; could that include you too?

If you have any further suggestions on how you can benefit financially from Brexit, please feel free to share your ideas below in the comments.