Brace yourself! Financial uncertainty unpacked

This year is likely to be a financially challenging one. The COVID pandemic, Brexit, and now the war in Ukraine have really shaken us all and squeezed our finances. And it’s not just large investors who are affected. Rising prices are impacting everyone, from pensioners to corporate businesses. The cost of living has risen sharply in the last few months, and you may feel the pinch as a self-employed person or small business. Employed people do not see their wages increase in line with costs, and your situation may be very similar.?

• You may already be paying more for goods and services but haven’t passed the increases on to your customers
• Your cash flow may have slowed to a trickle
• You may suffer from “shrinkflation”, whereby products and services you buy will be smaller but still cost the same or more. Think Walkers crisps or other packaged food – how many times have you said, “I’m sure these used to be bigger!”?
• You may have also found that demand for your products or services has been decreasing for a while

The Bank of England’s Financial Stability Report?says that global economic conditions have put pressure on the finances of both businesses and households.

So, how do we get through the next few months (or years) without living pay-check to pay-check?

Have courage and make a plan

1. It’s impossible to know precisely what will happen over the next few years, but we can make a good guess. Start by putting a plan in place to keep afloat and protect yourself against anything else that could impact your finances. Here are a few things you can do to look after your financial affairs in uncertain times: Take a good look at what you owe. This is the perfect time to reassess how much debt you have and renegotiate any repayments. Talk to your lender about the best course of action for keeping up with your commitments. Despite popular opinion, lenders do actually want you to stay afloat. In fact, they are obliged to give you advice on how to manage your payments.? Citizens Advice?is a great starting point too. They have lots of free resources to help you create a plan of action.
2. You don’t need a crystal ball to see your future. All you need is some tech or a piece of paper and pen to help you plan ahead. It doesn’t have to be complicated. Start by putting aside some money, however small, for emergencies. There’s nothing worse than having your car or van break down when you rely on it for deliveries, for example. Think about what’s important to you and set aside money to keep it going. Aim to have at least three months’ worth of business reserves as an emergency fund.
3. Make sure you and your family are financially resilient should you be unable to work. Financial protection will help if you or a family member aren’t able to earn any money for a while. Look into critical illness cover, life insurance, and income protection plans.?
4. Invest in your future. You may think this is impossible when you’re struggling with the cost of living?and your business is suffering, but there’s no reason why you can’t look into investing, even if you can’t start straight away. Investing is a great way to make your money work for you, and you can start with as little as a few pounds.

The app is here!

The SmartPurse Money School app has arrived in the?App Store! Packed with independent, jargon-free financial content, our beginner-friendly app gets you clued up on your finances so you can grow your money in a community supported by experts.?

We have an excellent course on budgeting that guides you through all your budgeting essentials. You’ll also be given practical tools to help you get on top of investing so you can future-proof your finances! Download the App

Summer Meets Money Challenge

Let's debunk the narrative that managing your finances is dull and can't be fun. That's why we?DARE?to?CHALLENGE?you: whoever combines the two (summer fun and money) most creatively wins one of the lush prizes we prepared.

Post the picture(s) on your Instagram or LinkedIn handles using the hashtag?#smartpursechallenge

If your profile is private, send the pics directly to our mailbox at?[email protected]?no later than 31 August 2022, where we will take a pre-selection of pictures for the finals.

On the platform Survey Legend, the audience can vote for their favourites. Pictures with the most love will receive one of our valuable prizes, and the winner will be announced on 14 September 2022.

Here comes the best part - prizes!

1st - 10th place: Exclusive annual access to our Money School worth ￡74.99

Extra goodies if you land?1st place: A professional photographer's picture taken for your CV and social media profiles (includes make-up, photoshoot and the final image) worth ￡750

T&C applies:

• Upon submission (i.e. by publication/sending it to us via email), ownership of photos transfers to Smartpurse GmbH, and we may use and publish them without any restrictions on our social media channels and for upcoming physical, digital or virtual events.
• SmartPurse employees may participate in the challenge but will not be eligible to win.

Let the summer games begin!?

New event – join now!

We have a brilliant event for you on 17th August.

Ilana Jankovitz of?Mindful Money Coaching?will join us for a FREE webinar. She’ll be talking about achieving a healthy money mindset and how to manage your money and gain confidence with all things financial.

Ilana’s unique approach begins with looking closely at our relationship with money and how we can improve it to make better financial decisions.

If you’re unsure of your relationship with money and want to discover your true path to success, don’t miss this hour with Ilana. Click here to register

Figure of the Week

63% of women struggle with a financial plan

SmartPurse’s study?on women’s financial wellbeing found that nearly two-thirds of those surveyed were being held back by their lack of practical knowledge of financial concepts and understanding of how to use investing tools to their advantage.

We all have unique financial demands, so we must know how to look after our financial health with a flexible plan that suits our individual needs.

There is so much advice out there that it can be hard to know where to start.?

The CEO and co-founder, Olga Miler, of SmartPurse says:

“Having the tools and knowledge to take action with investing is crucial to women’s overall wealth creation and the closing of stubborn retirement and wealth gaps.”

It’s never too early or too late to start! See how SmartPurse can help you with your financial plan.?Click here?for more!

Meet the expert – Julie Eddicott

Julie has been a financial advisor for over 30 years and believes in the power of giving bespoke advice to clients that are both inspirational and educating. She’s very hands-on too!

Her success lies in the relationships she builds with clients so she can help with goal setting and plans that suit the individual.

She’s passionate about educating all the family about their finances to help enhance their overall wellbeing.?

Julie says:

“We spend a lot of time and money investing in our minds and bodies, but what underpins us, whether we like it or not, is our financial stability.”

Money Inspiration

@smart.purse?

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(Always remember to consult an independent financial advisor for individualised investment advice.)

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