5 essential tips on becoming recession proof as UK economy drops

by | Feb 17, 2024

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  • 47% of Brits are heading into 2024 feeling worried about money
  • 30% of Brits avoid checking their bank account due to their bank balance
  • Credit management Lowell company to share 5 essential tips on how to become recession proof

With the UK falling into a recession after soaring interest rates and rising living costs,  47% of Brits admitted they are heading into 2024 feeling worried about money.

Following a new nationwide survey revealing that nearly a third of UK adults are avoiding checking their bank account due to their financial situation, credit management company Lowell are encouraging Brits to face their finances head on, and set themselves up for positive habits in the new year.

Encouragingly, there are now 85.3 million views under the TikTok hashtag #recessionproof, with Brits trying to find ways of getting on top of the current economy.

 
 

How do Brits feel when talking about money?

Talking about money can bring up varying emotions. With there still being a stigma around discussing finance 17% of people surveyed said that they felt uncomfortable talking about money, with a quarter of Brits (25%) sharing talking about money makes them feel anxious, stressed or ashamed.

However, when overcoming the stigma talking about money can help people take control of their situation with one in five (20%) feeling empowered or in control when talking about their financial situation. Interestingly, men (31%) are more likely to feel comfortable talking about their financial situation than women (19%) overall.

 
 

As 22% of Brits said that they avoided seeking financial advice from a professional, beginning the conversation with yourself can be a great launch point for getting to grips with your finances. With this in mind, financial experts at Lowell have shared five things to ask yourself to in order to start becoming recession proof:

1. What are my long-term financial goals?

Rather than starting with number crunching, the first point of action should be to determine your long-term financial goals. This might be clearing your debt or saving for your retirement. Having something to focus on, will make it easier to save each month, as you know what you’re working towards. 

 
 

2. What is stopping me from achieving my long-term financial goals?

When determining your financial goals, it’s important to predict any potential hurdles to achieving your goals. This could be everything from outlying debt, to concerns your money issues could be affecting your mental health. From there, you can identify ways to overcome these barriers.

3. How can I set up a budget that works for me?

 
 

Once you know where you stand and what you hope to accomplish, pick a budgeting system that works for you. For example, for a more flexible strategy the 50/30/20 system, which splits your after-tax income across three major categories: 50% goes to necessities, 30% to wants, and 20% to savings and debt repayment.

4. How can I further educate myself on financial wellness?

As one in five (20%) do not feel confident in their knowledge of financial products, services and terms, education is a key part of financial health. From Reddit threads to financial blogs, there are several free online resources for financial education. Make sure to also read up on key financial calendar dates from energy cap rises, to tax deadlines.

 
 

5. Am I prioritising my spending?

Start by allocating enough money for fixed expenses to ensure you have food, a roof over your head, utilities are paid, and transport is covered. If you have any debts make sure you are selecting priority debts to pay off such as council tax and rent. 

You can find further information on the data, and advice on how to get your finances in order for 2024 here: https://www.lowell.co.uk/about-us/lowells-blog/wellbeing/how-to-talk-to-yourself-about-money/

 
 

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