"The British vote has cut off one of our wings, as it were, but we're still flying." Juncker
The Great Britain has decided to leave EU, choosing exiting over remaining. While latest polls show that a number of voters would like to change their vote if given a second chance, what's done is done.
Even though the decision is not legally binding, with Cameron's resignation most experts do not see Britain going for another referendum or against the result. BBC comments,
it would be seen as political suicide to go against the will of the people as expressed in a referendum.
So gear up, and let's see what this change is going to change.
1. Less Foreign Holidays for Most of Us
Foreign holidays are going to be expensive, very expensive. The Pound is already falling, and according to the latest reports things are going to get even worse for the royal currency. It's basic maths, if a buffet was $40 earlier, you only had to spend £25, but for the same meal you will not have to spend £30. Sounds confusing?
Prices abroad are not going to change, and your employer is not going to increase your pay to keep up with the change. So what happens? When you go to the currency exchange you get less money than you earlier did, making your foreign holidays expensive.
2. Less Food, Less Picnics, Less of Everything
Time to go back to basic economics. What happens when your currency falls? Imports become expensive and inflation, which currently stands at 0.5%, increases. Yes, the next batch of your favourite imported item would require you to pay more than you did the last time you bought it.
The government is not going to subsidize things for you. It can, but it won't. End result? You have the same amount of money but you will be able to buy fewer items, having to prioritize what's more important, which also means that while necessities may remain...luxuries will have to go.
3. Say Bye to Your Dream House
Do not be too surprised if you hear rumblings about the Bank of England increasing interest rates. This is one of the easiest ways to combat inflation, if our books are to be believed. But what does it mean for the common person? Higher interest rates mean borrowing from banks become more expensive. So if you have been planning to take a loan to buy your dream house, do the maths again.
4. You May Lose Your Job
Hate me already, but the truth is truth. England will become an expensive country to live and do business in, and this is not something that businesses like. Do not be too surprised if your current employers begin 'brexit cut' to meet the growing expenses.
A number of expert predict a fall in jobs and the overall economy with reduced investments. Also, you may have to do without the extra money that was promised by the Leave campaign. I suppose it will come later, but don't expect to receive it right away.
5. Investments are Going to Suffer
No investment is safe. Stocks have already started to fall and the real estate investments are also expected to suffer. Tamir Davies predicts,
the property market will be affected just as the economy is effected - so if Brexit has a negative effect on the economy then you can bet property prices will suffer the same drop.
In addition to this, your immigration status will remain locked for the next two year. And not just this, other countries may also be affected by Brexit. Several other stock exchanges also saw a hit when the results came out earlier last week. Will anything good come out of it? Naysayers may say 'no' but some experts believe that the decision may turn out to be beneficial in the long run. But what to do till then? Based on Cameron's speech, and I quote,
I will do everything I can as Prime Minister to steady the ship over the coming weeks and months, but I do not think it would be right for me to try to be the captain that steers our country to its next destination.
so far the government has no plan in place to counter the bad that is going to occur. But I hope that you do.
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