The Effects of Brexit on British Pound and Opportunities Derrived

Picture: funny photo

Leave vs Remain referendum turned out something that shocked many people. In fact in the expression of many was 'how the bloody hell did it happen', especially ones earning money in the UK and spending them abroad. In the first days after the results were concluded, pound dropped more than 12%, and still keeps tumbling.

If one lives in the UK and does not travel much, or spends much money abroad (e.g. by educating children somewhere else, or spending money on online sex with Eastern European girls), then the effect might not be feasible in the short run. But if you do spend your pounds abroad, I bet you start feeling the pain already. And unfortunately, the predictions for the future are not optimistic at all. Sterling will certainly manage to get back, however, it might take several months or even years to recover. Political decisions connected to Brexit need to be made first (no one knows yet exactly how Britain will be exiting), and they will be the cornerstones for the exchange rate.

Meanwhile, some young and mobile professionals I know who just got jobs in London start slowly regretting their decisions as many expect the Pound reach the level of Euro soon. And that means that even a somewhat nice starting salary of £ 32,000 will not be as good as a year ago, and by going to other European countries (e.g. Germany) or to the U.S. one could make significantly more.

On the other hand, if you are making money outside of the United Kingdom, the next couple of years could be a great opportunity to invest. For instance, it could be a good time to take a look at the property market.  Though, people who had money have probably already invested in the UK, now an opportunity opens for people with smaller budgets as well. London might be terribly expensive, but, for example, Manchester is growing fast and real estate prices are about 70% lower than in London. Might be a lovely chance to grow assets. 

Similar thing with education. Until the British government comes up with some restrictions for foreign students again (and they might), it is also a good opportunity to study in the kingdom. The price of education at top-tier universities in the UK was already lower than top-tier schools in the U.S or Australia, and after Brexit it will decrease in dollar amount due to exchange rate for the benefit of international students. Should be just enough to finish a two-year master’s degree 😉 

Whichever side you are on in the Brexit, keep calm and carry  on.