What Does 2017 Have In Store For Your Finances?
Making firm predictions can be a mug’s game – and even the ‘experts’ love to agree to disagree. But from the plethora of New Year round-ups and analysis there is a growing consensus about some of the trends that will dominate 2017 that everybody should take seriously.
Household debt has risen to its highest level since just after the financial crash in 2008, with debts racked up on credit cards or through bank loans rising sharply.
With wages expected to be pretty flat, more and more people will need to find other ways to supplement their income to make ends meet – which is a major problem Money Making Champion is trying to help solve.
A fall in the value of the pound after the Brexit vote is starting to put pressure on import prices and this trend is likely to continue in 2017 – which means the price of the weekly shop or a holiday abroad could be set to rise. Fuel prices have also hit recent highs on rising oil prices and falling sterling.
There were signs that savings rates were perking up ever so slightly at the end of 2016 – with rates on fixed savings bonds edging up. The consensus is rates will rise slightly in 2017 but are unlikely to keep pace with inflation.
Here is a useful summary of: 2017 Saving Rate Predictions
With savings rates in the doldrums, a lot of people who do have savings are willing to take bigger risks on shares and bonds
Analysts are split on stock market growth prospects. Many are still positive. This is even after some significant recent rises, spurred in the UK by Brexit and the falling value of the pound and in the US by Trump’s expansionist policies designed to stimulate economic growth.
Others fear that bond prices could struggle if interest rates rise and that markets could face some headwinds if Trump disappoints and political uncertainty continues in Europe.
Here are some of the things that the FT and This is Money are highlighting that you need to watch out for:
Let’s face it, any normal person must have given up predicting house prices by now as in many locations they have surely lost any touch with economic reality. So it is hardly surprising that forecasts vary from steady rises to doom and gloom price crashes.
The Telegraph highlights property price concerns raised by the Organisation for Economic Co-operation and Development.
Whilst the BBC rounds up some of the latest house price predictions.
In summary, if the housing market was a weather forecast, the consensus would be some clouds potentially gathering in London and parts of the South East, but with patches of brightness elsewhere.
So where does that leave us in 2017? Having digested the experts’ views and, despite the inevitable wide range of forecasts, it does appear there is an important consensus.
Household budgets are going to come under increasing pressure this year. And the reality is there is only so much money you can save from offers, discounts and vouchers. To really make a material difference to our finances we need to unearth new ways to increase our income.
That could be earning a bit (or a lot) extra in our spare time, renting or selling the things we own, using our skills, taking the plunge and going it alone…and many more ways besides.
That is why Money Making Champion’s mission in 2017 is to provide regular top tips and ideas on how to increase your income, improve your finances and to help you successfully navigate the financial choppy waters ahead.