Things may be tough right now — but don’t get mad, get informed

The financial future can feel overwhelming, but there are more reasons to be hopeful than you might think (Picture: Supplied)

Reasons to be hopeful? You’ve got to be joking! I’ll admit, it’s a brave proposal for my first Metro money column, but bear with.

A gloomy Spring Statement from the Chancellor laid the groundwork for cuts to sickness benefits. The Office for Budget Responsibility halved its projections for economic growth this year. We’ve limped our way to the end of ‘awful April’ when almost every bill you can think of is rocketing – and it’s not like May sees them all go back down again. Stealth taxes are kicking in too, even for pensioners, while not-so-stealth taxes could well rise in the autumn.

The icing on the cake? We’ve also now got Trump. His on-off tariffs (not to mention suggestions he planned to sack the chief of the Federal Reserve – now, thankfully, denied) haven’t just sent shockwaves through politics, they have also spooked stock markets, which has a knock-on effect for our pensions and investments.

If all this is freaking you out, you’re not alone. I’ve been a financial journalist for nearly 15 years, and the only other time I can remember such turmoil was during the Covid era. It’s unnerving that, five years on, the outlook for our personal finances feels hardly more settled.

I’m not just a money wonk though. I’m a woman in my late 30s trying to lead a normal life. At some point I would like to move on from my city flat, buy a house with my partner and start a family. But I’m honestly not sure if we can afford it.

The only other time I can remember such turmoil was during Covid (Picture: Supplied)

We are two professionals on decent incomes who both own flats in London. We feel lucky to be in the position we’re in. Maybe not in comparison to previous generations, but certainly within our own.

Will our luck continue? That’s the thought that lands in my brain at 3am when I need to go to the loo thanks to late night tea (I never learn) and can’t get back to sleep. Whether it’s ongoing uncertainty about mortgage rates or the all too terrifying certainty of childcare costs, I sometimes wonder if taking that next step would mean embarking on a Trump-esque economic experiment in my own life – it can feel like a fine line between believing it will work out in a ‘terrific, beautiful way, folks,’ and committing an insane act of self-sabotage.

And yet we persevere. You’re likely reading this because you’re trying to make a better life for yourself and the people you love. It’s what we do; press on with life despite not having everything worked out. This is what I tell myself during my 3am post-widdle wobble.

There are no guarantees when it comes to interest rates, investment returns, house prices or taxes, so we just have to do our best to build up our resilience.

Learning to roll with the punches

To reach the goal of future-proofing your finances, I recommend starting with smart cutbacks. First off, try my 1-2-3 challenge: find one big thing you can give up, two you can do less frequently and three you could do more cheaply.

For example, the thing you give up could be alcohol, the two things you do less could be going out for food and takeaway coffee and the three things you could do more cheaply are clothes shopping, the weekly shop and holidays. Watch the savings mount up.

Try my 1-2-3 challenge (Picture: Supplied)

Next, consider zero per cent balance transfer deals, which can be your friend if you use them to pay off your credit card balance. Use them wisely, starting with the most expensive debts. Saving has made a serious comeback amid stock market turmoil, competitive rates and the chancellor’s threat to shrink the tax-free cash ISA allowance. Make the most of good deals while they last – open an easy-access cash ISA and set up a regular standing order from your main account.

Don’t rush into a remortgaging decision if you don’t have to, as rates could be heading downwards. Consider using some of your savings to overpay your mortgage, as this will put you in a stronger position when you come to secure a new deal.

Finally, keep a cool head when it comes to your pension or investments. These are long-term endeavours, and if your portfolio is diversified and balanced, you should be able to ride out the storm.

I’m not pretending I’m going to trigger some major vibe shift here. Things are tough, and they could well get tougher. But my motto is ‘don’t get mad, get informed’.

It will be my job in this monthly column to help you understand what’s going on, to be clear-eyed but constructive. Because sometimes you may have a few more options – and reasons to be hopeful – than you think.

Iona Bain is an award-winning financial journalist, broadcaster and author of Own It! and Spare Change

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