FEATURE: How 2022 has changed people’s financial plans

2022 has been a difficult year financially for people in the UK.

Fuel prices have hit record levels, energy costs are spiralling, and inflation has reached a 40-year high.

These factors have helped create a cost-of-living crisis that will impact most families in the UK.

Below, we explore how 2022 has changed people’s financial plans and how you can protect yourself from inflation.

Major economic factors of 2022
2022 has been shaped by soaring inflation – and it’s created a worrying financial climate for many.

This has partly been caused by the lingering effects of the pandemic.

Just as the world was looking to recover from the economic cost of covid-19, the Russian invasion of Ukraine has slowed growth and driven inflation.

This is because many resources and exports from both countries have diminished during the conflict, raising the price of equivalent goods from across the world.

It’s likely that this war will continue to be the dominating economic factor in 2022 and it’ll impact the global economy for years to come.

How to protect yourself from inflation
As a result of the financial problems of 2022, it’s worth looking for ways to insulate yourself from inflation.

If you have the money, investing in a home is a good way to look after your money.

You’ll probably need to hold your property for a few years to realise the benefits, but this is a good long-term way of protecting yourself from inflation.

Equally, by carefully investing in stocks, you also have the chance of growing your money to at least keep up with the rate of inflation.

These strategies do require expert knowledge, though.

If you feel like you need professional support to help you reach your economic goals, it could be worth seeking out financial planning advice from experts.

Outlook for 2023
But will the economic climate improve in 2023?

Well, there’s still the threat of the pandemic to contend with.

It’s difficult to project what future Covid variants will be, but Omicron has the potential to limit economic growth in 2023.

Similarly, the problems caused by the Russian invasion of Ukraine seem here to stay.

And inflation will not likely be under control soon either.

Governments face many economic policy challenges to try and tackle inflation.

As a result, you’ll have to prepare financial plans to cope with economic uncertainty for at least the next few years.

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