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What The Double Dip Recession Means for the UK

1 May 2012 One Comment

You would have thought that it is about time the UK had some good news and indeed something positive to talk about.  Aside from the Queens Jubilee and the Royal Wedding, the news has been full of negativity surrounding the recession in the UK and the impact that this has had on our ability to survive financially.  Therefore the news this month that the UK has officially returned to a recession is met with sighs and a scratching of heads by the British public.

Two consecutive quarters of negative growth means that the UK is officially in a double dip recession following the first recession in 2009. There is not one single person who has avoided the effect of the first recession, therefore what can we expect following the news of this second recession?

The first thing to note is that we are still suffering the after effects of the first recession in that in the UK, every month over the last few years, it has become progressively more expensive to heat up your home, put food on your table and fill your car with petrol.  Unemployment has been rising and there are fewer and fewer jobs available for people to apply for.  Therefore it may seem like nothing will change as we are so used to these factors.

It does however have an impact on what you need to do in order to survive this latest news as it does cultivate a situation of ‘survival of the fittest.’  It is advisable to build a ‘pot’ of money equivalent to six months wages in an accessible savings account so that if you are made redundant for whatever reason, you will have resources available so that you can continue to meet your outgoings.

It is worth revisiting your finances to make sure that every utility bill is the cheapest possible and that your outgoings are as refined as possible. If there is any way that you can possibly reduce your debts, this too is recommended.  This means that you should consider consolidating loans etc. to ensure that your outgoings are as small as possible.  Avoid signing up to any long term debts be it a credit card or even a mobile phone as your future is uncertain.

In summary, whilst you may not feel any immediate effects of the double dip recession, unfortunately it does mean that the situation is very serious.  The negative impact of redundancies and increased cost of living is here to stay at least for the next couple of years.  Therefore the best thing any UK citizen can do is take steps to make themselves recession proof by building up savings, reducing outgoings and rationalising outstanding debt.

Guest Post: Laura Susstance is a content writer from London, UK. as well as actively contributing to guest blog posts she also writes on her own website: http://fastpaydayloansreview.com

One Comment »

  • Julie said:

    Thanks for sharing your thoughts, Laura. As the social media manager for Nutmeg, a soon-to-launch online investment manager in the UK, I believe that saving and investing are important things to do whether the economy is in recession or not. While the value of investments can go up or down at any time, the hope is that over the long-term the results will be positive.