HS2 programme to have greater financial impact

Even the best of plans can go awry, especially financial plans.

09:13 02 July 2013

Most of us know what it feels like to re-evaluate our banking due to unexpected financial circumstances. At the moment, the government is dealing with the news that the High Speed Rail programme (HS2) could cost significantly more than was initially expected.

Any time we face changes such as relocation, moving out of a parent’s home or purchasing our own, we usually know that even our best estimates will be insufficient to properly prepare us for the actual cost. Here are a few things you can try to minimize the financial impact of unexpected costs.

• Build up savings—the first and best thing to do in order to minimize the occurrence and effect of a financial crisis is to have money put away in savings. Even if you only put small amounts in an account, they will add up over time, so it’s important to begin as quickly as possible with something like a Cash ISA.

 

• Options—know your options when it comes to financial goals, but also to thwarting problems. Find out what resources might be available if you encounter a difficult situation so you’ll know exactly where to look if that time comes.

 

• Planning—when you know a major change is inevitable, try to plan ahead as much as possible. Talk to other people who have made the change, and research online to figure out what financial factors you might be overlooking. In this phase, other people who have recently gone through a similar change may be your best resource. They’ll be able to inform you of the odd costs they experienced so you can prepare.

 

• Software—use a good software programme to help you get the basic number down when you do your planning. Seeing everything in black and white can help you realize if there are financial costs you haven’t considered, or at least help you with a basic monetary expectation.