An expert has shared simple checks people can make now to review spending, savings, subscriptions and financial goals for the months ahead.
An expert has shared simple checks people can make now to review spending, savings, subscriptions and financial goals for the months ahead.(Image: Getty Images)
Households are being urged to carry out a financial ‘spring clean’ to help spot wasted spending and make better use of their money this year. Research from the Building Societies Association suggests having at least £2,000 in savings can reduce the risk of falling behind on bills by around 60 per cent, yet many people still don’t have that safety net in place.
With the new tax year underway, Spring can be a useful point to review spending, savings and financial goals – especially as unused subscriptions, low-interest accounts and rising bills can quietly drain household budgets.
Derence Lee, Chief Finance Officer at Shepherds Friendly, has shared his top tips to help people take control of their finances.
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Review your income and outgoings
Looking closely at what comes in and goes out each month is the starting point for any financial reset.
Mr Lee said: “Understanding where your money goes each month is the first step to taking control of it. Take a closer look at your income and outgoings to get a clear picture of your overall financial position.
“Breaking expenses into categories can help you spot patterns, such as rising costs or areas where you’re spending more than expected. This can also support budgeting and longer-term planning.”
Check your emergency fund still fits your needs
Savings should be reviewed regularly to make sure they still reflect your current circumstances.
Mr Lee said: “As a general guide, emergency savings should cover around three to six months of essential expenses. It’s worth checking this regularly to make sure your fund still matches your situation.
“Changes to rent or mortgage costs, bills or family size can all affect how much you may need to set aside.”
Set reminders for upcoming financial renewals
Subscriptions and household bills can increase without people noticing.
Mr Lee said: “It can be easy for unused, duplicate or forgotten subscriptions to slip through the cracks. Even small price differences can add up over time, so it’s worth keeping track of renewal dates.
“It’s not just subscriptions either – insurance, broadband and energy costs can jump once introductory offers end. Setting reminders gives you time to shop around before you’re locked in.”
Consider whether your money could work harder long-term
Once short-term savings are in place, it may be worth reviewing longer-term options.
Mr Lee said: “It’s always worth looking at whether your money could be doing more for you in the long run. Even small changes, like reviewing where your money is held or adjusting how much you save, can make a difference over time.”
Review your ISA strategy for the new tax year
The start of the tax year is a key opportunity to check savings plans.
Mr Lee said: “It’s not just about how much you’re putting into an ISA, but whether the type you’re using still fits your goals.
“Cash ISAs typically offer lower risk but more modest returns, while stocks and shares ISAs can deliver higher growth over time, although values can go down as well as up.”
Take a look at your children’s savings or start saving for them
Parents may also want to review savings set aside for children.
Mr Lee said: “A Junior ISA is a useful way to build savings for your child’s future, whether that’s for education, a first home or other costs.
“Even small, regular contributions can add up over time and help children understand the value of saving.”
Revisit your financial goals for the year ahead
Spring can be a natural point to reassess priorities.
Mr Lee said: “It’s worth taking time to revisit your financial goals, whether that’s saving for a holiday, a home or something longer term.
“Checking in regularly can help make sure your money is going where it matters most.”
He added: “A financial spring clean can help people feel more organised, in control and better prepared for the months ahead.”
