Money MOT

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From advice service MoneyHelper


Many of us face financial strain after the holiday season, with increased spending on gifts and festivities leading to anxiety about bills and debt.

A significant number of people report needing to cut back on spending in January, with an average reduction of around £212 to regain financial stability.

That means the early part of the year is an ideal time to give your finances an MOT, an important process for assessing your financial health and making sure your money is working effectively.

Here are eight top tips from MoneyHelper:

  1. Create a financial checklist: Start the year by organising your financial documents, including bank statements, bills, and subscriptions. This really helps in understanding accurately your financial situation.
  2. Set clear goals: Write down your short-term and long-term financial goals, such as saving for a holiday, paying off debt, or even planning for the next Christmas.
  3. Review subscriptions: Cancel any unused subscriptions or memberships to save money. This quick win can help ease financial pressure.
  4. Track your spending: Keep a detailed record of your income and expenses to identify areas where you can cut back. Understand what you earn and where your money goes. This includes all sources of income, not just your salary. This can help you balance your budget effectively.
  5. Seek support: If financial stress becomes overwhelming, consider talking to family, a trusted friend or MoneyHelper. Discussing your concerns can provide relief and new perspectives.
  6. Check your tax position: Ensure you are being taxed correctly and that your tax code is accurate. It is the responsibility of individuals to check their tax code to ensure they are paying the correct amount of tax.
  7. Review your protection: Assess your insurance policies and ensure they cover your needs, especially if you've had recent life changes.
  8. Evaluate your retirement savings: Check in on your pension to see if your retirement savings are on track and adjust your plans as necessary.


More from MoneyHelper

Benefits calculator – their free online tool helps you keep track of your money and suggests ways to improve your finances.

Budgeting - this is probably the most powerful tool you have in your financial toolkit to improve your financial wellbeing. Making money go further is a goal most of us would like to achieve, and there are loads of ways of doing it, including using MoneyHelper's budget planner. The free online tool helps you keep track of your money, plus suggests ways to improve your finances.

Bill prioritiser - managing bills and payments can feel overwhelming. The bill prioritiser can show you which bills to tackle first.

Dealing with debt - have you missed more than one debt payment? Speaking to a trained and experienced debt adviser about your situation can help you see what the best decision for you might be.


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