Spring clean your finances

Laura Whateley, author of Money: A User’s Guide

I think of April as the chance for a fresh money start. The new tax year begins on 6 April and, after 12 months of the pandemic blowing up all of our spending priorities, it feels even more important to spring clean our personal finances.

Start by understanding what is going in and out of your bank accounts. Get a budgeting app to show all on one screen – I like Money Dashboard. Prune direct debits, look for cheaper broadband and insurance and switch your mobile to a Simonly deal (often better value). Claim all the tax breaks or benefits you’re entitled to; turn2us.org.uk can help.

Learn the interest rates on your debts and how much they cost you (harder than it sounds) and look at your credit file (try Clearscore). If you’re paying interest on a credit card or overdraft, apply for a 0% balance or money transfer card.

Have you got a cash emergency fund? Debt charities suggest a buffer of at least £1,000 to avoid borrowing for unexpected expenses. You could use an app like Chip or Yolt to top up savings automatically based on what you can afford, and a bank account like Starling that has a rounding-up feature, saving the difference on everything you buy into your rainy day pot.

If this is in place, open a stocks and shares Isa to invest money that you don’t need for the next five years or so. And don’t forget your pension. What is in it? Where’s it invested? Consider an ethical fund. Then pat yourself on the back!