SHAPING UP YOUR FINANCES Check your car insurance

If Christmas spending has left your savings looking light, get your finances in order with these moneysaving tweaks, says Michelle Nightingale

If you’re using your car less as a result of Covid-19, it’s worth contacting your insurer to see if your premium could be reduced. Both Admiral and Aviva suggested earlier in the year that they may lower customers’ premiums if they get in touch about reduced mileage. A welcome move, but check that your insurer won’t charge a fee to amend your policy, which could outweigh the benefit.

Trim down your direct debits

Nowadays online banking and new paperless systems mean many of us find it hard to keep an eye on our finances. While our accounts have become more accessible on smartphones and tablets, it’s easy to just give them a cursory glance or, worse, forget to check them at all!

Set aside some time each month to analyse your accounts and, in particular, check for any old direct debits. Researchers claim the average Brit wastes around £40 every month on forgotten direct debits – that’s an astonishing £30,000

over a lifetime!

Separate your savings

Having a linked savings account makes it tempting to dip into your money on a regular basis. A safer option is to open a separate savings account, preferably at a different bank or building society, where you can access your cash if needed but not quite so readily.

If you have a healthy amount of savings, then consider splitting your money across more than one account. This works well if you know you’ll need access to a certain amount in the near future, but want to place the rest in a fixed-rate account for a better return.

Avoid impulse spending

As simple as it sounds, giving every purchase you make your full consideration is one of the best ways to save money. Shop around for the best deals, check for discount codes by doing a quick Google search and join mailing lists to claim new customer discounts. Lastly, before every purchase ask yourself, ‘Do I really need this?’ You might be surprised how often the answer is no!