If you didn’t quite stick to your New Year’s resolution to sort out your finances, the good news is that you’ve been given a second chance. The 6th of April heralded the start of the new tax year, meaning you have another shot at organising your money, sorting out your credit cards and getting a fresh financial start.
If you are serious about sorting out your finances, saving money and making your money work for you, you can start by following these tips.
- Cancel subscriptions and ditch unnecessary expenses. Take a look through your Direct Debits and other regular payments and check whether you actually use the goods or services you are paying for. Things like gym memberships and magazine subscriptions are all big money-wasters if you don’t actually use or need them.
- Open an ISA. The start of the tax year means another great thing – that you have a new tax-free allowance of £5,760 which you can save in a cash ISA. The rates are great on cash ISAs (especially if you can lock your money away for a couple of years) and every penny of the interest you get to keep. This is a great way to make long-term savings go further.
- Deal with your debt. If you have debt, now is the time to deal with it. Take action by switching your debt to a balance transfer credit card. A quick credit card comparison will help you find one with a nice long 0% interest period, which will give you time to pay off what you owe without incurring any extra interest.
- Switch your current account. If you’ve had the same current account with the same provider for years, it is likely that you are on a rock-bottom interest rate. Just because it’s a current account, it doesn’t mean that you can make some interest on your money. Take a look at your current account, compare other accounts from other providers and see if switching could make you some extra money. There may even be a cash incentive or other reward for opening the new account.
- Check and improve your credit score. Go online and find a credit reference agency which will give you access to your credit report for free, usually as part of a trial period. Check your credit history and score and if what you find is not encouraging, take steps to improve your credit rating.