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.
[email protected] says
Thanks for the reminder to cancel subscriptions, as well as free trials that were about to charge me. Good points.
[email protected] says
I am attacking #3 this year and it has been going better than expected. We are not going to be debt free this year but are well on our way towards doing so.
Good stuff Zimmy! Let me know how it goes
Chris @ rplan says
Very good post – I’m all about new tax year resolutions instead of the calendar ones!
In terms of the ISA allowance, it’s either:
1) £5,760 in Cash and £5,760 in Stocks & Shares
2) £11,520 for Stocks and Shares ISAs only
Btw. hope you’re doing great – any wacky holiday plans in the near future? 😉
Hey buddy! I am all about the Stocks and Shares ISA this year – aiming to max out mine and my wife’s! Just been on an amazing holiday to Mexico actually – Check out my post on Cenotes and the one describing Angelita Cenote! Hope you are well!