A six-step plan to help you get your finances in order this year

The start of a new year often offers opportunities for renewal in a number of ways – and more and more people are turning to their financial to ensure everything goes smoothly in the coming months.

It’s not just about making sure your income is enough to meet your anticipated needs, though. Research from MoneySuperMarket suggests up to 15% of Brits could run out of money money Recovering from early setbacks ahead of January payday can be difficult If you haven’t made plans yet.

A thorough review of your finances can make a big difference, and it doesn’t require you to spend hours poring over receipts. bank account and calculator.

Here is a list of six things you should do, some of which may only take a few minutes but can give you peace of mind.

Update your base budget

First things first: you need to know exactly how much money is coming in and out each month. Banks or financial apps will now mostly be quick to tell you this, but you may want to double-check where some fees are allocated.

Whether it’s through salary, benefits or other income, make sure you know how much money is in your main account and when it goes into it. Then, if you can, look back at your expenses over the past few months and work out whether they were essential expenses (like housing and bills), regular expenses (food and other items you need), your discretionary expenses (socializing, personal shopping, eating out, etc.) or other expenses (such as savings).

First, the revenue number needs to be higher than total expenses.

If not, immediately reduce your spending; if you can, increase your income.

Once the numbers are balanced the right way, you can look at where the extra money can be spent. This task may take longer than others, but it is the foundation for everything that follows. for more To learn more about how to budget effectively, look here.

pay off your debt

So you know how much is coming in and how much is going out. The difference between these numbers can help you improve your financial resiliency: the ability to absorb the unexpected when unexpected events arise without overstressing or falling into debt.

For those of you who have some money (even a little) left over after your monthly expenses, there are a few key things to know.

The first is any high-interest debt. This might include, for example, a credit card or a non-mortgage loan. Be sure to check the terms to make sure you won’t be penalized for paying anything off earlier or faster, but the more you contribute to paying off the debt you owe, the better off you’ll be in the long run as you’ll pay less interest.

Keep your savings organized

It’s easy to feel like most of your money is gone as soon as it’s deposited in the bank, but it’s crucial that people save a little each month.

Research from the Financial Conduct Authority (FCA) found that one in five Britons (21%) have less than £1,000 to call on in an emergency, while one in 10 (10%) have no savings at all. It is crucial to build this savings Before you do anything else with your spare money, start with a safety cushion—otherwise you’re more likely to end up in a hole, never having money to cover sudden expenses, and always feeling like you’re playing catch-up.

Financial experts recommend ending up saving at least three months and up to six months worth, depending on your circumstances, such as your job or dependents.

First, you need a main savings account that is easy to use, and for many people the best product to use may be cash ISA: This is just a regular savings account and you will never pay any tax on the interest income.

Others may need multiple accounts or “funds” to differentiate between emergency savings and cash earmarked for specific things, such as holidays or a house deposit, or even plans for Christmas 2026. Small amounts add up to a lot When given consistency and time.

Check how much you have stored away and change it according to your needs – or move some to other things.

If you have Universal Credit, View help save.

Check your pension

This shouldn’t take long at all: maybe check your current pension position once a year and make sure you’re on track.

For state pensions, Here’s everything you need to know. You can check potential earnings, determine missing years, and more on the government website.

for workplace pensionkeep track of all your old pensions – if you haven’t done so already, the upcoming Pensions Dashboard should make this much easier. If you’re on the scheme, consider whether you can increase your current salary sacrifice. Even an extra 1% can make a huge difference in just a few decadesespecially before the new taxes take effect in 2029.

If you have a personal pension, check that too, and if not, consider whether you can start setting aside a little money this year, even if it’s just a small amount each month. If you still have a few decades of work ahead of you, you have time to make a big impact on your retirement.

Is it time to invest?

invest 2026 is set to become a buzzword among Brits once again, with a major campaign to raise awareness about to happen.

But here’s the main thing: Over the long term, you’re more likely to earn greater returns by investing in the stock market and other assets than by just saving cash.

You first need to make sure your savings plan is running smoothly, and You can set up automatic investing If you don’t want to do anything yourself – like a pension, in fact.

If you haven’t used up your annual allowance, using a Stocks and Shares ISA is the most tax-efficient way to invest.

Mortgage Check

Finally, if you’re a homeowner, it’s worth checking your mortgage. Interest rates have fallen significantly over the past year, with around 1.8 million term transactions expected to close in 2026.

You can lock in your deal early, usually during the last six months of the term. Consider fees, terms, whether you can overpay and other details, as well as overall interest rates, and if possible, let a broker help you decide on the best product.

If your transaction lasts longer, you may still consider can you pay more If yours allows, and whether you would be better off doing this, or investing, putting your spare money into a pension or something else entirely.