Keeping your finances on track for the new financial year

Chris Henderson, Savings and Payments Director at Tesco Bank, said: “Money plays a really important role in our lives. It enables us to do the things we want but it can also be a source of stress, particularly when it comes to bigger financial decisions or pressures. Getting to know your money and understanding what comes in and what goes out, is the first step to taking control of your finances. This will give you the knowledge you need to take the best next steps, whether it’s preparing a monthly budget, setting your own savings goals, or seeking help and support if you need it.”

1. Review your finances

It’s never too late to make new resolutions and April, the start of the financial year, is as good a time as any. Take a step back and review your income against your outgoings to get a clear picture of your finances. Remember to include any debt repayments and check for any recent increases in household bills. This will help you map out how much you are spending each month on essentials, extras, or ‘nice-to-haves’. You can then consider any changes you need to make and use a planner or a budgeting app to track how you get on.

2. Think about your financial goals

A large part of getting in shape financially is thinking about your long- and short-term goals and what you need to do to achieve them. Do you want to build a pot for Christmas 2025? What’s planned for the summer holidays? Or longer term, do you want to move house, or make a larger purchase like a new car?  Encouragingly, our research shows 62% of people have a savings goal in place, and this can be a real motivator to put away a little bit each month. You can also try different budgeting techniques to see what works best for you. Our research found that a tenth (11%) of consumers have ‘loud-budgeted’ to help with their savings ambitions, sharing their goals with friends and family to help keep them on track.

3. Prioritise paying any debts you have

Just under half (46%) of Brits have some form of unsecured debt, and spending on a credit card or taking out a loan to help with more expensive purchases is the reality for many. Staying on top of how much you have borrowed and managing your monthly repayments is key to being in control. If your debt starts to cause you stress or anxiety, it’s time to look at how you manage your debt and seek help.

If you have multiple debts, you can explore options like a debt consolidation loan which combines debt to make repayments simpler. If you’re worried, consider speaking to your bank for support or seek the help of a financial charity.

4. Build an emergency fund

An emergency fund is your financial safety blanket and it should be in everyone’s list of savings goals. It can help you cover the costs of sudden financial emergencies such as a broken-down car or a leaky roof. The amount needed in an emergency pot is different for everyone but broadly you should aim to have the equivalent of three to six months’ salary saved. This won’t be possible for everyone but start small, save regularly, and you can quickly build up a savings pot you can fall back on.

5. Talk to someone if you need help

Financial difficulties such as managing debt or meeting household bills can be hard to face alone     . Our research revealed that nearly two-thirds (62%) of adults wouldn’t actively talk to friends and family about debt. It’s important to know you don’t need to face it alone and being open with loved ones or friends can help. If you don’t feel comfortable talking to a loved one, there are lots of charities that offer support and advice such as Citizens Advice or StepChange.

Research conducted by Opinium Research on behalf of Tesco Bank. Sample was 2,000 UK adults (aged 18+). Fieldwork was undertaken 20^th September – 23^rd September 2024. All data has been weighted to be representative of the UK population.