Reviewing your current finances :Cross Stitch – Money, tax and benefits

Keeping a regular eye on your personal finances will help you make the most of your money. Reviewing things like your bank accounts, mortgage, pension and savings will also help make sure they’re still right for you. It will also alert you early to potential financial problems.

It’s a good idea to check regularly whether your income is:

• enough to leave you with money to spare
• only just enough to cover your spending
• not enough to cover your spending, so you’ve got a shortfall

You can use the online budget calculator on the independent Money Advice Service website to check your outgoings against your income.

If you’ve got money to spare, look for savings and investments options that are suitable for your circumstances and will give you a better return.

If you have a shortfall you’ll need to take action to reduce your outgoings and/or increase your income. If you’re worried about debts, you can get free advice.

Even if you feel you’re in control of your finances, it’s a good idea to look regularly at your savings, borrowings and investments to make sure you’re getting the best deals available.

Look at things like:

• how much it costs you to borrow money on your mortgage, loans, overdrafts, credit and store cards
• how well your savings and investments are doing (including things like savings schemes and pensions)
• the cost of insurance to protect your income, your property and investments