2. Switch any debts to lower rates and pay off the most expensive
Short-term debt on personal loans and credit cards can be expensive and it is a good idea to switch these debts to a lower rate if you can, and focus on paying off those debts with the highest rates first. Consolidating your debts can help to reduce your monthly debt outgoings.
3. Start an emergency fund
Any money released as a result of paying off a debt can be saved to help form an emergency savings fund. Consumers wanting to earn the best rates should avoid keeping this money in a high street bank as this could earn next to nothing; find the top deals by looking beyond the high street.
4. Saving into a pension is free money
Unless they have opted out, most of those working should now all be auto-enrolled into an employer’s pension scheme. This means that all employees will have money from their employer and themselves being paid into a pension pot.
5. Check your family is protected
If you or a family member were unable to work, what would the impact be on your family and finances? Income protection and life insurance are there to take away the stress of worrying about money at what is likely to be a hugely stressful time.
6. Releasing income as retirement approaches
Those approaching retirement should also consider a personal finance review. At this time, the focus may be on how to release income in the most tax-efficient way or how to release equity with a lifetime mortgage.
You can read these steps in more detail online, and check out our guides for extra support across a range of financial considerations.