What would prompt you to review your finances?

What makes you take a close look at your finances? Chances are that you don’t often wake up feeling like today’s the day. Instead, there’s probably some trigger that makes it a good idea.

For example, research by Aviva has found that nearly four in ten (39%) people review their finances after getting a pay rise of bonus.

This was followed by:

• interest rates changing - 35%
• the tax year ending - 34%
• the start of a new calendar year - 33%

Figures also showed that more than a quarter of parents (27%) are prompted to look at their finances by the back-to-school period.

Where do I start?

The idea of reviewing your finances might seem a bit daunting and overwhelming at first.

But the first step is actually quite straightforward and can make a real difference to your life.

And that’s creating a household budget.

If you know exactly how much money you’ve got coming in, you can look closely at where it’s going.

How much is going on essential expenses like rent, childcare and energy bills?

And how much are you spending on non-essentials?

For instance:

• are you paying for subscriptions you’ve forgotten about or don’t use?
• are you paying over the odds for utilities like broadband when you could get a better deal elsewhere?
• are the costs of small but regular expenses, like a daily coffee, mounting up?

Once you know where your cash is going, you’ll be in a better position to:

• avoid overspending
• free up money for savings and essential expenses
• not need to rely on credit
• prepare for unexpected costs without panic

Check out our guide on how to create a budget so you can get started straight away.

If you know what’s coming in and going out, you can make sure that you’re living within your means.

And that can help you move forwards with confidence, certainty and a sense of control over your life.