Quick summary: Conducting a comprehensive financial review at the start of the new tax year enables UK households to reclaim control over their spending by identifying hidden costs such as forgotten subscriptions and high renewal rates. Establishing a robust emergency fund covering up to six months of expenses is a vital public policy recommendation, as families with significant savings are 60% less likely to fall behind on essential bills during economic shifts. Prioritising these proactive budgeting habits directly supports improved mental health and overall well being by reducing the chronic stress associated with financial uncertainty and ensuring long term goals remain achievable towards a more secure future.
With the new tax year underway since 6th April 2026, many UK households are reviewing their finances amid ongoing concerns about spending awareness, and savings buffers.
Forgotten subscriptions, low-interest savings pots, and missed renewal dates are small but costly oversights that can add up. Research shows that millions of UK adults do not fully track or understand their spending, making this an opportune time to take stock.
Derence Lee, Chief Finance Officer at mutual society Shepherds Friendly, has outlined key steps households can take to reset their finances.
Review your income and outgoings
Derence highlights that “understanding where your money goes each month is the first step to taking control of it.”
He adds: “Take a closer look at your income, and outgoings to get a clear picture of your overall financial position. This can help you see where money is going, identify regular commitments, and decide whether any changes could be made.”
Breaking expenses into categories and reviewing them regularly can help identify patterns such as rising costs or unexpected spending. This supports better budgeting, clearer savings goals and more informed long-term planning.
Check for subscription and renewal traps
Derence warns that “unused, duplicate, or forgotten subscriptions can slip through the cracks.”
Recent research suggests Brits could be wasting hundreds of pounds annually on unused or duplicate services.
“It can be easy for unused, duplicate, or forgotten subscriptions to slip through the cracks. Even small price differences can add up over time, so it’s worth keeping track of renewal dates to make sure things do not auto-renew.”
He also notes that rising costs are not limited to subscriptions: “It’s not just subscription renewals that could be catching people off guard. Insurance, broadband, and energy costs can jump up once introductory offers end.”
Setting reminders or using budgeting apps can give households time to compare deals before costs increase.
Review your emergency fund
Derence advises that emergency savings should “cover around 3–6 months of essential expenses.”
Research from the University of Bristol’s Personal Finance Research Centre, commissioned by the Building Societies Association, found that households with at least £2,000 in savings are around 60% less likely to fall behind on bills than those with little or no savings.
“As a general guide, emergency savings should cover around 3–6 months of essential expenses. It’s worth looking at this regularly to make sure your emergency fund still matches your current household situation. Things like rent, mortgage, bills, or family size may have changed, affecting how much you need to set aside,” he explains.
Check in on your ISA strategy
With the new tax year in place, Derence says it is important to assess whether current savings vehicles still align with financial goals.
“The new tax year is a good time to check in on your ISA strategy. It’s not just about how much you’re putting in, but also whether the type of ISA you’re still using fits your goals.”
He explains that cash ISAs offer lower risk but more modest returns, while stocks and shares ISAs provide potential for higher growth, alongside the possibility of losses.
“Think about things like how soon you might need access to your money and how you feel about market ups and downs. That may help you decide how different types of ISAs might work together as part of your wider plan.”
Consider children’s savings
For families, Derence suggests reviewing existing junior ISAs or opening one if none is in place.
“A Junior ISA is a great way to start building up savings for your children’s future needs, whether that’s for a first home, university or something else. Small, regular contributions can really add up over time, and it’s a good way to help children learn the value of saving from an early age.”
Revisit your financial goals
Derence says seasonal change offers a natural opportunity to reset priorities.
“Spring is a natural time for a fresh start. It’s worth taking a moment to revisit your priorities, whether that’s saving for a holiday, a house deposit, or something further down the line. Checking in regularly can help you stay on track and make sure your money is going where it matters most.”
He adds: “A financial spring clean can help you feel more organised, in control, and prepared for the months ahead.”
Looking ahead
Once short-term savings and emergency funds are in place, households may wish to consider longer-term strategies.
“It’s always worth looking at whether your money could be doing more for you in the long run. Even small changes, like reviewing where your money is sitting or adjusting how much you’re putting away, can make a real difference over time.”
A financial spring clean can help households better understand their spending, identify areas for improvement and align their finances with their goals for the year ahead.