It\u2019s more than just about making sure you are earning enough to meet your expected needs, though. Research from MoneySuperMarket suggests up to 15 per cent of Britons might run out of money<\/a> before their January pay day, and it can be tough to recover from that early setback if you don\u2019t have a plan in place<\/a>.<\/p>\n A thorough run-through of your money situation can make a big difference, and it doesn\u2019t need you to spend hours poring over receipts, bank accounts<\/a> and calculators either.<\/p>\n Here\u2019s a checklist of six things you should do, some of which can take only a few minutes but give you brilliant peace of mind.<\/p>\n Update your basic budget<\/p>\n First things first: you need to know exactly how much you\u2019ve got coming in and going out each month. Bank or finance apps will mostly tell you this pretty quickly now, but you might need to double-check where some expenses are assigned.<\/p>\n Whether it\u2019s through salary, benefits or other income, make sure you know how much lands in your main account and when. Then, if you\u2019re able, look back over your last few months of spending, tot up whether they are imperative costs (such as for housing and bills), regular expenses (food and other things you need), your discretionary spend (socialising, personal shopping, eating out and so on) or something else like savings.<\/p>\n First, the income number needs to be higher than the total expenses.<\/p>\n If it\u2019s not, reduce your outgoings immediately; raise your income if you\u2019re able.<\/p>\n Once the numbers balance the right way, you can look at where extra money can go. This task might take a little longer than the others, but it\u2019s the foundation of everything that comes after. For a more comprehensive look at how to effectively budget, look here<\/a>.<\/p>\n open image in gallery<\/p>\n (Getty Images\/iStockphoto)<\/p>\n Paying off your debt<\/p>\n So, you know how much comes in and how much goes out. The difference between those numbers is what helps you improve your financial resilience: the ability to absorb surprises when they crop up without overstretching or going into debt.<\/p>\n For those who have some money – even a little – left over after monthly spending, there are a few key things.<\/p>\n Get a free fractional share worth up to \u00a3100. Terms and conditions apply.<\/p>\n Go to website<\/a><\/p>\n ADVERTISEMENT<\/p>\n Get a free fractional share worth up to \u00a3100. Terms and conditions apply.<\/p>\n Go to website<\/a><\/p>\n ADVERTISEMENT<\/p>\n First is any high-interest debt. This could include credit cards for example, or loans that are not mortgages. Always check terms to ensure you won\u2019t be penalised for paying anything off earlier or faster, but the more you can contribute towards paying down any debt you owe, the better you\u2019ll be in the long run as you\u2019ll pay less interest on it.<\/p>\n Get your savings in order<\/p>\n It\u2019s easy to feel like most of your money is gone as soon as it lands in your bank, but it\u2019s vital that people put a little away each month.<\/p>\n Research from the Financial Conduct Authority (FCA) found a fifth of Brits (21 per cent) have less than \u00a31,000 they could get hold of in an emergency, while one in ten (10 per cent) have nothing saved at all. It\u2019s crucial to build this savings<\/a> safety buffer first before you do anything else with your spare cash – otherwise it\u2019s more likely you\u2019ll end up spiralling around, never having money to pay sudden expenses, and always feel like you\u2019re playing catch-up.<\/p>\n Money experts recommend eventually saving at least three months\u2019 worth of costs, and up to six months, depending on circumstances like your job or dependents.<\/p>\n You want a main easy access savings account first of all, and for many, the best product to use might be a cash ISA<\/a>: it\u2019s simply a normal savings account, which you will never pay any tax on the interest earnings.<\/p>\n Other people might want multiple accounts or \u201cpots\u201d to differentiate between emergency savings and cash dedicated toward specific things, like a holiday or house deposit, or even planning for Christmas 2026. Little amounts add up significantly<\/a> when given consistency and time.<\/p>\n Check how much you\u2019re already putting away and alter that according to your needs – or divert some towards other things.<\/p>\n If you\u2019re on universal credit, check out Help to Save<\/a>.<\/p>\n Check your pension<\/p>\n This won\u2019t take long at all: check maybe once a year on your current pension position and ensure you\u2019re on track.<\/p>\n For the state pension, here\u2019s everything you need to know<\/a>. You can check potential earnings, identify missing years and more on the government website.<\/p>\n For workplace pensions<\/a>, track down all your old ones – the forthcoming pension dashboard should make this a lot easier if you haven\u2019t already done it. Consider whether you can up your current salary sacrifice if you are on that scheme. Even an additional 1 per cent can make a massive difference over decades<\/a>, especially before the new tax on it comes into effect in 2029.<\/p>\n If you have personal pensions, check those too, and if you don\u2019t, consider whether you could set aside a little money to begin one this year, even if it\u2019s only a small amount each month. If you\u2019ve still got decades of work ahead of you, there\u2019s time for it to make a big impact in retirement.<\/p>\n open image in gallery<\/p>\n (Getty Images)<\/p>\n Is it time to invest?<\/p>\n Investing<\/a> will once again be a buzzword for Brits in 2026, and a big campaign is coming to raise awareness.<\/p>\n But here\u2019s the main deal: over the long term, you\u2019re more likely to earn bigger returns through investing in the stock market and other assets than you are through cash savings alone.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/01\/iStock-1324369882-(1).jpeg\")
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