As spring begins to bloom and the days grow longer and brighter, there’s a renewed sense of energy and optimism in the air. It’s a season of fresh starts and a time to clear out the clutter left behind by winter.

Beyond tidying up your home, spring can also be the perfect time to turn your attention to your finances.

So, with the new tax year ahead and the sun (hopefully) peeping through the clouds, read on to discover four smart tips for spring cleaning your finances this Easter.

1. Update your budget

When tidying up your finances, a budget review is a good place to start.

Begin by evaluating your monthly income alongside your average expenses. Fixed costs – like mortgage repayments, rent, and utilities – are usually non-negotiable, so treat them as constants, but do shop around if you think you could find better energy deals.

Then take a closer look at your variable expenses, such as dining out, groceries, entertainment, and subscriptions. These are often the areas where your budget may be stretched more than you realise and where small adjustments can make a big difference.

You may spot regular payments that no longer serve you, or patterns of overspending in certain categories like dining out, streaming services, or impulse buys.

Taking time to review your subscriptions can also free up extra cash that might be better used elsewhere. Auto-renewals, in particular, can catch you off guard, especially if they charge for a full year.

Once you have a clearer picture of your financial habits, you’ll be better positioned to fine-tune your budget. This could mean setting realistic spending limits, identifying areas for savings, or reallocating funds to support your long-term goals.

2. Deal with your debts

Once you’ve reviewed your budget, you’ll have a clearer idea of how much you can allocate towards repaying any outstanding debts you have. These could include credit card debts, finance deal payments, or personal loans.

It’s a good idea to focus on the debts with the highest interest rates first, as it may reduce the overall amount of interest you’ll pay and help you become debt-free more quickly.

If you’re juggling multiple debts, consolidating them into a single loan with a lower interest rate could be worth considering. This approach can simplify your repayments and potentially reduce your monthly costs.

However, debt consolidation comes with its own risks, so it’s important to weigh the pros and cons carefully, as it may not be the right solution for everyone.

3. Organise your savings

If you have cash savings, it’s always a good idea to shop around and compare options to ensure you’re getting the most competitive interest rates.

Keep in mind that some savings products come with fixed interest rates for a set period. So, it can be useful to note when that fixed term is due to end and you can reassess your options.

Even if your savings are held as an emergency fund and you don’t plan on using them, a slightly higher interest rate can make a significant difference over time.

Moreover, now that the 2025/26 tax year has begun, you can top up your ISAs.

Whether you’re using a Cash ISA for short-term savings or a Stocks and Shares ISA for long-term growth, making the most of your allowance early in the tax year can help you maximise potential returns.

For the 2025/26 tax year, the ISA allowance is £20,000.

4. Review your pension contributions

Once you’re clear on your budget, debt repayments, and savings goals, you may want to review your pension.

Investing a portion of any surplus income you have into your pension not only helps grow your retirement fund but also allows you to benefit from tax relief.

Pension contributions are usually relieved at your marginal rate of Income Tax. Basic-rate relief is typically added automatically, but higher- and additional-rate taxpayers may need to claim the extra relief through self-assessment.

Even if you’re happy with your current pension contributions, there are still steps you can take to optimise your retirement savings.

For instance, if you’ve changed jobs in the past decade, you may have dormant pension pots set up by former employers. Tracking these down and consolidating them into a single plan could make your pensions easier to manage, give you a clearer picture of your retirement outlook, and potentially reduce fees.

However, pension consolidation isn’t right for everyone. Some older pensions may come with valuable guarantees, benefits, or lower charges that you’d forfeit by transferring. So, it’s important to review the terms of each plan carefully and speak to a financial planner before making any decisions.

Get in touch

To find out how we can help you with your financial spring clean, please get in touch.

Email info@blueskyifas.co.uk or call us on 01189 876655.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.