A yearly financial review is different from a monthly budget check. The monthly check keeps you on track week to week. The yearly review zooms out — it looks at the full picture, how things changed over twelve months, and what you want the next year to look like. Most people who do one find it more reassuring than they expected, even when the numbers are not perfect.
Start with what actually happened
Pull up twelve months of bank statements and credit card statements and answer a few basic questions. What did you earn in total? What did you spend in total? What are your savings balances now compared with a year ago? What are your debt balances? These four numbers tell you the essential story of your financial year — whether you moved forward, stayed still, or went backwards — and give you a foundation for everything else.
Review your biggest spending categories
Most banks now categorise spending automatically. Look at your top five or six categories and ask whether you feel the amount spent reflected your actual priorities. People regularly discover that they spent significantly on categories that felt invisible month to month — eating out, online shopping, subscriptions — and much less than they intended on things that matter to them. The review is not about judging what you spent; it is about checking whether the spending roughly aligned with what you actually value.
Review your insurance, bills, and subscriptions
The new year is a natural moment to check whether you are still on the best deals for energy, broadband, home insurance, car insurance, and mobile. Any contracts coming up for renewal in the next three months are worth addressing now so you are not rushed when the renewal notice arrives. A list of active subscriptions with their monthly cost is useful to have in front of you — there will almost certainly be something worth cancelling.
Set one or two financial goals for the year ahead
A yearly review without a forward-looking element just describes the past. Deciding on one or two specific financial goals for the coming year — an emergency fund target, a debt you want cleared, a savings amount for a particular purpose — gives the next twelve months direction. Goals work best when they are specific and time-bounded rather than general intentions. "Save three thousand pounds for a house deposit by December" is more useful than "save more".
Secure payment via Stripe. Cancel anytime.
Ask Fin provides general guidance only, not regulated financial advice. Your financial review may surface areas where speaking with a regulated financial adviser would be beneficial.