How to Do an Annual Money Review That Actually Improves Your Finances

Most financial decisions are made once and then forgotten. The energy tariff you switched to two years ago, the insurance policy you took out when you moved house, the savings account you opened when rates were higher, the subscriptions you signed up for and rarely use — all of these continue running in the background, often no longer offering the best value or even serving their original purpose. An annual money review is a dedicated session to look at all of these together and make deliberate decisions about each one.

Insurance: renewals and the loyalty penalty

Car, home, and contents insurance are the most commonly reviewed categories in an annual check because the loyalty penalty for auto-renewing is well established. Insurers routinely offer their best prices to new customers rather than existing ones. Running a comparison on each policy a month before renewal and either switching or using a competing quote to negotiate a better rate with your existing provider typically saves between fifty and two hundred pounds per policy per year. Do not auto-renew anything without checking what else is available.

Energy: is your tariff still competitive

The energy market has been more volatile in recent years than at any point in recent memory, and the best tariff for your household changes regularly. Checking the current rates from your supplier against the market and switching if a genuinely better fixed deal is available is worth doing at least once a year. Checking your usage figures against what you are being billed ensures you are not on an estimated bill that is either building up an unexpected debt or sitting on a large credit balance you could reclaim.

Subscriptions and direct debits: the full audit

Go through every direct debit and standing order on your bank statement in one sitting and ask two questions about each: do I use this, and do I get value from it at this cost? The average UK adult has seven to eight subscriptions, and research consistently shows that most people underestimate how many they have and how much they collectively cost. Cancel any that cannot be answered yes to both questions. Prices often increase at renewal without prominent notification, so checking that the amount you are paying now matches what you signed up for is also worth doing.

Savings rates and ISA allowances

Savings rates move frequently, and the account offering the best rate a year ago may now be paying significantly less. Checking the current rate on all savings accounts and comparing against the market takes twenty minutes and can produce a material improvement in interest earned for no reduction in access. The ISA allowance resets each April, and reviewing whether you have used it or could make better use of it in the coming tax year is worth doing as part of the annual review. A pension contribution review — checking whether contributions are on track for your retirement goals — rounds out the savings picture.