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Despite its hurdles, one beneficial thing about the ongoing lockdown situation is that it’s given many of us the chance to pause, reflect and get organised. For instance, being stuck at home with not much to do has given people a reason to do what they’ve always been promising themselves to do – save money. 

Now, if you’re new to the whole money-saving game, you may be wondering where to start exactly. The good news is that leading SIPP claims specialists, Expert Pension Claims, have provided a roundup of the things that are worth considering if you seek to sort your finances this lockdown. Read about these below. 

1. Review your outgoings 

When it comes to creating any kind of personal finance plan, the first thing you need to do is familiarise yourself with your outgoings and check that everyone is in order. 

For example, while many gyms have frozen their customers’ direct debits during lockdown, it’s important to double-check that yours has for you. As well as this, if you signed up for any subscriptions to restaurant clubs or other related services pre-lockdown, you may want to check that you’re not being charged for these anymore. 

2. Claim your entitled benefits 

From jobseekers’ allowance to statutory sick pay, there is a range of benefits that you could be entitled to this lockdown. However, it may probably be the case that you have to claim these for yourself. That being said, it’s essential that you know what specific help is available to you. 

3. Utilise your ISA allowance 

Since 6 April 2021 marks the beginning of a new tax year, it’s important to make sure your tax allowances for this current year are utilised before this date. For example, when it comes to your ISA, it’s worth noting that your £20,000 allowance for this year cannot be carried onto the 2021/22 tax year. So, review your tax allowances and ensure that any remaining amounts are used up. 

4. Shop for a better energy deal 

Your energy bills are likely to have taken an expensive hit since the start of lockdown. After all, we’ve got laptops to charge as a result of working from home, as well as countless TV programmes to enjoy on our screens. With all this activity going on, there has never been a better time to look out for more cost-effective deals for your household. 

5. Shop for a better car insurance deal 

It has been reported that millions of drivers in the UK have fallen victim to the auto-renewal car insurance trap, where the provider automatically takes payment for another year. With this in mind, you must make sure you know when your policy runs out and use the time between now and then to secure a new car insurance deal. 

In order to get cheaper car insurance, you may want to consider things such as paying for your cover in an annual lump sum or decreasing the number of modifications that could increase your premium. 

6. Review your mortgage deal 

Even if you’ve secured a mortgage holiday, it is still worth clarifying that you’re not paying more than you need to on your mortgage. It’s also important to know that if you don’t remortgage onto a different mortgage deal following the end of your current one, your lender will put you onto its standard variable rate (SVR). Standard variable rates aren’t linked to the official base rate and are typically more pricey than the interest rates on fixed or tracker deals. 

With this in mind, it’s worth checking to see whether your mortgage deal is set to end shortly. If this is the case, use this time now to shop around for a better deal. 

7. Consider sharing subscriptions 

Thanks to the events of these past twelve months, you may have signed up to every streaming service there is by now. As wonderful as they are, it’s important to know that all these entertainment subscriptions do add up, so why not split the cost of them with your friends and family? Speaking of which, you’ll be pleased to know that Netflix, Amazon Prime and Spotify all offer shared account options. All you have to do is review the terms of each package and pick the one that’s best for you and everyone else. 

8. Pay off any existing debt 

Finally, you may have found that lockdown has put a pause on your everyday spending habits. For instance, these days you may not be buying travel passes for your commute to work or spending money on those lunches from Pret. As much as we do miss this sense of normality, it’s important to know that we are actually saving more now more than ever. 

Speaking about this subject, Freelance PR professional Ashley Rudd said: “The lockdown was a financial reset button for me. I was able to completely clear my car finance 9 months early, clear my store card debt completely and save £3,000.” 

All things considered, there has never been a better time to pay off any existing debt you may have, whether that be from your credit card or overdraft. If you are in a position to go the extra mile with your money, you may ever consider opening up a general savings account or a lifetime ISA to help you with your future investment decisions. 

Summary 

When it comes to sorting finances during a lockdown, the bottom line is that there is no one-size-fits-all approach, and how you decide to budget or save is completely down to you and your circumstances. Nonetheless, we hope that this post has given you an idea of the kinds of things that are worth reviewing if you intend to be more efficient with money – not just during lockdown but going forward as well.