Your New Year Financial Check List

New year and the new year resolutions may already be falling by the wayside. But here are some tips on how to make or save money, with some easy steps.

How to cut your mobile phone bill

I was astounded to find when I checked with my mobile phone company a while back, that I was still paying a huge monthly bill for no reason at all. I had long been out of contract and they never reduced my bill to account for just the calls and data I was using. When I complained - they said it was up to me to change my contract and they would keep charging me the extra unless I asked them to stop. I asked them to stop and within minutes I had cut my phone bill by 75%.

Millions of us could be overpaying for an out-of-contract mobile phone. You can check without even talking to someone by sending a free text with the word “INFO” to 85075. They should text back in seconds - although some are better than others. Smarty texted back useful information, Vox just sent some confusing text askiung me not to leave. But it only takes a second so worth a go and could save you hundreds of pounds.

If you are out of contract, it means you can keep your handset and switch to a Sim-only deal which could save hundreds of pounds in the year ahead.

Pay less tax

Frozen tax thresholds mean record numbers of workers are paying more tax because they are being dragged into higher tax brackets even if they only get inflation-linked wage increases. If that happens, you might be worse off after a wage rise than you were before.,

One way to help avoid paying more tax than necessary, is to use any rise in wages to

increase your pension contributions. Because tax is calculated on your pay after deductions, paying into your own pension pot reduces the take home pay but doesn;'

to reduce the amount you make, you are just putting a bit extra into your pension savings. That way you may be able to avoid being pushed into the higher tax bracket.

Most individuals can save up to £60,000 tax-free into a pension per year.

Use Salary Sacrifice

Salary sacrifice is commonly used to boost your pension, but you can also give up salary in return for benefits such as bikes, mobile phones and bus passes.

Under salary sacrifice schemes, the salary you forgo will not be subject to income tax or National Insurance contributions:

The Cycle to Work scheme operates on the same principle; e-bikes are allowed and there’s no maximum price limit.

Salary sacrifice schemes cover such things as:

• bicycles and cycling safety equipment

• payment into pension schemes

• workplace nurseries

• employer-provided pensions advice

• employer-provided childcare that started on or before 4 October 2018.

If you were going to buy these things anyway, buying them through salary sacrifice schemes can save you a fortune.

Get married & save inheritance tax - the least romantic way to propose.

The last budget made significant changes to inheritance tax which means mroe people are likely to pay it. So if you are living with your partner but not married - it might b worth considering getting married for tax purposes. That's because transfers between spouces mean that assets including properties, pensions and Isas can be passed tax-free between spouses or civil partners upon the first death.

Is your bank performing?

Banks often leave you in duff account which pay very little interest. With inflation now at around 3.5% unless your account is earning that, it is losing real value every day,

The best accounts are currently (Jan 2025) paying around 5% according to the MoneyFacts best buy tables

Check if you can get free insurance

Some bank accounts or credit cards offer free insurance that comes with the account, so there may be no need ti buy separate insurance, indeed you could find that you are paying for it twice.

MSE recommendsThe Virgin Money Club which it says "is especially good for families as you get cover for all family phones and gadgets (such as tablets and laptops), plus worldwide family travel insurance (max age 74). You also get UK & European breakdown cover for the account holder(s). Equivalent policies bought separately would cost up to £500." My personal experience with Virgin Money has been very poor, so I don't like them as a provider but they remain one of the best buys from the Money Saving Expert, so it might just be me that has been unfortunate with all things Money and broadand Virgin branded.

How to get cheaper home insurance

Generally it's not great to automatically renew tou insurance, as you can often get. better deal switching.

Your insurer will usually send your renewal notice about 28 days before your current policy ends. Do nothing, and it'll usually automatically renew at the new price.

According to research conducted by MSE, "the cheapest time to get quotes is 15 days ahead of your renewal date – cover becomes more expensive the closer you get"

Their analysis of over 650,000 quotes from comparison site MoneySupermarket revealed that buying your home insurance five to 25 days ahead of the day you want your policy to start can save you 10%+, compared with leaving it until the last minute.

For other ideas follow me on Twitter/X and BlueSkySocial and other socials at @adamshawbiz and listen to our Money Matters programme with me Jane Garvey & Fi Glover on Times Radio every Monday at 3:40pm