How to bring your finances together in the New Year
The start of a new year often encourages people to take stock of their finances. Bringing everything together in one place can help you feel more organised and give you a clearer view of your overall position. This guide explains what consolidation involves, why people consider it and which areas of your finances might benefit from a review. This article provides general information only and does not take account of personal circumstances.
What does it mean to bring your finances together?
Bringing your finances together simply means taking steps to organise your accounts, policies and products so they are easier to manage. This might involve reviewing what you already have, closing old accounts, updating information or looking at where everything sits. For some people it includes consolidation, but for many it is simply about creating clarity.
Why do people review their finances in the New Year?
January is a natural reset point. Many people prefer to begin the year with a clearer view of where their money is going, what they hold and what may need attention. A financial review can help create structure, highlight duplicated products, and make everyday money management feel more manageable.
What areas of your finances might you bring together?
Bank accounts and regular payments
Some people start by reviewing their current accounts, savings accounts and regular payments. This can help identify subscriptions that are no longer used, payments that have changed and standing orders that may need updating.
Credit and borrowing
Looking at borrowing such as loans, credit cards and store finance agreements can help people understand what is owed and the total cost of borrowing. Some choose to bring this information together so they can manage repayments more easily.
Savings and investment accounts
It is common for people to build up multiple savings pots or investment accounts over time. Reviewing these can help create a more complete picture of what is held, what each account is for and whether any are inactive.
Pensions built up across different jobs
People who have changed jobs over the years often have several workplace pensions. Bringing information together can provide a clearer view of what is held where. Some choose to explore consolidation, although whether this is suitable depends on individual circumstances. Obtaining good quality advice prior to consolidating any pensions is important.
Insurance and protection policies
Life insurance, income protection or home insurance policies might have been taken out at different times. Reviewing renewal dates, beneficiaries and coverage can help ensure everything is up to date. You maybe able to obtain identical cover but for a cheaper premium.
Why do some people consolidate their finances?
Consolidation is not right for everyone, but people sometimes choose it because it can make financial management more straightforward. When everything sits in fewer places, it can be easier to understand charges, monitor progress or keep track of documents.
However, consolidation can also have drawbacks. Charges, guarantees, benefits or exit fees may differ between providers, and bringing products together can result in losing features that are valuable to you. This is why consolidation requires careful consideration of your own circumstances.
How can reviewing your finances help long term?
A clearer financial structure can make everyday decisions feel easier. When you understand what you have, where it sits and how it works, it can be simpler to stay on top of spending, keep track of commitments and plan for key milestones.
Frequently asked questions
What does financial consolidation mean?
Financial consolidation means reviewing and potentially combining accounts or products to make them easier to manage.
Why do people organise their finances in January?
The New Year is a natural time to reset, review spending patterns and bring together financial information.
Should I consolidate my pensions?
Some people consolidate pensions to make them easier to manage, but this depends on individual circumstances. Features, charges or guarantees may differ.
Does consolidation always save money?
Not necessarily. It depends on the charges, benefits and terms of each product.
Is bringing your finances together the same as consolidating?
No. Some people simply organise and review what they hold. Consolidation is only one optional step within that process.
Related reading on the IPFA website
Final note
Bringing your finances together in the New Year can provide structure and clarity. For some people, this involves simple organisation. For others, it includes exploring whether consolidating accounts or policies is right for them. This information is designed to give an overview only and is not personal advice.