MANY people think about shedding pounds in the new year, but with a little organisation and forward thinking with your personal finances you might be able to help your bank balance put on a few pounds.

So get yourself an action plan. It makes sense to dig out your financial records, including: savings balances, ISAs, bonds, insurance plans, both general and life, pensions statements, mortgage statements, credit card and energy bills.

You can then work out how much spare cash you have, over and above money needed to take care of emergencies and bills. If you have debts, it could be prudent to use it to repay them.

Borrowing rates may be low, but savings rates are lower still.

It is fast coming up to two years since the Bank of England cut the base rate to only 0.5 per cent and, depending on your circumstances, it makes sense to repay debt, especially when deposit account returns are so pitiful.

But if you do have money on deposit, ensure that you are getting the best possible rate.

Many savers have money in accounts that are paying extremely low rates, so shop around and move banks or building societies to get more for your buck.

You may have noticed that insurance premiums are rising too – motor insurance premiums are at their highest on record. Never renew a policy without trawling the market for cheaper quotes.

Saving a few pounds here and there all add up, but don’t forget the bigger picture – your future.

Stock markets around the world delivered decent returns last year, but some asset classes will have performed better than others.

Make sure your investments are achieving what you originally intended them to do. How do you see the next few years panning out? Is the risk profile of your portfolio right?

Inflation is beginning to creep up as we begin the new year and should be taken into consideration when calculating total returns.

If you can’t remember the last time you reviewed your investments, now might be a good time to give your portfolio, no matter how big or small, an overhaul.

If you have locked your investments away in a drawer, there is a possibility that your investments are a mismatch and that your portfolio is unbalanced. If that is the case you will need to act to ensure your investment goals and aims are on track.

Our chief strategist is expecting a rise in equity markets again this year and that the FTSE 100 could reach 6450, so it may be worth reviewing your investments within various asset classes, eg cash, equities, property.

Remember too that the limit for Individual Savings Accounts (ISAs) has risen to £10,200. Certainly, many investors have already taken advantage of the first year of the new £10,200 ISA. But, don’t forget that if you don’t use your ISA allowance by April 5, you will lose it.

What about your pension?

Are you saving enough for retirement?

The good news is that we are living longer – the latest figures suggest that more than ten million people will live to be more than 100. But company pensions, in the public and private sector, are under strain.

The onus is falling on people to take responsibility for their own retirement, yet you might be surprised how much you should be salting away each month to be able to generate a decent pension income.

A pension pot of £100,000 sounds a decent sum, but that will buy you an annual income of a little over £5,500 today. If you want a pension of £25,000 a year, you need to be putting in about £320 each month into your pension, assuming you start saving at the age of 25.

Leave it until you are 35 and that monthly figure jumps to about £540. At 45 it becomes more than £1,000 a month.

We are entering an age of austerity. The Government has taken a hard look at Britain’s finances and taken some tough steps to put the economy into a healthier state.

With this year expected to be tough, now might be a good time to take stock of your finances too.

* Anthony Platts is a divisional director in the Teesside office of Brewin Dolphin, and can be contacted on 0845-213-1340.