If you've taken advantage of the lighter evenings to spring clean the house and dust off the summer wardrobe, then why not spend some time focusing on your finances.

Savings and investments?
If you have any spare cash to invest this year, perhaps it's time to look at an Individual Savings Account (ISA) as an option for your money. Here are some points to consider when thinking about ISAs:-

Know your limits:
You don't pay tax on the interest ISAs earn. For the tax year 2009/10, you can invest up to £3,600 a year in a cash ISA and £7,200 in a stocks and shares ISA.

Research:
There are some amazing websites out there at the moment offering really good advice on where to put your money. Visit moneysavingexpert.com or moneysupermarket.com for a rates comparison. ISAs bought over the internet do offer good rates but won't take into account your overall financial portfolio so it's often best to consult a financial adviser. (By clicking on these links, you are leaving the site of MumKnowsBest.com who hold no responsibility for accuracy of information contained within these sites)

Look for the most suitable deal for your circumstances:
Some providers offer a short-term bonus to boost the ISA rate for new savers, but be careful as once the bonus ends, the interest rate may not be that good a deal. If this is the case, you can move your ISA to an improved product. If you are in a position to leave your money alone for a few years, then go for a fixed-rate term account as they tend to pay higher interest.

Transfer:
You can choose to switch your ISA to providers earning higher interest. These may be subject to a charge and terms and conditions. Read the small print or check with your adviser.

Check your investment:
It's always best to regularly review your financial portfolio including any ISA transactions to make sure you are getting the most improved rate for your circumstances.

For more information you could also visit: www.hmrc.gov.uk

Top tip for mortgage payments: If you can, put away at least three months worth of mortgage or household payments into a separate account. This way, you have some time on your hand if you or your partner lose your job.

Q - I am thinking of buying a second home as house prices in our area are falling dramatically. Is this still a good idea and how should I finance it?
A - There is still caution in the air when it comes to property - whether it's a first time buy or a second home. Prices still have further to fall in the coming year so whatever you find, negotiate. It's best to have the biggest deposit you can raise so that lenders can offer you the most suitable product for your needs. People with 25 - 40% of the purchase price as deposits are securing the better deals. With interest rates at an all time low, you have to look long term and whatever rate you start your mortgage with, you need to be able to afford any new mortgage payments once the base rate inevitably rises or you need to secure a fixed rate mortgage deal. Raising money for a mortgage is not easy at the moment and again, it's best to approach a reputable mortgage broker with experience in the second home market. Make sure you have enough funds to cover any potential development issues or unexpected bills for your new property. If money is already tight, then this may not be a good time to invest in second homes.

There may be a fee for Mortgage advice. The precise amount will depend upon your circumstances.

Is insurance necessary?
Right now, we are all looking to shave some money off our monthly outgoings and one of the things we all look at is the amount going out towards insurances. It's money we can't see and in most cases, money we don't want to see if it's for critical illness or life cover.

It can be tempting to cancel these policies but that is not the answer. Just think for a minute how you would cover your mortgage if you lost your job, became ill, had an accident or how your family would survive financially without you or your partner.

The amount of insurance depends on your individual circumstances and yes, some people are over-insured. A basic insurance MUST would be life cover. This gives your beneficiary a lump sum to pay off the mortgage should you die before the end of the term. It's quite cheap in relation to other insurances and vital if you have dependants.

Critical illness is also worth serious consideration as it pays out a lump sum if you have life-threatening illness.

In these troubled times, Redundancy Cover seems like a good idea but has recently become very expensive and limited as they only pay out if you're made redundant involuntary. (March 09)

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