Two-thirds of people don’t plan finances for more than 12 months

Just 31 per cent of people plan their finances more than a year in advance, according to recent research conducted by Citizens Advice. The data included results from 2,000 people, and highlighted a worrying lack of financial awareness for the future.

One in three people admit to not checking if they're on the best phone contract for their needs. A further 33 per cent haven't checked if they're on the best energy tariff, while 34 per cent don't know if they're on the best broadband deal.

Gillian Guy, chief executive of Citizens Advice, said: "Looking at how you spend your money and where you can trim back will help you plan a budget that meets your daily costs. It can also help you build up savings so that you're prepared for any sudden changes, from one-off expenses like replacing a washing machine to a change in your employment."

In addition to this, the British Bankers' Association (BBA) has suggested some tips to help people improve their finances. With 2016 expected to be the year when interest rates begin to rise, the BBA warns people to prepare themselves for this.

With an increase in services to manage money on the move, people are urged to make the most of these. In addition, a rainy day fund is useful in case of an emergency. 

Clear planning of finances can substantially reduce debt and help you to get your bank account back in the black.