Spending More Than You Earn | Money Budgeting - HSBC UK (2024)

If you’re finding that your outgoings are exceeding your incomings on a regular basis, it’s likely a sign that something needs to change.

Identifying trends may help reshape the way you do things. For example, you don’t want to stop spending time with friends, but you may be able to suggest a cheaper spot for dinner or a different activity that’s free.

Explore:Understanding your spending

One way to help reduce the chance of buying something you’ll later regret is to delay your decisions for a few days. This may lessen the impact of any compulsive spending triggers or temporary thoughts to help you become more mindful of your spending.

Delaying your spending can give you time to think about whether something is necessary or worthwhile. For example, if you’re interested in a new pair of trainers when you’re at the shops, you could feel they’re less necessary a few days later when you’re sitting at home.

Explore:How to make good spending decisions

It can be easy to use acredit card, oroverdraft, to make ends meet. However, you may be charged interest, so it can be a good ideato avoid borrowing or minimise how much you borrow.

If you can, try and get by for the month using only the money in your current account. If that’s not possible, look at how much you’re spending on your credit card or using your overdraft and set yourself a goal to reduce that amount each month.

Explore:How to get out of your overdraft

Abudgetis a good way to stay on top of your spending. You can set specific categories for spending and then a goal within each category. It’s important to be realistic with your goals, so you set yourself up for success.

If you need help putting your budget together, you may want to use abudget planner. This can show you a breakdown of where you’re spending, and possibly overspending, your money.

Once you’ve created your budget, it’s useful to review your transactions and see if there’s anything you’re paying for, which you can reduce the cost of– or cancel.

Explore:How to manage your subscription services and save money

If you’re an HSBC customer with mobile banking, you may be able to use ourBalance After Billstool. This can show you what money you could have available, once your regular standing orders and Direct Debits have left your account. This could help make it easier to manage your money for the rest of the month.

Explore:How to manage bills

Once you have your budget, make sure you keep a close eye on your spending. Use an app, like theHSBC UK Mobile Banking app, toregularly check your finances to try and avoid any surprises.

If things don’t go to plan, that’s okay. The more you know about your spending, the more informed decisions you’ll be able to make.

Explore:Steps to financial wellbeing

If you need help managing your finances, speaking to a trusted family member or friend can help.

Talking about money can help you tackle any money worries you have, and help you reach your goals, such as getting out of debt or boosting your savings.

If these strategies aren’t working and you feel things are getting more difficult, it’s important toget assistance.There is support available to help you get back on track.

If you think your mental health could be affecting the way you manage your money, we have arange of servicesavailable to support you.

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