Your financial action plan

Budgeting might sound easier said than done, but it doesn't have to be hard. Start by asking yourself what amount of money do you realistically need to live on? These questions might help: 

• The big bills… rent, mortgages and car lending. When was the last time you reviewed your options? Can you get a better deal? 
• Do you have costly credit card debt? Can you get a balance transfer deal , ideally with 0% interest?
• How do you shop for food? Do you do a weekly food shop or buy each day? Buying in bulk, ahead of time is the way to go – last minute purchases are often more costly. 
• What about utilities? Have you switched to get a better deal? 
• And your other day-to-day expenses? Travel to work, for instance, can be a big cost for many people. Could you reduce your spend by riding a bike or car-sharing? 

The secret to success with sticking to a budget is to pay close attention. Investing a few moments little and often often can pay big dividends. Understanding your income and outgoings can reduce your stress – and help you spend less than you earn.

For an easy way to see your accounts from different banks together in one place, try our Connected Money app. Right now, the app is available to HSBC customers with online banking and an iPhone on iOS 10 or above. Android users and non-HSBC customers – we're working as fast as we can to get the app ready for you.

Apple and iPhone are trademarks of Apple Inc. registered in the U.S and other countries. Android is a trademark of Google LLC.

The idea is simple. From the budget you’ve created, you take the figure that you absolutely need to spend each month to survive and multiple it by 3 – or even better, 6. Imagine the peace of mind that would come from having up to 6 months’ living costs to hand – phew indeed.

Sure, it may take some time to get there. Yet these tips should help: 

• Decide where you are going to put the cash you save for your emergency fund. It needs to be freely accessible, and without fees to withdraw. For a range of instant-access accounts, take a look at our savings options.
• Develop the habit of saving. Just like brushing your teeth, going to the gym or checking your mobile
• Pay yourself a specific amount each month for savings
• If you have extra money, from overtime, a bonus or just spare at the end of the month, add that too

Research suggests that 1 in 6 people would be unable to cope with a £50 increase in monthly bills.² The emergency fund is a great way to be safe instead of sorry. 

Protection is what we call insurance when it relates to things like your life and your income. Not everyone needs life insurance but if you have people who rely on your income to cover the mortgage or other living expenses, then you may well need it.

Wrestling with the questions of what your family would do without you is tough. Understandably, many of us don't grasp that nettle. Yet it's worth making time to have those conversations now. After all, knowing that you and your family are protected, regardless of what the future might throw at you, that's priceless. 

For a fee-free, no-obligation chat with one of our protection experts, call our Wealth Advice Centre

To help you achieve your longer-term goals, you might want to consider investing. By investing to make your money work harder, you'll stand out from the crowd – data suggests only 29% of UK adults hold an investment product.²  

Investing has the potential to make your money work harder than cash – although bear in mind that the value of investments can go down as well as up, which means you may not get back what you invest. Is investing worth the risk? Read our article to see for yourself. 

If you don't want to take any investment risk, a cash ISA could be the best way to save as you pay no tax on the interest you receive – although the value of any tax benefits described depends on your individual circumstances, and tax rules may change in the future. Explore our cash ISA options

However, if you're ready to explore taking a calculated amount of risk, we offer several ways that could help you to grow your money:

• If you'd like to get advice on how to invest, you can get our personalised recommendation when you start investing with just £1,000. Invest with advice 
• If you're interested in funds, our online fund platform, Global Investment Centre, lets you research, buy and monitor your investments. Invest in funds 
• If you'd prefer to choose individual stocks and shares, our online sharedealing service, InvestDirect, lets you create and manage your own portfolio. Invest in shares 

For all of these options, fees apply – please click on the links to find out more.

Whatever your level of confidence, we're here to show you where the stepping stones are so you can build a robust financial action plan. 

The key is to get started today. With HSBC, you can think big by starting small – and in doing so, make your future-self super-proud