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Live within your means

Tips on how to stay out of debt and save

Some people say that the key to managing money well is to ‘live within your means’. You need to make sure that your monthly costs and expenses are less than your income, which is the amount you earn after taxes have been taken out. If you can live within your means, then you'll be able to stay out of debt and save.

A good way to establish if you are living within your means, is to keep a daily record of where your money goes during a typical month.

When spending exceeds income, Americans overwhelmingly turn to credit to make ends meet. Among respondents who said their spending exceeded their income in the last 12 months, 43% said they used credit to make ends meet.

HSBC has created the YourMoneyCounts financial wellness program which is presented by HSBC staff to the community in a classroom setting. Participant workbooks covering Budgeting, Credit, and Identity Theft and a budgeting worksheet are found through the YourMoneyCount link above. This program was created in partnership with the national nonprofit Greenpath Financial Wellness,  and they provide free individualized support focused on your personal situation and financial wellness.