Top of main content

Spend wisely

Father and son looking up the sky with binoculars; image used for HSBC Spend wisely article

When you have competing demands for your money, it can be hard to make good decisions about what to buy and how to spend.

You may find it helps to put your expenses into Needs, Wants and Savings or Reducing debts.


These are the unavoidable costs that help to keep you and your loved ones safe, warm and fed. They include your mortgage or rent, food shopping, utilities, transport, as well as minimum payments on loans and borrowing. Remember to include any tax you owe, unless it has already been deducted from your salary by your employer.


These are all the things you spend money on that are not absolutely essential. They include meals out, going to the cinema, new clothes, gym membership, holidays and concert tickets.

Savings or reducing debts

Savings might be for emergencies, short-term goals (like a holiday) or longer-term plans (such as retirement). Debts include any debt repayments you make each month, in addition to any minimum payment requirement.


When you make decisions that involve spending it's a good idea to keep these 3 categories in mind. If you notice that you are spending too much in any single category, it could be an indicator that you need to adjust your spending habits.


HSBC found that 68% of Indian Millennial's are prepared to cut back on their expenses in order to save for their long-term future.

Financial wellbeing

Father and son playing in the park; image used for HSBC Build emergency savings article
Put money away for the unexpected
A woman talking on the phone; image used for HSBC India Avoid excessive borrowing article
Excessive borrowing is any amount of debt that you can't comfortably manage. There are several signs to look out for.
A man managing online banking; image used for HSBC India Manage existing debt article
Smarter ways to reduce what you owe.


This publication has been issued by The Hongkong and Shanghai Banking Corporation Limited (HSBC), India, Incorporated in Hong Kong SAR with limited liability, for the information of its customers only. This publication does not constitute investment advice or an offer to sell, or a solicitation of an offer to purchase or subscribe to any investment. The information herein is derived from sources believed to be reliable and the concerned Information Provider(s) have duly authorised HSBC to use such information provided by them. Whilst every care has been taken in compiling the information, HSBC and the concerned Information Provider(s) do not guarantee, or make any representation or warranty and accept no responsibility or liability as to its accuracy or completeness and shall not be liable for damages arising out of any person's reliance upon this information or any action taken or not taken as a result of any material contained in the publication. Expressions of opinion are those of HSBC and the Information Provider(s) only and are subject to change without notice. HSBC has not independently verified any information provided by the Information Provider (s) or that has been derived from the sources believed to be reliable by HSBC. Opinions expressed herein do not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this publication. This document is for circulation in India only. No part of this publication may be reproduced or stored in a retrieval system without the prior written permission of HSBC. Any liability is accordingly expressly disclaimed by HSBC, its officers, directors and employees.