In theory, managing money should be very easy - understand your income, set up a budget and stick to it. Unfortunately, it is never that straightforward and every once-in-a-while some unexpected expenses will come your way. It can be a sudden car breakdown, a completely forgotten family event or even impulse shopping.

Budgeting, in reality, is the most difficult aspect of the adult life. So, let us help you make your salary last longer with these 5 simple steps.

• Calculate your income and expenses

  Like most of us, you must have been earning lesser last year than you do now. Now try to calculate how much you spent every month back then. Take that as your allowance for this month and see if you can still manage. If yes, you just saved a major chunk of your money, if not, and then increase your allowance a little till you can.

• Review your expenses

  From electricity bills to telephone, grocery, and food bills – review them all properly. Check with your service providers on regular intervals to see if they can provide a better and cheaper plan. Check which options you can avoid in your grocery list in the next round. Avoid regular restaurant dinners; instead of going out with friends, try staying in, cook a nice dinner and have a nice time with them.

• Get rid of unwanted subscriptions

  Do you read all the newspapers and magazines you get? Are you still going to the gym you pay for every month? There are a lot of different payments that we make on monthly basis but do not actually use them. Check if the newspaper and magazine have e-version. If you haven’t availed a service in long, cancel them.

• Invest the extra money

  Instead of letting the money lie around in your account, do more with it. Invest in mutual funds. With SIPs, you can invest a small amount every month with a financial goal in mind. This way instead of just saving your money, you can seek to grow it too.

• Avoid impulse buying

  This is a money drainer we all know about but still end up doing. In most cases, we don’t even need what we buy. So, the next time you see something and have an urge to purchase it, wait for a day or two, and if you still want it, only then buy it.

You have so many easy ways of cutting down on your expenses, and now you also know how aim to use that money to make more. Simply change the way you spend your salary and invest in a mutual fund scheme.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.