It is important to set aside money, not only for emergencies, but also for major expenses like education, homes, cars, and eventually retirement. Most financial advisors recommend at least the following:
Although it is not always possible to meet the saving goals above, the best way to start is to start saving a little at a time. Once you create a budget within which you can live comfortably, you might want to look at ways of cutting back on other expenses or creating more income. You may want to talk to a financial advisor about ways you cut costs and earn more off the savings you have. Find more ideas on making the most of your money in the next section.