- Create a budget that works: The third step is to plan how you will spend and save your money according to your income and goals. You need to have a realistic and flexible budget that covers your essential needs, discretionary wants, and savings for the future. You also need to review and adjust your budget regularly to reflect any changes in your situation or goals. You can use tools such as budgeting apps, spreadsheets, or envelopes to help you with this task .

- Develop a savings habit: The fourth step is to build an emergency fund and save for your other goals. You need to have at least three to six months of living expenses saved in a liquid and accessible account for unexpected events or emergencies. You also need to save for your other goals, such as buying a home, starting a business, or retiring comfortably. You can use tools such as automatic transfers, savings accounts, or piggy banks to help you with this task .