Keep it simple. Go to the bank and set up three savings accounts: one for emergencies, one for investments and one for vacations and miscellaneous. Have the bank transfer money automatically to all three accounts every month.
Make it a rule to never touch the funds in your investment account except to invest in something that will make you money. Whenever you get a raise, add to all three accounts. If you can’t pay yourself first and pay your bills too, reduce your costs in other areas so you can. If the amount you have is too small to start a bank account, then put the money in three envelopes. It doesn’t matter how small the amount is, it just matters that you begin.
Just as important as the above is to keep track of your money and what you are spending it on. Just becoming conscious of your spending will change your financial life.
