The single most important thing about saving money is to automate the process. You can do that by utilizing your work 401(k) plan or a direct deposit into a savings or investment account. You want to make sure your automatic savings are set up for the days you get paid so you don’t run short at the end of the month and decide to let savings fall behind. You’ll want to at least put up to your employer’s match in the 401(k) because it’s the closest thing that exists to free money. Next, a Roth IRA acts as a great savings tool for people just beginning. The Roth is good because your contributions are available to be taken back out, in case of emergency or purchasing a first home, for example. Both a 401(k) and Roth IRA can be invested which will provide growth on your money more than what a savings account provides. Sticking to 12% of your income is a good rule of thumb for how much you should be saving. It’s important to have 3-6 months in the savings account, but it’s also important to not over-fill a savings account. It’s like only eating one type of food on a diet – too much of a good thing will eventually become a bad thing. After you’ve saved 3-6 months of expenses, move on to a brokerage account for shorter term needs or an IRA for longer term savings.