The first step towards being more financially savvy is creating a budget. This will help you understand exactly where your money is going and give you an idea of where your financial priorities lie. It's important to remember that budgeting isn't just about cutting back on spending—it's also about planning and setting aside funds for future purchases or investments. A good way to figure out your budget is by taking a look through your bank statements and tallying up how much you’re spending each month on the essentials.

It's easy to forget about ourselves when it comes to saving money, but it's essential that we make sure to set aside funds for our own needs, too. One way to do this is by paying yourself first — i.e., setting aside a certain amount of money each month before making any other payments or purchases. This way, no matter what happens, you'll always have some extra cash for emergencies or indulgences.

We all know how hard it can be to resist the temptation of those little luxuries, but cutting back on unnecessary spending can add up over time. We’re not here to give you the generic “stop buying so much Starbucks and avocado toast” advice you’re used to hearing; if certain small purchases bring you joy, then keep making them. What you can do, however, is identify what areas you can afford to scale back. Pinpoint your lower priorities. If you’re not using your gym membership often, it might be time to cancel it or switch to a cheaper gym. If you’re not pulling up that streaming service as often as you used to, it’s smarter to cancel your subscription and hop back on when your favorite show comes back on. The more recurring purchases you manage to cross off, the easier it’ll be to sustain your savings.