Handling your money responsibly means more than just deciding what to spend it on. The importance of saving money wisely is a skill that is rarely taught in school, yet can have a profound impact on your ability to provide for yourself and your family. It will also enable you to weather the unexpected things that life brings.

Budgeting is something most people would rather not have to think about, but like regular exercise, it can yield many benefits to those who stick to it. Having an awareness of how your money is earned, saved, and spent is essential to building an emergency fund. There are many different approaches and methods people use to budget their money, and deciding which is right for you is a personal choice. Some people prefer to find an app or service that makes it easier, while others will simply roll up their sleeves and track things with pen and paper or a spreadsheet.

Remember, saving money doesn't have to be just about cutting out the things you enjoy spending money on – an informed and educated consumer creates savings with clever tactics like renegotiating their cable bill , taking advantage of sign-up bonuses, and having auto insurance carriers fight for their business every year.

Once you have a comfortable amount of savings available to cover unexpected costs, you can begin saving more aggressively for retirement and investing in things like bonds, securities and stocks, and real estate. Proper money-saving habits also enable you to give back by donating to charity. It is impossible to create and grow your wealth without a healthy savings plan.