Learning to be smart about your money is a lot like trying to lose weight. You know that diet and exercise will help, but sometimes it is hard to fit those efforts into your life. Money is no different. You know that if you want to have more money, you either have to spend less (diet) or earn more (exercise), and it’s still hard to make it happen. However, there are many roads to proper money management. Here’s how to get started.

Be Frugal

Sometimes old advice is the best advice. If you take a careful look at how you spend your hard-earned dough, you are bound to see that some of those expenditures were unnecessary. You could have skipped your afternoon latte or chosen a regular coffee. You could have packed your lunch or bought a cheaper meal. You probably could have not purchased that last piece of clothing, takeout order or pair of shoes. It all adds up. Alternatively, you could find ways to shave some money off those expenses. Look for coupons, shop when things are on sale and browse the discount racks. All those little savings add up, too.

Build a Nest Egg

Next, focus on building a nest egg. Ideally, you are going to want to have six months of income set aside, more if you are self-employed. This emergency fund is meant to tide you over if you lose your job, get sick, become injured, lose your apartment, need a massive repair on your home or experience another catastrophe. If you have those savings in place, you will have options, and you won’t have to try to finance your life using debt.

Saving six months’ worth of salary can feel enormous, but it does reduce your stress – and think about how much better you will sleep at night when you aren’t drowning in credit card debt after some catastrophe rocks your world.

The trick is to start small. Begin with $1,000 and go from there. Every penny saved helps.

Invest for Retirement

Look to your future as well. Whether you are young or old, the best time to start saving for retirement is right now. Compound interest takes time to work its magic. Consider this example from Finance SuperHero:

Rob invests $250 a month for 10 years, from the age of 20 to 30. Then he stops.

Dan saves $250 per month from the age of 30 to 60.

Assuming these guys are the same age, Rob will have $917,725 in his account at the age of 60. While Dan will only have $542,830, despite the fact that he invested three times as much.

Now granted, this example assumes a 10 percent return per year. Your actual performance could be much lower. You also need to have an investment vehicle in place that lets you earn a healthy profit. You could self-manage, but that takes time and expertise. It’s great if you have those resources. If not, look at 401(k) plans, IRAs or another retirement savings plan.

Either way, the sooner you start saving for your future, the better.

Plan Ahead

Next, remember to plan ahead. There is more to your life than an emergency fund and a retirement plan. If you are like most people, you have goals that will take money to realize. You might want to go on an extended European vacation, take a cruise, buy a house, remodel your home, go back to school, send your children to college or open your own business. Every single one of those dreams requires a bankroll.

Most people fund those activities through debt, but if you can manage to plan ahead and save the money before you need it, you will be able to afford to do whatever you want without paying interest.

Protect Your Assets

As you work to secure your future and achieve your goals, take steps to protect your assets. Having the right insurance coverage and warranties in place is an excellent place to start. Health insurance will save you from doctor bills and prescriptions while disability insurance helps protect your take-home income when you are hurt. Life insurance is also important, especially if you rely on your partner’s or spouse’s income to live your current lifestyle. You should also make sure that you have enough insurance on your car. In addition to collision and comprehensive coverage, adding an extended warranty and other tools are smart ways to ensure that unexpected car trouble doesn’t throw off your financial plans.

You can learn to be smart about your money. Start by saving money for an emergency, then start to look to the future. Plan for retirement, save for specific goals and take out all the insurance and warranties you could need. With a careful eye on where your money is going and consistent efforts to save, you can improve your financial health.