i think the key is to have a good picture of what you earn and spend on, i do this with a basic excel tracking income & fixed costs (utilities, bills, etc.) + a monthly budget for the groceries and misc expenses. build a cash cushion of 3 to 6 months of living expenses depending on job stability. after that you are in a great position to start saving for the long term, which you should do as soon as you get a paycheck (pay yourself first). your saving & investments can now compound and you won't need to liquidate anything if something unexpected happens. hope that helps.