Have you ever heard the saying, “Put your money to work for you”? It’s often used to encourage people to establish savings or invest their money to become financially successful. If you’re like most people, you may be wondering how to get started. There’s no secret formula. You just need to follow 4 simple steps.

Step 1: Know Your Numbers

Comparing your income to monthly payments will help you budget for savings. It all begins with creating a budget and understanding your cash flow. Start with how much money you have available each month and how much you need to pay toward expenses. Don’t forget to account for bills that don’t come every month, like car insurance. What’s left over? Put at least some of this money aside in a savings account, because saving even a little now can put you ahead later. Our budget worksheet can help.

Step 2: Protect What’s Yours

Insurance is the best defense against the unexpected. Are you planning to get married, buy a car or house or have a family? It’s important to protect yourself, your family and your assets against financial risk. Determine what should be insured and how much coverage you’ll need, keeping future expenses in mind. If the unexpected happens, life insurance can cover your income, debts or children’s college expenses.

Step 3: Fund Your Future

How do you see your retirement? Traveling? Pursuing hobbies? Spending time with family? Plan and save for a comfortable retirement by taking advantage of all retirement plan opportunities. Does your employer provide a plan? Sign up! Will your employer match your contributions? Contribute no less than the amount they’ll match.

Learn more about planning and saving for retirement at Navy Federal’s MakingCents.

Step 4: Build Your Wealth

If you want to grow what you’ve saved, look for opportunities to invest. If you’re uncertain where to begin, you can create a relationship with a financial institution and find a financial advisor to help you build a strong, diversified portfolio.

You’ll first need to decide on your goals and determine how long you have to meet them. A 40-year plan will be very different from a 15- or 25-year plan. Finally, educate yourself on the risks and rewards for different types of investment opportunities.