The most important part about managing your money wisely is learning how to budget it properly. Some people think of proper budgeting as simply not spending, but that isn’t true. Money has three main responsibilities: saving, spending, and investing. Most people are concerned with the spending part, but the other two are just as important.

A good rule of thumb to create a consistent amount of savings is to subtract that amount from your income. The difference will become your budget for spending. Many people recommend saving 10 percent of your income and putting it in your emergency fund, which should be in a separate account. This money should be left untouched unless dire circumstances call for it.

However, it’s also important to set aside some money for your hobbies. It will improve your relationship with your money, as spending what you’ve allocated for pleasure will lessen feelings of guilt. Your money is also yours to enjoy—but in moderation, of course!