Start saving for an emergency fund first.  You need at least 3-6 months of your basic expenses.  Experts say that is the average time it usually takes to get resettled after a natural disaster, death of a loved one, injury, job loss, etc.  It might take 3-6 months for  government benefits, or insurance payments to kick it which are usually not enough to cover expenses.  IF people are prepared financially things will go a lot smoother.  If an earthquake or natural disaster destroys a city block some people will be forced to say in whatever rec center or stadium the gov’t or Red Cross puts them in.  Others will rent cars, book flights and move to hotels ASAP.  Which one would you be?   Once you have an emergency fund, you can relax a bit and know you’ll be ready if your car breaks down or if something else happens.  

Then, split your savings.  You don’t have to have separate accounts but you can if it helps you.  Or keep some in cash hidden in the house.  Have a fund for travel, concerts, whatever and one just for investments.  If you are young at least 1/2 of what you are saving should go in there until your money is making you money.  You’ll have more money sooner if some of your money is making money for you.  It can be for a downpayment on a rental property, the stock market or similar investments, a solid business, etc.  Google “example of compound interest.”  Lastly don’t forget about your retirement.  There’s a lot of swag that comes with knowing your financial future is relatively secure.    Reward yourself along the way but not too much : – )