As we begin to recover from the horrible downturn of the economy over the last couple of years, more and more people are asking themselves “how can I make smarter decisions with money?” We know that we can’t rely totally on employers, family or the government financially, so how do we begin to set ourselves up for retirement or a “rainy day”? The resounding answer comes from investing, but this comes with even more questions.

Many people hear the word “invest” and feel like running away. But this seemingly complex concept can be broken down with several basic tips to remember. The first tip is to remember that ever single dollar is a potential investment. This means that every dollar earned, won or gifted could be used to invest and bring back larger returns.

When you begin to think this way, you already start making better decisions with money. A person who really begins to understand that every dollar could generate more of itself begins to carefully analyze where his money is going. As soon as you become aware of where your money is going, you can easily pick up on the “leaks” and begin to plug them up. The very next step from there is to figure out what to do with the money that you are no longer wasting.

Every dollar could be an investment. Let’s be clear and state: leaving your money in a savings account earning less than 5% doesn’t count. Sometimes it is necessary to find a professional to guide or ease you into investing. This way, you can rest assured knowing that decisions made with your money are wise ones based on experience.

To set up this awareness, begin tracking your income, spending and saving habits. If you already have a savings plan in place, great! You are in a situation to begin investing quickly. If you don’t have a savings plan, then you need to take a look at your finances and spending, locate leaks, and begin redirecting that money into investments. This is the first step to taking control of your financial future.