How to change Vim indentation

Indentation is important thing for programmer to write code. Vim is my favorite code editor and by default its indentation is four whitespaces characters. But I 'm prefer to use two whitespaces. So here are my steps to change vim's indentation on my Slackware Linux:

1. Create .vimrc file on your home directory.
2. write these on .vimrc:

set shiftwidth=2
set tabstop=2

3. save file.

Explanations
1. shiftwidth: to control how many whitespace will be indented.
2. tabstop: to control how many whitespace a tab counts for.

Reference: http://tedlogan.com/techblog3.html