How to set locale in Ubuntu linux

Too often we can see that locale is not properly set in Linux server. After failed attempts to change environment variables and (re)configure locale using dpkg-reconfigure, not much is left, but to update environment files manually.  Why is correct locate important? Today there is simply too many if not all programs that are dependent on correct locale. Suddenly, after trying to run one of them, you get error that does not give too much sense. Then you start digging and realize that everything points to general system, and finally to locale. So let’s take a look how to configure locale so that your system works the way you expect it to.
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