i created a contract, bought tokens, now i have tokens stored in the contract. I read if i want to transfer it back to my address, I need to approve the token and transfer. I created two functions approve and transfer. Not sure how to correctly implement it. can someone help in this matter?

By bought you mean minting?

i just used kovan test network, i used eth to buy dai token

from smart contract?

now the dai token is stored in the smart contract

yeah i deployed a smart contract using remix

Do your smart contract have any function to withdraw or calls?

I've got a withdraw function that sends eth from contract and sends it to owner. Im struggling to withdraw tokens in the contract and send it to owner

Call the transfer function of token from your contract

I dont have another contract specified for the token, as I am using uniswap router files and function. With like IUniswapV2Router02. Which is why I am not sure how to implement the approve and transfer with the technology. I have transfer function that works to send eth from contract but NOT with tokens in contract

The token contract in this case is DAI, which is already deployed.
call the DAI's transfer() function from your contract

I'll try that