Step 1: List your assets and liabilities.
Your assets include anything of monetary value - bank accounts, investment accounts, Certificates of Deposit (CDs) and Money Market accounts - and property of marketable value, like your home and your vehicles.

Liabilities are anything you owe - your mortgage, your car payment, your credit card bills and any other unpaid bills. Liabilities do not include things like taxes and insurance, which we'll address below.

Assets minus your liabilities equals your net worth. The aim of a financial plan is to grow or maintain it, depending on your goals.

Step 2: Create a monthly budget.
Start with your monthly income and then subtract all the monthly bills. If you carry credit card balances, take an average of your monthly payments. Estimate an average monthly bill for food. Then add any quarterly, bi-annual and annual expenses like insurance and taxes, as well as any membership dues. Whatever is left over is your discretionary money.

Now it's time to figure out how you're spending it? Online Banking is a boon here - most programs let you download your transactions. You may be surprised by how much you spend a month on things like dining out and coffee.

Step 3: Assess your insurance situation.
It may seem dull, but don't overlook insurance. Nothing will wipe out your finances faster than a catastrophe for which you are not insured. On the flip side, paying for too much insurance, or paying for insurance you don't need at all, can take a bite out of your cash flow. So how much is enough? A good rule of thumb is: If you or your family would face a severe financial hardship if you lost it, get it insured. This goes for intangibles like your health, your job, and yes, your life, as well as for assets like your car, your house and everything in it.

Step 4: Analyze and adjust.
You now have a clear snapshot of your financial situation: Now the fun begins. A financial planner can be a big help in this process. But here are few questions to get you started.

• Are you saving enough?
  Do you have an emergency fund of at least three months salary? If not, make adjustments to your budget to create one. Same for medium-term savings for things like new furniture or a vacation, and long-term savings for retirement or a child's college tuition. 
  
• What is your debt situation?
  Remember, not all debt is bad. But if you are carrying high balances on one or more credit cards, look for ways to pay them off - quickly. If you are a homeowner, tapping into your home's equity - the portion of your home you own - can be a smart way to use your assets. Consider it for other needs too, like home maintenance or improvement, or a child's tuition.

1. Establish an emergency fund. Start building a savings account with enough to cover three to six months of expenses. This will cover you in the case of a job loss, medical emergency, or natural disaster.

2. Open a high-yield savings account. Put your emergency fund into a high-yield savings account, where it could earn five percent or more in interest. Consider this: let's say you have $10,000 in a regular savings account with an interest rate of 0.20 percent. After twelve months you would have earned $20 in interest. In a high-yield savings account with an interest rate of 5.00 percent, that same $10,000 would have earned you $500.

3. Create a budget. It seems so simple, but many of us are flying blind when it comes to how much we spend and on what. Start by tracking your spending for two months, then build a budget based on your expenses. You may be surprised at how quickly that daily latte adds up.

4. Enroll in a 401(k) or IRA. Start saving for retirement now. If your employer offers a 401(k), your contribution is deducted from your paycheck before taxes are taken out. If your employer matches any of your contribution, it's another form of compensation that you'd be foolish to give up. If you are self-employed, establish an IRA and contribute a portion of your income.

5. Know your credit score. This is useful for a lot of reasons. For one thing, you can keep an eye on what's being reported on your credit and gives you an opportunity to correct any errors. It also lets you keep an eye out for fraud or identity theft. It's worth paying for the FICO score - the number creditors use to determine your credit worthiness. Anything above 760 is considered excellent; 700 to 760 is considered good. Below 620 will require some credit repair to avoid high interest rates.

1. Set up an automatic withdrawal. This is a relatively painless way to build a nest egg. Most banks will set up a recurring transfer from your primary checking account into a savings account; some online banking programs let you set this up and manage it yourself. Also check with your employer: if you have your paycheck deposited directly into your bank account, sometimes the payroll department will split your deposit between two accounts.

Setting up an automatic withdrawl is not just convenient, it's also a smart way to pay yourself first. Because you don't have to make the decision each month to transfer cash to your savings account, you won't be tempted to fudge on your savings plan.

2. Make your dollars work harder. If you socked away cash into a traditional savings account each month, you could be losing out on earning interest. Traditional savings accounts typically earn a half a percent or less in interest. A high-yield savings account or certificate of deposit (CD) on the other hand, can earn between five and six percent.

A CD is a "time deposit", a deposit with a fixed length of time. Typically there are early withdrawal fees, but this can be a good option if you know you are not going to need the money before the term expires.

High-yield savings accounts work just like regular savings accounts: typically, you can access the money any time you want.

Let's say you started with $500 and planned to save $100 a month. In a traditional savings account with a 0.5 percent interest, your $900 would have earned a whopping $15.15 in interest after four months. Put that same savings plan into a high-yield savings account with an interest rate of 5.25 percent, and your $900 would have earned $168.89.

3. Start now. The sooner you start, the faster your money can begin to grow. Even if you can only put away a little each month, start now and you'll be amazed at how you can grow your money.

Cell phones and wireless plans
This is one area where comparison shopping is nearly mandatory if you don't want to end up with triple-digit wireless bills. Compare basics like how many minutes you use in a month, and whether you need a national plan or can stick with a local or regional one. Also compare also the per minute rate after your monthly allowance and the charge for text and picture messaging.

Appliances and electronics
With so many retailers selling the same brands of appliances and electronics, comparison shopping can save you a lot. Often you can do the comparison from the comfort of your home, using the websites of national retailers. Don't forget to check out the online-stores like Amazon.com and be sure to check return policies and warranties. In the case of appliances, also look into whether your retailer offers free delivery and removal of your old appliance - a slightly higher price might be worth it.

Savings accounts and CDs
Here, rate shopping may earn you money, rather than saving you money. Comparison shop for the interest rate, and also consider any fees and early withdrawal penalties that might cut into that great savings rate.

Credit cards
Interest rate is important when comparison shopping for credit cards, although if you are the type who pays off your balance every month (and good for you by the way), the interest rate is less of an issue than other features of the card, like annual fees and earnings points.

Mortgages
Rate shopping is very important with mortgages but can be a little less straightforward because there are so many factors that can influence your decision. When shopping, remember that APR (Annual Percentage Rate) can be a good indication of the true cost of the loan, since it includes discount points and some lender fees. You'll also want to consider things like pre-payment penalties, which might go into effect if you ever refinance, type of loan, the loan's term, etc. For more, see our article on how to compare loan offers.