1. Pursue Personal Financial Education

Financial know-how in this day and age is vital to your continued financial success. Current economic conditions are constantly changing and affecting people everywhere. Make a commitment to learn everything you can about money management, credit, lending, investments, etc. - things that can have an impact on your personal money matters.

2. Identify Goals that will Cost Money to Fund

If you are looking to get clear about what you want to accomplish from a financial perspective, you must establish financial goals aligned with your personal values. Financial goals should be tied to the things that matter most to you.

Make a list of your top 10 values, and from that list develop another list of things you would like to do to fully live out and support those values. Naturally some of the things that will show up on that list will cost money. These are your financial goals.

Aligning your goals from a values based approach will support you in living the life you intend.

3. Create and Build Up Personal Assets

Income generating activities can be the spring-board to starting your asset creation plan. Turning a hobby into a home-based business, or pursuing your entreprenuerial interests can yield you some extra needed cash.

Asset building is key component in helping families to withstand financial storms. Unexpected and unplanned expenses will happen at some point, and ideally it should not totally wipe you out financially.

Asset building includes having bank and retirement accounts, homeownership, automobile ownership and even completing a degree. Consider your current savings plan, your emergency fund, and retirement plan and ask yourself, is it or will it be enough?

Generating more income and then funding those accounts with it, is the basis of asset creation.

4. Keep Building Your Credit

Having a good credit score will go a long way in helping you qualify for lower interest rates, getting lower cost insurance premiums, getting hired for employment, and qualifying to purchase a home to name a few.

Checking your credit report at least once per year, is a habit that will help you stay on top of what is being reported with the three major credit bureaus.

If your credit scores are not where you want them to be, work with a credit counselor or financial coach who can provide you the information support you need to implement your personal credit improvement plan.

5. Pay off Debt as Soon as You Can

The interest accruing on your outstanding debt, is offsetting any gains from interest earned on your savings and investments. Paying off your debt has three major benefits:

1. Increased cash flow
2. Increased net worth
3. Decreased debt to income ratios

The combination of these three benefits will be major foundation to your long-term financial capacity. The less debt payments flowing out of your income, the more money you can allocate to other areas of your life that you would like to fund.

6. Keep All Necessary Insurance Coverages in Place

Protecting yourself against catastrophic financial loss is the key to keeping more of your cash in your pocket. If you do not have the cash in the bank to replace your assets after a loss, then insurance is a must.

Also, keep in mind that you are an asset to yourself and your loved ones. Do your research and consider getting and maintaining disability, health, long-term care and life insurance policies.