Setting financial goals is the fun part-- go out to dinner and write up the list over dessert.

5. Pay yourself first. Contact your employer and your credit union for automatic deposit and automatic savings plans. Once you start to build up your savings accounts, keep your money in the type of account that earns the most interest. Make sure you set up an emergency fund with a balance of at least three months' living expenses. 6. Take full advantage of employee benefits. Visit your human resource representative to make sure you're taking advantage of all the benefits your employer offers. Find out the details about such benefits as maximum life and disability insurance, flexible spending plans for child care and medical expenses, retirement plans, and employee assistance programs. 7. Review your insurance. Broihahn recommends reviewing your life, disability, auto, and homeowners insurance, and buying an umbrella liability policy with coverage of at least $1 million. Comparison shop for prices and service, and find out if you qualify for any discounts for multiple policies, safe driving, safety equipment, or your driving child's good grades. 8. Educate yourself about investments. Passbook savings accounts and CDs won't grow fast enough to keep pace with inflation. To reach your goals, you need to learn the basics of investing and get your plan in place. Educate yourself by reading a few books such as "Making the Most of Your Money" (ISBN 0-671-65952-9) by Jane Bryant Quinn, and visiting educational investment Web sites such as the American Association of Individual Investors site. If you don't want to tackle this by yourself, work with a reputable, knowledgeable financial planner.

9. Don't overpay Uncle Sam. If you've gotten tax refunds in the past, it's time to see your payroll department and adjust your withholding for the next year. Broihahn says a new child tax credit of $500 per child ($400 in 1998, $500 in '99) is available to married couples making less than $110,000 and singles making less than $75,000 a year. 10. Make your choices known. Write up a will, a living will, a health care power of attorney, and a financial power of attorney. Make sure all documents are appropriate for your state of residence and keep copies in a safe, accessible place. Give your physician and local hospital a copy of your living will for your medical file. If your assets are worth more than $650,000, consult an estate planning expert for information about a bypass trust, says Broihahn. 11. Get your house in order. How much stuff do you have? And where do you keep it? Being disorganized wastes money and time. Go through your house, room by room, and get rid of stuff you don't use or clothes you don't wear--think garage sales and resale shops that result in money in your pocket. When it comes to buying clothes, remember the 80/20 rule--you wear 20% of your things 80% of the time. Figure out what you like and invest wisely by buying only the 20% you'll wear. If you donate goods to charity, remember to get a receipt for your taxes. 12. Get help with tax planning. According to Broihahn, your investments will determine what taxes you'll pay and what deductions you can take. Consider setting up a meeting with a CPA or a financial adviser to get helpful and up-to-date information about your situation.

Your debt,    excluding your    mortgage, shouldn't be    more than 20%    of your net    monthly income.