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Once you've got an idea of your current financial situation, look at your liabilities. Most of us owe money to somebody for something. Common debts include student loans, car loans, home mortgages, and credit card debt. While some forms of debt are okay (home mortgages can be a great example of "good debt", and student loans aren't too bad), other forms are not okay. Credit card debt, in particular, is a big problem, and keeps a lot of people poor. A credit card can be a great financial tool, but only if you never carry a balance from month to month. The fees and interest are just too high. So one of the first steps to take is to pay off high-interest rate consumer debt, since it'll eat you money faster than investing will grow it. There are a lot of great web sites online teaching how to create a "debt elimination calendar", or something similar (here's one). With the extra money you've managed to scrounge up from your lifestyle changes, pay off your credit cards.