#3: Build (And Live Within) a Budget

A well-planned budget is a beautiful thing. It can help you cut back in areas where you spend too much. It can also help you SAVE more — for your kids' college, your retirement or that next inevitable downturn.

First, figure out how you spend your money now — track all of your income and expenses for a month or two. Be sure to count even the most seemingly minor of expenses — including that $2 cup of joe from your neighborhood café.

Once you know how much you spend, you can figure out where to cut back. THAT is how you can come up with a realistic number you can actually SAVE every month! (By the way, we've got an easy-to-use calculator that can help you figure out your exact expenses each month — check out How Much Am I Spending?)

Remember: Be realistic, stay focused ... and keep socking away that cash for those rainy days ahead!

Next: #4: Revise Your Investments