Create—and Stick to—a Budget

Think managing your finances is overwhelming? Most people do—but it doesn’t have to be. “The simpler the plan, the more likely you’ll stick to it,” says Janet Bodnar, money coach and author of Kiplinger’s Money Smart Women: Everything You Need to Know to Achieve a Lifetime of Financial Security. For starters, track your purchases by writing down everything you buy. “Recording your expenses will make you ask, ‘Is this necessary?’” says Bodnar. And try this trick to avoid overspending: Direct deposit paychecks into your savings account, then transfer money to checking as needed. “People have a harder time withdrawing from their savings because they feel they’ve worked extra hard for the money that sits there,” says Bodnar.

Decide What You Can Downsize

“A big reason people don’t budget is because they think saving means giving up the things they love,” says Bodnar. “But do you really need that $130 cable package, or can you still watch your favorite shows for $60 a month?” Next, stop eating out. The average person spends $1,054 on dinners out per year, according to the American Restaurant Association. Get cooking, and you’ll see the difference in your wallet. Also, check out lowermybills.com to find cheap rates on car insurance and long-distance phone services.

Consider Consolidating Debt

A vacation in Aruba with your girlfriends—fun? Of course! But it may have you swimming in debt long before your tan fades. So if you ran up a few credit-card bills, you may want to consolidate. This means you open a low-interest credit card and combine all your debt into one affordable payment. “It sounds odd, but it’s important to keep your old card open,” says Bodnar. “If you’ve had it for a while, it helps your credit history and your credit score. Just don’t use the card to buy anything else.” Look into a zero percent offer. You’ll get a zero percent interest rate for about six months or longer, but after that—and if you’re late with payments—rates increase, so make sure you can really pay off your debt in the allotted time.

Save for Retirement—At Any Age

“It sounds counterintuitive, but the best time to think about retirement is when you first enter the workforce,” says Bodnar. For most people, that’s upon graduating college, but it’s never too late to plan. Want to get started? Here’s how: A 401(k) is a pretax, tax-deferred investment. This means your money goes in before you pay income tax on it, and you won’t owe taxes until you’re ready to retire. If you’re concerned you don’t make enough money to start a 401(k) or you’re in debt, the good news is, you don’t have to contribute a lot. “It’s best to put as much as you can into your retirement fund, but even if you contribute as little as $50 per paycheck, that will make a big difference over time,” says Bodnar. What’s more, many companies offer to match your contribution dollar for dollar. That’s free money! But if your employer doesn’t offer a 401(k), you can always open a traditional IRA (contributions are tax-deductible and you won't owe taxes on your savings until you make withdrawals in retirement) through companies like Fidelity and the Axa Group.

Establish Your Credit History

Chances are, you’ve seen dozens of offers in the mail for different credit cards. But which one to choose? Look for ones with a low APR (annual percentage rate). The lower the APR, the lower the finance charge will be when you have a revolving balance. And choose a low credit limit until you feel comfortable using the card. Then once you’re approved, heed this advice: Get only one card. “Many people go overboard by getting several cards at once, but the more credit you have, the more you’ll end up using,” says Bodnar. Ideally, you want to pay your balance in full, but if not, at least make minimum payments on all cards so lenders see you’re responsible. Want to track your progress? Request a free credit report from three national credit-reporting agencies at annualcreditreport.com.