Start with a written budget which may (and probably will) change monthly.  List all income and expenses, and every dollar not allocated to an expense item should be applied to the following Steps.  That means each month you zero out your budget  (if you have to apply some funds for a quarterly or annual premium that's still an expense item that is set aside and not spent on anything else.)  

Get to your goal with the following steps systematically, consistently over time.  You can win!  But it's not magic and not "easy".  Do each one in order, and complete the step before going on to the next step.  Yes it's important to play by the rules.

1) Emergency Fund Save $1000 (total) in cash fast.  This is for emergency only --- do NOT use it for anything else!  This is critical and cannot be used for anything else.  Do anything you need to do to get the money.  Do NOT spend it on anything other than the emergencies, like unexpected repairs.  Birthdays, Christmas and vacations are NOT unexpected emergencies!  NO IMPULSE SPENDING.

2)  Debt Eliminator ... modify your behavior.  List all debts smallest, to largest except mortgage.  You need quick wins by paying off the small items.   18-20 months is often all it takes to accomplish eliminating all debt (including cars) but not mortgage.  Use all savings except $1,000 to apply to all debt.  Pay cash for all purchases.  No more charges!  

• Pay the minimum amount due on all except the smallest item.  Pay the minimum PLUS every dollar you can possibly find to get this debt paid off as quickly as possible.
• When #1 is paid in full, go to #2 on your list.  Pay the minimum amount PLUS everything you were paying on #1. Do NOT use the payment from #1 for anything else except to pay off this second smallest debt (which is now your smallest).   You may be tempted to use the money going to the first debt for something else, but don't give in to that temptation!
• When you have paid off #1 and #2, repeat the process with #3 -- applying ALL the extra funds to get this debt paid off as quickly as possible. 
• Repeat this process, continually adding ALL the funds previously sent to the now-paid-in-full debts to the currently smallest debt.  This is not a quick fix -- it will take time, but it is the BEST way to get out of debt forever.

If you need funds for an emergency repair, (for example, $300 for car repairs), use the money from your Emergency Fund.  Then stop step 2, and pay only the minimum amount due until you rebuild your Emergency Fund to $1000.

   3) Finish Emergency Fund - you have momentum -- you'll want 3 to 6 months of living expenses.   Whatever you need to live each month, times 3 to 6 months.   Stuff happens!  The Emergency funds must be in an account that's easy to get to and doesn't carry a penalty for withdrawal.  Money Market account is probably best.  CD's have a penalty, mutual funds are not easily accessible and could be devalued at the time you need it most.  It is NOT for anything else except absolute emergencies.  Christmas gifts are NOT an emergency.  Neither is a new car! 

4)  Basic Investing: Once you have paid off all your debts except your mortgage, start your basic investment fund (or go back to funding it)  Allocate 15%  of your income.  Think long term in selecting investments.   Growth stock mutual funds are good for long term.    Divide evenly among 4 fund types (details coming soon).   IRA's, Roth IRA -- huge tool because it's tax free funds.  If you have 30 years of funding you will have millions built for the retirement nestegg and can live off the income it generates.  If you have a late start, your end result will be smaller, but definitely better than not sta If your investments make 12% interest per year (you can find funds that perform at this level over the long term-- 5+ yrs), and can live in dignity on 8% of nestegg income,  you can still grow your investments or allow for inflation.

5) College funds... college degrees do not insure success. so be realistic about it.  15% success attributable to education and 85% to attitude.  First rule = cash or scholarship.  So bulding a fund where you can pay cash for college is very important.     Skip this step if you don't have kids at home.  You need a growth fund that earns at least 7% to keep pace with increasing education costs.   An Educational Savings Account (ESA) grows tax free like an IRA.  $2000 per year per child if child under 8 should fully fund the college years.  Increase this amount, if possible, for children over 8.

6) Pay off the mortgage.  Finishing well is very important.  Do not settle for "good enough".  This is the final hurdle.  Every dollar possible should go here.  Success stories show people can pay off their mortgage in 7-10 years after starting their Money Makeover program.  It's not easy, but it's worth it!   And don't let anyone tell you it's "wise" to have a mortgage just for the tax deduction (the interest paid is still more than the taxes you'd pay without the deduction!), or that you could use the funds for other investments.   Not good math! 

7) Build wealth.  You're now in top 2% of Americans.  There are only 3 good uses for money -- fun, invest and give.   

• Fun -You've paid the price to get here, so now you should be able to play, and play as big as you want and can afford. Take the whole family on a cruise, get that car you really wanted but waited to get until you reached this point.  Just pay cash!  Enjoy!
• Invest - Look to mutual funds and debt free real estate.  Manage your own funds (you may use a service but stay on top of it -- don't let someone else decide for you).  This is another milestone  or pinacle point ...  like riding a bike up a hill, it's difficult but you get that perfect moment when you are finally get to the top.   The rest of the ride is coasting -- the fruits of your labor.   Now your money will work harder than you do.   You must still manage and direct it, but it's much more fun now.   When your money earns more than you do, you are officially wealthy.  
• Giving is the greatest high.  Money gives power to your good intentions.  There's a saying that the best thing you can do for the poor is not be one of them.  Now you can help the poor rather than just theorizing why they're poor.  You can do vastly more for others -- and it really is a great high to be able to do so.