When you're starting out, by far the most important thing to do is to develop a financial plan. Remember, the sooner you start, the more your money grows and the closer you'll get to your financial goals. But before you can do that, you need to decide what your priorities are.

List your financial goals

Start by making a list of your financial goals. Begin with your short-term goals, (e.g., new car or vacation), your medium-term goals, (e.g., post-graduate studies, your first home, and finally your long-term goals, (e.g., child's college education, retirement). Ask yourself how important each of these goals are, and begin thinking about what you'll need to do - and how much you'll need to save - to achieve them.

Getting your plan in order

It's time for some serious thinking about how much money is coming in and where it's going. We all like to spend it, but it's how you manage it that will determine whether or not you can reach your goals.

Get rid of high-interest debt
One of the biggest contributors to debt is overuse or misuse of credit cards. Sure they're handy, but most also carry high interest charges, averaging around 18%. Begin to reduce that debt by paying more than the minimum amount each month - starting with whichever debt is carrying the highest interest charges. Consider using just cash - it's easier to track how much money you're spending each month.

Start saving
The next step of your financial plan should be to develop consistent saving habits. A good rule of thumb is to aim to save 10% of your income. If you're finding it difficult to come up with extra money at the end of the month, think about ways you might be able to cut back, like bringing a lunch to work, or buying one less coffee a day. You'd be surprised at how fast the little things can add up, especially over the long term.

Don't forget about emergencies
There are no certainties in life, but the best way to prepare for those unexpected situations - like major car repairs or other unplanned expenses - is to have some money set aside. A good goal is to have enough cash available to cover at least 3-6 months' worth of expenses. A line of credit is a good source of cash in the event of an emergency and doesn't cost anything if it's not used.

Altamira Automatic Investment Plan (AIP)

One of the easiest ways to get into a habit of setting money aside is through Altamira's Automatic Investment Plan (AIP). It works with any budget, starting with as little as $50 per contribution. Make regular contributions to your account and achieve your goals sooner.