Financial fitness plan 2012

"Most couch potatoes will never compete in a triathlon. But they don't need to. Just a few minutes of exercise a day can help the formerly inert shed pounds, boost their energy levels and live longer. If you're already getting a little exercise, a little more can get you truly fit.

The same is true with money. You probably won't transform yourself from a train wreck into a billionaire. With some effort, though, you can pay down debt, build up savings and look forward to a more comfortable financial future."

- Liz Weston in her MSN Money article, "Get financially fit in 2012"

Weston lists five things you can do to help reduce debt, boost savings, and cut expenses:

1) Get your priorities straight.

2) Implement a plan to deal with your debt.

3) Review your expenses.

4) Create your survival plan.

5) Protect what you've got.

Read the full article to find out how.

How to save money when in debt

Dan Danford, Founder and Chief Executive Officer of Family Investment Center, takes a "back to basics" financial advice approach with this week's episode of Money Made Easy.

Danford said he is frequently approached with questions about savings from people faced with a mountain of debt or divorced dads looking for financial advice on divorce.

A common question he hears is:

"Why even bother to save at all? It seems like I’ll never be able to get ahead anyway, so why should I even try?"

Danford says that saving and spending habits have more to do with personal discipline than level of income. He explains different ways you can save, how to use the "Dan Danford eBay test", and more importantly, why you need to save money.

Tax Rule Changes

In this week's Money Made Easy, financial adviser Dan Danford answers this financial question from a viewer: I think tax rules change from year to year, so what are the big tax changes I should be aware of this year before filing?

Danford, MBA, CRSP, of Family Investment Center, says the real way to save money on taxes isn't really about how you file your tax return, but how you structure your financial life as you are living it.