Financial fitness is a product of small actions that are carried out consistently over a period of time.  Given that the end of another calendar year is approaching, it is now time to set out a financial plan of action to achieve financial fitness.  Here are a list of actions that, if followed, can go a long way in making you financially fit:

1. Prepare net worth statement.  A net worth statement is merely a list of your assets and liabilities.  Take out a piece of paper or start an Excel spreadsheet and write out each of your assets and then each of your liabilities.  Subtract the two at the bottom of the column to figure your net worth.  On the first day of every month take this piece of paper out or open this Excel spreadsheet and add a new column and update your asset, liability, and net worth figures (yes, every single month).  You can use this list to gauge your progress throughout the year. 
2. Create a budget.  A budget is simply a list of your expected income and expenses.  You should be realistic with the figures that you choose, as a budget based on wishful thinking will never be fulfilled.  Add a miscellaneous category to your expenses and set a fixed amount for it.  Use this amount as your “this expense is an exception” items that you will purchase throughout the year.  Once the budget is prepared, commit to it.  Promise yourself that you will follow it and know that your only leeway is the “this expense is an exception” amount.
3. Create a plan to eliminate debt.  Before you put that budget away, you need to add a debt repayment expense.  Looking at the list of your debts on your net worth statement, determine which debt has the highest interest amount and which debt you do not get to take a tax deduction for.  Non-deductible high interest debt should be the first debt to be repaid.  Set out an amount above and beyond what you normally pay and add that figure as an expense on your budget.  In addition, consider consolidating high interest debts in order to achieve a lower payment and a lower interest rate.  Also, consider eliminating unnecessary expenses.  Even if you have to go without a few things for a year, that is better than having your debt continue to pile up.
4. Create a savings plan.  You are not finished with that budget just yet.  You still need to add an expense for savings.  Start by setting aside an emergency fund.  Typical advice is that this fund should at least equal 20% of your annual income.  These amounts will probably need to be liquid, just in case you need to access them in the near future.  Therefore you will probably want to put these funds into a money market or other savings account.  Once you have that amount saved, you will want to direct this amount to your retirement savings.  At the same time you should review your employer offered retirement benefits to make sure that you are taking full advantage of employer match programs and setting aside the full amount that you can afford.  Government employees should set up a 403B to save more than the mandatory percentage that most government employers require.
5. Create a plan for maximizing your earnings.  Think about your career.  Are there things that you could be doing that would help you earn more?  Maybe you could plan on being nicer to your boss, you can take a few continuing education classes, or you might even take a part-time retail sales job.  The bottom line is that you need to think about how you can further your career, with the aim of earning more.
6. Review your insurance.  You should ensure that you have the minimum insurance possible that covers the widest array of insurable risks that you face.  What this means is don’t carry unnecessary insurance coverage, such as double coverage, coverage that will not pay out if an insurable event occurs.  You should set up a meeting with your insurance agent to discuss these issues.  Remember that disability insurance is one of the most overlooked yet most needed insurance coverage that you can buy.
7. If you are married, review your marital agreements.  Divorce is one of the most financially devastating events that can happen to you.  Lawyers are expensive and the process often does more damage than good.  As such, there really is no other way to say “I love you,” than saying “we need a marital agreement.”  Keep in mind that a marital agreement goes both ways.  In many cases the spouse without the money will be the one that ends up with the most money in later life (this seems to have something to do with fate taking revenge on those who focus on building wealth). 
8. Get a physical exam and set out an exercise/diet plan.  Health issues are another major expense that can destroy the best laid financial plans.  Preventative maintenance is the best insurance you can have here.  Call your doctor to schedule an appointment.  Also set out a realistic exercise and diet plan.  It doesn’t have to be perfect, but it should be better than your current plan.  Baby steps make the process easier.