Grappling with excessive debt or poor money management skills is no easy task. As the economy continues to contract, credit card companies lowering credit limits, and job security tenuous, keeping track of your money and wealth is paramount. Here, David Hinson, founder of Wealth Management Network, a wealth management consulting firm, offers tips on how to get into financial shape. A financial adviser for nearly 20 years, Hinson's areas of expertise include financial planning and asset protection. If you're looking to learn more about handling personal finance matters, submit any questions in the comments section below. Hinson will be answering them directly. Also, be sure to check out our Financial Fitness Checklist for a step-by-step guide on what you can do to boost your credit, savings, and investments. BlackEnterprise.com: What's the best strategy for developing a realistic budget that someone can actually follow? David Hinson: The best way to start developing a budget is to write down -- preferably in an [Microsoft] Excel spreadsheet -- all your daily and monthly expenses. This will provide a clear picture of where you are today. Then, set a savings/lifestyle goal. For example, I want to buy my own home by age 35, and I will have to save $15,000 for the next three years to get it. Implant that saving goal into your monthly budget as the amount that you agree with yourself to save. Make it easy on yourself by opening a brokerage account (online, at your bank, or with your adviser) and have money automatically moved to that account every month or pay period. What financial goals should people be making amid the current economic downturn? Financial goals are not based upon where you are but where you want to go. Dream a big dream and let that be your guide. Often people will say "be realistic." Every goal is realistic in time! I recommend: Saving six to eight months of expenses Keeping at least $3,000 in cash in a secured place in your home in case of extreme emergency Pay off 50% of outstanding credit card balances in the next six months Reduce spending by 25% Delay big-ticket purchases until you can pay for them with cash. That includes cars, electronics, appliances, clothes, etc. Why is it important that financial goals be intertwined with life goals? Because our ability to achieve our life goals are in whole or in part a reflection of our ability to achieve our financial goals. In the absence of considering the power of financial goals, we will not be able to achieve our life goals. In other words, every life goal has by definition a financial component. With the stock market in flux, retirement savings have taken huge hits. What are some ways people can protect their investments? The best way to protect your investment is not to panic and make unwise decisions. Be clear on your time horizon and how much you need to achieve your goals. Take a long-term view and continue to save and invest at these lows. This market will come back. Remember, five years after the Great Depression, the market was up over 200%. What criteria should someone use in deciding whether they need a financial adviser? What is the best way to go about finding a financial adviser? When you hire an adviser, you are hiring the intellectual capital of the person regardless of the firm they are with. You should seek an adviser with meaningful experience, someone with extremely high integrity, someone who respects your money, someone who has a definable view of the market and someone who will listen to you, not the firm that they work for. Trust is important, but do not confuse trust with capability. No. 3 of the Black Enterprise Wealth for Life principles says, "I will effectively manage my budget, credit, debt, and tax obligations.†For someone looking to pay down and manage debt, what should be the first step? Why? The first step should be to understand your debts and how you generated them. Take a credit card, look at the outstanding balance and write down what you spent the money on. If you do not know, then you are likely not focused enough on your spending patterns. In this instance, the first step to reducing debt is to understand your spending tendencies so that you won't run it back up. The second step is to segment debts into long term and short term, then by interest rates and finally by maximum payment amount. Third, you want to first pay down short term debt with the highest payment amount to increase cash outflow. And lastly, pay down short-term debt with the highest interest rate and finally, you want to begin to pay-down longer term debts. However, do not pay down all your debts and be left with no cash to protect yourself in case of an unanticipated event. Financial experts often say "pay yourself first.†Why is this important? What is the best way to do so? Paying yourself first means making sure that your business (you) is receiving compensation as you provide compensation to the businesses of others (creditor and service providers). It is important because if you pay out every dollar to creditor or service providers, you'll never get ahead. You are simply living day-to-day without consideration for your future or future generations. The best way to do it is set a number -- hopefully no less than 5% of your net income -- that you are going to pay yourself. Then follow instructions outlined in question No. 1. How can someone go about finding financial opportunity amid the economic slowdown? Many people are scared right now so they can never see opportunity because their mind focus is on not losing any more -- fear. The key is to gear your mindset for opportunity and create a mental profile of what types of opportunities you know you can access. Ask yourself these questions: What am I most interested in. What excites me and what am I best at? What area do I know well or have a unique expertise in? What products/services do I buy, frequently use, and am most interested in? How would I like to spend my time — making something, selling something, etc.? What areas have I invested in in the past that were profitable or successful? How much of my personal funds am I willing to risk? Wherever these lines cross, this is the area that you should be focused on seeking opportunity.