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.

 

And if you're already in pretty good shape, you can take steps to get even more financially fit in 2012. The following are some strategies:

 

Retirement must come first. If you're putting off retirement savings for some other goal – paying off debt, saving for a child's education, scraping up a down payment -- you need to realign your priorities. Saving for retirement tends to be a use-it-or-lose-it proposition. You can't get back any company matches and tax breaks you forgo. Plus, you want the power of compounding working for you. It will get increasingly harder as you get older to make up for lost time. If you're falling short, try boosting your current savings rate by 1 or 2 percentage points. Chances are, you won't miss the money that much, and it could make a big difference in the long run. Increase your contribution a little bit each year or whenever you get a raise. If you're already on track, step up your financial fitness by rebalancing your retirement accounts so your asset allocation -- how you've got your money divided among U.S. stocks, foreign stocks, bonds and cash -- is where you want it to be. If you're not sure how you should be investing your money, your bank’s investment representative may provide guidance.

 

A lot of people in debt are in denial about how deep a hole they've dug for themselves. You're probably in over your head with debt if:

 

 

If any of the above is true for you, consider making two appointments: one with a legitimate credit counselor and one with a bankruptcy attorney. If you're close to the financial edge, advice from these two sources may prevent you from falling over it. If your debt is more manageable, you can start targeting your most troublesome bills first – typically your credit cards or other so-called toxic debt. Paying the minimums on your other debts while you throw as much money as possible at your highest-rate card can help you speed your way out of debt. You don't need to be in such a big rush to pay off mortgage debt or federal student loans. These are relatively low-rate loans that are often tax deductible.

 

Speed up your payments on these only after you've paid off other debt. No troublesome debt? Check to see if you can get a better deal on a rewards credit card. People who pay their balances in full every month can get free travel, cash rebates and other goodies, but the deals change frequently.

 

The usual advice, when you're struggling to get from paycheck to paycheck, is to trim the relatively small expenses -- the lattes, the dinners out, the cable-TV bills. But if you've cut those and still can't make ends meet, your problem is probably your big expenses: what you're paying for shelter, transportation, utilities, food, child care and insurance, plus your minimum loan payments. These costs make up your must-have expenses, and if you want a balanced financial life, they should total 50% or less of your after-tax income. That would leave you 30% to spend on wants (clothes, vacations, gifts, etc.) and 20% to pay down debt and save for your future. Reducing those big expenses isn't easy, but keeping your overhead in line with your income can give you far more flexibility to handle financial setbacks.

 

Got your budget in balance? Even if your cash is flowing just fine, it's still important to check for leaks. Jeff Yeager, the author of "The Cheapskate Next Door," conducts periodic "spending autopsies" to figure out where the money is going and what expenses are getting out of hand. You can go old school, as Yeager does, and do this by hand. Gather bank and credit card statements from the past couple of months and add up what you spent in various budget

categories. Or you can use an online service such as Mint.com, which can automatically download transactions and total them by category. Spending on groceries, entertainment, pay television and subscription services are good places to look for savings.

 

An emergency fund can help you survive a job loss or other setback, but it can take a long time to save up sufficient cash. In "The 10 Commandments of Money," I show how it can take a typical family more than two years to pile up a fund equal to three months' worth of their expenses. That's why an emergency fund shouldn't be your priority; you don't want to delay important goals like saving for retirement or paying off debt while you laboriously build up your cash stash. Instead, try to get $500 in the bank to cover the small emergencies, and make sure you have access to at least some credit to help you meet bigger setbacks while you get on track with retirement savings and debt repayment. Once your toxic debt is paid off, you can start funneling the money you were using to pay that debt into your emergency fund. Already have an emergency fund? If you have three months' worth of expenses saved up, consider boosting that to six months' worth. Set up automatic transfers from your checking to your savings account to build up your fund painlessly.

 

The role of insurance is to protect you against catastrophic losses. It's not meant to cover expenses you could easily pay out of pocket. So ditch the cell phone insurance, and make sure you have the coverage that actually matters: renters insurance if you're renting (your landlord's policy doesn't cover your stuff), health insurance if you can possibly afford it (a high-deductible policy can get your premiums down), adequate liability coverage on your home and cars

($100,000 should be the minimum you buy; otherwise, buy an amount at least equal to your net worth). If your employer offers long-term-disability insurance, sign up. If you have people who are financially dependent on you, such as minor children or a spouse who needs your income to pay the mortgage, you probably need life insurance as well. All these policies can protect you or your family against financial disaster. If you're finding it tough to pay all the premiums, try increasing your deductibles on your property insurance to $500 or $1,000. Being willing to cover this much of any loss can lower your premiums by 20% or more. Adequately covered? Boost your deductibles even higher, if you've got cash in savings to cover the bill in case you have to make a claim. And look into an umbrella insurance policy, which offers $1 million or more in liability protection. If you're a homeowner or have a teenage driver, this coverage can give you extra peace of mind for about $300 to $400 a year.