30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances

Part I. Find Your Baseline

Jim, one of my good friends, had a deathly fear of going to the doctor, as many men do. Having enjoyed his share of beer and rare steaks, he was sure that a diagnosis of sky-high cholesterol would consign him to a life of broccoli and flaxseed. Jim also feared that bad genetics were another strike against him, as his father had encountered several serious health problems before the age of 70. Jim figured that enduring the periodic anxious thought about his health was preferable to visiting the doctor and opening a Pandora's box of health concerns.

Eventually, Jim's chronic heartburn led him to break down and schedule a doctor's appointment. Much to his surprise, Jim was in better shape than he had imagined. Yes, his doctor did recommend that he watch his fat intake, get more exercise, and cut out black coffee. But Jim's cholesterol level was within normal range, his weight was good for someone his age, and his ticker was fine. After hearing this good news, Jim was a little like Mr. Scrooge on Christmas morning. He began running 5 and 10Ks, learned to love oatmeal, and now prides himself on looking a lot younger than his 45 years.

Much like Jim, many people are so terrified about the state of their finances that they don't even want to schedule a checkup. They'd rather not know anything about their financial picture than find out that they're just a few paychecks away from financial ruin.

Yet once they get over the fear of the unknown and see the facts of ...