I got an mp3 via email of a radio talk show (if someone can identify it, I will post credits). Listen here. He outlines it perfectly. In order of importance.
- Reduce your expenses to within your means
- Eliminate Debt
- Establish an Emergency fund of 6 months pay
- Save for future purchases
- Use savings for home down payment
Nobody wants to hear bad news, news that they can’t have something they want. However, its what’s best long term.