Making the most of your finances takes planning. To ensure you get where you want to go in life, you should be clear about your short-term and long-term financial needs and goals. And it's critical to establish priorities for reaching those goals.

The key to success is building a foundation to meet your basic needs, then concentrating on longer-term needs. When your priorities are in order, you can turn needs into goals by assigning them specific dollar amounts and time horizons. Think of your financial life as a pyramid. At the base of that pyramid are foundation needs —everyday requirements such as shelter, food, clothing, health care, taxes and other daily living items. Insurance is a part of the foundation, too. Adequate disability, long-term care, critical illness and life insurance coverage means you and your family's financial needs will be met if you are seriously ill, you can't work or if you die.

You should also establish an emergency fund.

Once your foundation is in place, focus on longer-term lifestyle needs. These include paying down the mortgage, saving for your children's education, retirement savings, money for vacations, and even building an estate to leave to your heirs or charity.