Below is my “top seven” list of things you can do to set yourself on a more prosperous track this year. But please, pretty please, don’t just stuff these items into a drawer.

Instead, be realistic. Pick a couple of actions from the list (I suggest no more than three). Then go to work immediately, this week if possible. You’ll notice that each item on my list requires only one step. No follow-up necessary. If you act now, you can sit back and watch the benefits accrue throughout the rest of the year. Ready to rock? Here we go…

1. Boost the yield on your “lazy” cash.

Banks and brokers adore customers who leave money idling in accounts that pay next to no interest. Don’t stand for it. Even with the recent rate cuts by the Federal Reserve, an Internet-based bank like EmigrantDirect is still paying 4.65% on money market accounts, with no minimum balance (800/836-1997 or www.emigrantdirect.com). Discount broker e*Trade (800/387-2331 or www.etrade.com) is even offering a luscious 5.05% on FDIC-insured deposits through its e*Trade Bank unit.

Like Emigrant, e*Trade has no minimum to open an account. Because of the brokerage’s wellpublicized financial difficulties, though, I advise you to remain strictly within the FDIC insurance limits ($100,000 per depositor).

2. Make the biggest contribution you can to a tax-deductible savings plan.

For most people, the most basic tax-favored savings tool is an employer’s 401(k) plan. If your employer offers any kind of matching grant to supplement your own contributions, treat it as free money. Grab as much as you can!

Furthermore, I generally advise folks to take their 401(k) contributions to the limit allowed by the plan before branching out into other kinds of investments. Quite aside from the tax shelter, the discipline of having a fixed sum taken out of every paycheck can work wonders. You’ll build wealth much faster than if you invest only when you’ve got “spare cash” on hand.

For 2008, the legal limit on employee contributions to a 401(k) is $15,500. (Over age 50, you can kick in an extra $5,000.) A similar limit applies to plans sponsored by nonprofits and government agencies. Depending on their income, selfemployed people can contribute up to $46,000 to an individual or “solo” 401(k), with an extra $5,000 allowed if you’re over 50. Virtually all brokerages and mutual fund families welcome individual 401(k) plans.

3. Close at least one mutual fund or annuity account that no longer meets your needs.

I'm a strong believer in long-term investing and low turnover. Don't shuffle investments for the sake of shuffling. In my experience, though, people tend to hang on to some investments too long. If, for example, you bought a so-called "emerging growth" fund in the late 1990s and it's still under water, 2008 is the year to move on. Upgrade to a more stable large-cap growth fund.

Fixed annuities paying renewal rates of 3% or less are also excellent candidates for the heave-ho. Often, you can swap these for a more competitive annuity in a tax-free 1035 exchange. For up-to-theminute annuity quotes, get in touch with broker Charles Cox, Jr. at UBS in Boston (800/225-2385, ext. 8307).

4. Build your holdings of high-dividend stocks.

2007 was an off year for the high-dividend strategy, largely because of troubles in the financial sector. However, many companies whose stocks made little headway last year are still churning out superb operating results. At today's higher yields, these champions are a better buy than ever. For details on My 3 Top Picks for 2008, click here to read my Special Report. It details three high-quality income investments with yields that have remained quite high, despite the recent rate-cuts.