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Mistake #6: Not Taking Advantage of Automating EVERYTHING
I have preached the importance of "making it automatic" for years, but I still see so many people paying bills the old-fashioned way. (Okay so this isn't a new mistake, but it's an even bigger mistake now that we have so many electronic options for managing our money.) When you don't automate your finances, you may forget to pay your bills on time, which, as I've mentioned, will not only negatively affect your future interest rates and credit score but will also cost you a fortune. If you miss a payment on an account with a $500 balance, the late fee could be as much as $50. If you exceed your credit limit at the same time, the fee could be $100. In my experience, many people who haven't automated their finances tend to have underfunded savings accounts, leaving them financially unprepared for an emergency, retirement or helping with their children's future.

The Fix: Bottom line: The one way to create lasting financial change that will help you build real wealth over time is to...make your financial plan automatic!! Set up direct deposit for your paycheck so that you don't have to waste any time going to the bank; also set up an automatic payroll deduction to fund your retirement account, ensuring that you remember to pay yourself first. Finally, use your bank's online bill-paying service to automatically take care of your monthly minimum credit card payments and other bills. Follow the steps listed in the Automatic Millionaire 2.0 diagram—and you will truly have a foolproof, no-brainer "set it and forget it" financial plan that, I promise you, will work.

Bach book cover David Bach is the author of Debt Free for Life: The Finish Rich Plan for Financial Freedom and founder of FinishRich.com.

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Please note: This is general information and is not intended to be legal advice. You should consult with your own financial advisor before making any major financial decisions, including investments or changes to your portfolio, and a qualified legal professional before executing any legal documents or taking any legal action. Harpo Productions, Inc., OWN: Oprah Winfrey Network, Discovery Communications LLC and their affiliated companies and entities are not responsible for any losses, damages or claims that may result from your financial or legal decisions.

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