9 Small Financial Steps That Will Pay Off Big in the Future

So many financial dreams are thwarted by the failure to act upon good intentions. Even if you commit to step 2 and free up money, using it wisely can be a challenge. Complete this sentence: I had every intention of ___________, but I got sidetracked or couldn't stick with my plan. That blank could be: (a) building an eight-month emergency fund; (b) investing in Roth IRA; (c) saving for a home down payment; (d) paying every bill on time; (e) all of the above.

The solution is easy: Put your financial life on autopilot as a form of "forced" saving. Your 401(k) is a great example of auto-investing; with every paycheck, money goes into your retirement account. You can set up the same system at a discount brokerage or fund company to help you invest in an IRA, authorizing the firm to pull money out of your bank account weekly, monthly, or quarterly.

Autopilot is also a great way to save for a home down payment. Have $100 automatically transferred from your checking account to a bank savings account each month and in five years at 2 percent interest you could have more than $6,300 set aside. An FHA-insured mortgage requires a 3.5 percent down payment, so $6,300 would be enough to buy a $180,000 home.

And if you suffer from late-payment-itis, set up auto bill pay through an online bank account. This will save you those $25 late fees on credit card payments and lift your FICO score (on-time payment history accounts for 35 percent of your score).