Saving for retirement can feel like an overwhelming goal, can’t it? Between the mortgage, groceries, childcare, and everyday expenses, it’s easy to push it off until “someday.” But here’s the thing: starting today, no matter how small, can make a world of difference later. Time is your biggest asset when it comes to retirement savings, and the earlier you begin, the more you’ll benefit in the long run.

1. Envision Your Ideal Retirement

Picture yourself in the future. Where are you? What are you doing? Are you spending your days gardening, golfing, traveling, or simply enjoying time with family and friends? Imagining your ideal retirement lifestyle is the first step in understanding what you’re working toward.

Once you have that vision, think practically. How much might it cost to make that dream lifestyle a reality? Tools like online retirement calculators can help you estimate how much you’ll need based on your goals, age, and income. If the number feels intimidating, don’t stress. This exercise is about giving you direction—not about perfection or having all the answers upfront.

By defining the kind of future you want, you’re setting your sights on a clear destination. That vision will guide your savings strategy and help you stay motivated as you take steps toward your financial goals. Every small action you take today builds the foundation for that brighter future.

2. Start Small—but Start Today

One of the most common barriers to saving for retirement is thinking you don’t have enough money to begin. The truth? Even small contributions can lead to significant results over time.

If you can only set aside $20 or $50 a month, that’s okay. What matters most is starting today. Over time, you can increase your contributions as your income grows, but the habit and momentum begin now.

Think about setting up automatic transfers to a retirement account, like a 401(k) or IRA (more on these in a moment). Automating contributions makes saving effortless and ensures you’re prioritizing your future self every month. And as a bonus, you won’t be tempted to spend the money elsewhere!

3. Take Advantage of Employer-Sponsored Plans

If your workplace offers a 401(k) or similar retirement savings plan, this is one of your best tools for building your future nest egg. Many employers even provide a match where they contribute additional money to your account based on your own contributions. For instance, they might match 50% of your contributions up to a certain percentage of your salary.

Not taking advantage of an employer match is essentially leaving free money on the table. If you’re not contributing to your 401(k) or aren’t contributing enough to get the full match, this is the perfect place to start. Even if you’re on a tight budget, increase your contributions to at least the matching level if possible. Over time, you can aim to boost this amount gradually.

Bonus tip for those new to 401(k)s: Contributions are taken from your paycheck before taxes, which reduces your taxable income for the year. It’s a win-win for your wallet.

4. Open an IRA

For those who don’t have access to a workplace retirement plan or want to supplement their 401(k), an IRA (Individual Retirement Account) is a fantastic option. There are two primary types to consider:

  • Traditional IRA: Contributions are made pre-tax, potentially lowering your taxable income, but you’ll pay taxes when you withdraw in retirement.
  • Roth IRA: Contributions are made with after-tax money, but your withdrawals in retirement (including the earnings) are tax-free.

The best option depends on your current income and tax situation, but the Roth IRA is especially popular for younger savers who expect their income (and tax bracket) to increase in the future.

Opening an IRA is easier than you might think. Most banks, investment firms, or robo-advisors will guide you through the process online. Once set up, make consistent contributions—even if they’re small. Many IRAs allow you to get started with as little as $50 or $100.

5. Cut Back on Expenses and Redirect the Savings

If money feels tight, finding room in your budget to save might require a second look at your everyday expenses. Small changes can free up extra cash, which you can redirect toward your retirement savings.

Start by reviewing your monthly spending categories. Could you trim down your subscription services? Switch to brewing coffee at home instead of buying from your favorite café every day? Or shop smarter at the grocery store? These tiny sacrifices might not feel like much, but added together, they can provide a boost to your retirement fund.

Cutting a $30 streaming subscription and redirecting that money into a retirement account could add up to thousands over time, thanks to compounding interest. Remember, it’s about making savings a priority, even if it means making small tweaks to your spending habits.

Think of saving for retirement as an investment in your future self. By starting now, even with small amounts, you’re empowering yourself to live your later years on your terms.