Retirement is a topic that is commonly ignored when you’re young. Why think about retirement while you’re in your 20s and early 30s? It’s a stage in your life that is not even close to happening anytime soon. But if you start planning and saving now, you’ll be thanking your younger self in 30-40 years.

Spending Habits – Whether you’re just starting your first career, or heading to a new job, start saving immediately within the first few paychecks. Putting money aside and cutting back on the fancier lifestyle will help you develop good money management skills. It’s a lot easier to get used to a lesser paycheck now than to cut back later in life.

Compounding Interest – With certain savings accounts you can earn compounding interest. The money that you deposit will earn interest, and that new total balance will earn more interest the following period. The earlier you start putting money away, the more compounding interest you can earn.

401(k) and Free Money – If you are working for a company that offers 401(k) plans with company matching, don’t think twice about starting one. Not only do they help you set up a retirement account for yourself, but they give you free money towards it. After you put in a certain amount each month, a certain percentage will be matched, without being taxed. Again, the earlier you start, the more free money you can earn.

Lack of Job Security – Nothing in the world is guaranteed, besides death — and taxes of course. After being hired to a new job, know that your future at that company will never be 100 percent secure. Change is inevitable and events can take place that will change your career path. Setting up a retirement account early can help you out down the road if you ever happen to get laid off. You may not be using the money for retirement like planned, but at least you won’t be financially struggling in-between jobs.

There is no reason for anyone to not start a retirement plan as soon as they get their first career, or high paying job. Yes, you will be taking home less money each pay period, but you will have security in times when you don’t have a job. Start planning today by contacting one of the many expert accountants at Berkow, Schechter & Company LLP. Learn more about retirement and how to save by calling (203) 356-1061 today!

Don’t forget to follow us on Facebook, Twitter, and Google+!