For a lot of people, retirement may feel like it’s light years away. In reality, every day that passes gets us closer to those golden years, when we hope to bask in the sun with a magazine in one hand and a pina colada in the other. Saving for retirement may not seem like a priority when bills are due now and you are barely scraping by. And retirement savings may take the back burner when other priorities push themselves to the front of the line. But one day, the action and commitment you make today will pay you dividends in your future. There are millions of reasons you shouldn’t wait to get going. And most of them are because of compounded interest.

The money you invest into retirement accounts grows over time, not only because of the money you put in (principal), but because of the interest earns makes time and time again. A modest average return on your investment (interest earned) would be somewhere in the ballpark of 6-8% yearly (again this is on average. Some years are better or worse than others). When interest is earned, that amount it is added to the principle. So every time your account earns interest, it earns on an increasingly high amount. This same effect over and over again is what produces those pretty gains you will see over time. The first number of years may not look like much, but the further along you go, the higher the amount of interest you will earn. This is why it is crucial to make saving for retirement a priority as soon as possible. The difference in the amount of money that is earned in later years is staggering when you start early. Search for compounded interest calculators online and enter your info to get a better idea of what you are looking at.

So where do I start you ask?

If you are new to investing, find a fiduciary financial advisor that would be willing to help you define your goals and create a plan. Try to stay clear of advisors that work off of commission for products they sell in their brokerage. Again, do some research into the difference and decide for yourself what you are most comfortable with.

Many brokerages have targeted funds (retirement accounts that are set for a target retirement date) that start out more aggressive and become more conservative (less risky investments) as you near retirement age. These act as more “set it and forget it” type accounts if you are not looking to be to hands on but still want to reap the benefits of investing.

There are multiple types of retirement accounts that each have their own set of rules. To understand the details of each it would be best to consult with a professional who can help you understand which would be best for your situation. There is also a ton of information online as to the intricacies of each. You can start by researching some of the more common types: Roth IRA’s, traditional IRA’s, 401k, 457 accounts, and SEP and Simple IRA programs (for the self-employed). Also, research what your employer offers as far as accounts and company matches. Money that your company will match can be beneficial and viewed as “free money” you don’t want to leave on the table.

There is also a misconception that you need to have a lot of money to contribute to retirement. What really matters is a consistent effort, even if the amount is small. As time goes on and you make saving for retirement a habit, you will see it gets easier to find the money to put away. Even if you only start with a few dollars a month, it is the habit that you are forming that is most important. Some find it helpful to set an automatic withdrawal as if it was any other regular bill. Retirement accounts are not the only way to save. Some look to passive businesses, real estate rental income, or other side investments to help provide or supplement their retirement income. Whatever it is you choose to do, create a plan and make it a priority to save. Your future self with thank you.