Get into the saving habit early. Money you begin accumulating now will one day help pay for your wedding or the down payment on your first home. You’ll also want to create an emergency fund equal to three to six months worth of basic living expenses. When you consider all the demands on your monthly budget, the thought of setting aside money for long-term savings probably seems quite daunting. Fortunately, you have time on your side and that’s very valuable. The power of compounding will really pay off one day. Just $25 a week set aside over 15 years builds a net egg of more than $31,000, assuming a 6% annual return.

If you haven’t already, you should immediately enroll in your company’s 401(k) retirement savings plan. This will probably be the primary source of your retirement savings, so you should start early. Some companies match employee contributions to these plans, so not participating is like turning down free money.