The Basics of Retirement When You Are In Your 20s

When you are in your twenties you should be doing thing to start getting ready for retirement.  It is never too early to start getting ready for retirement.  There are some basic things to do that will help you to prepare for retirement.
Most people in their twenties are broke, that is okay you can still help get your retirement savings going.  This is the time in your life when you need to get your act together.  You need to start saving and stop spending.  This is the time that you can create good financial habits and get rid of your bad financial habits.          
Time is on your side when you are in your twenties.  If you do get your act together, create a budget and stick to it, you can reach financial independence long before your friends.  That is a good feeling getting a leg up on your finances over your friends.  Not that you are in competition to reach financial independence first, but if you do then you are in a position to give your friends some pointers on how to get to the point of financial independence as well.
Most people in their twenties do not make much money.  This is just a fact of life. Even if you graduated college and have a degree chances are you are not making the amount that you thought you would be.  You do not have as much experience as others in your field and it does take time to get to the point where you are making what you thought you would be making.
Do not despair.  If you start saving for retirement now you will be very thankful for it later in life.  If you start saving when you are as young as 22 years old, putting only about four thousand dollars in the retirement savings account a year you could easily have a million dollars by the time you retire.  If you wait even ten years and then double the amount you put in to eight thousand dollars you will not make it to a million dollars when you retire.  The interest on the account adds up quickly and putting in twice as much starting ten years later you will not have the interest that you would have had if you started in your twenties.
The basics of retirement savings in your twenties is just that you do it.  Put something away every month.  You may not have much money to put into your retirement savings account, but every bit that you put into your account will accrue interest and make money for you.  You will be happy you started in your twenties when you retire and are able to live comfortably.

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