Financial Security Begins When You're Young

When you tossed your mortarboard in the air at graduation, you probably weren’t thinking about the day you would retire. But planning for retirement starts decades before you ever leave the workforce. Ideally, it begins with your first adult job and continues throughout your career. Taking steps to ensure your success should be a priority.

Defining Goals

You can’t get where you want to be if you don’t know where you’re going. Setting goals should be your first step once you start working, even though some of those goals may change over time. Set short-term goals for wants that are a few months or years away, such as saving for a car or starting an emergency fund. Mid-term goals have a longer time frame. They might include paying off student loans or saving for the down payment on a house.

Long-term goals are far in the future. Saving for retirement is the goal that will take the longest and require the most money. Starting to save early in your career is your best route to success.

Choosing a Career

Earning potential is important when you’re choosing a career, but it isn’t the only thing to consider. Job satisfaction is just as important if you hope to thrive. Start by researching jobs in a field that interests you and look at the long-term career prospects.

Consider whether there are opportunities for travel if that is important to you — or the ability to stay local if it’s not.

Saving Smart

Take advantage of any tax-advantaged savings opportunities for which you’re eligible. Your employer’s 401(k) plan, traditional and Roth individual retirement accounts, and health savings accounts (HSAs) offer tax benefits that can help you accumulate savings.

Networking

Joining professional organizations will help you meet people in your field. Interacting with others who have similar interests could lead to new career opportunities.

Managing Finances

Your success at saving enough for a secure retirement will ultimately depend on your ability to prudently manage your finances. By living within your means and keeping your spending in line with your financial obligations, you will have the best chance for achieving your retirement goals.