You’re young, you just entered the working field and are beginning to work towards some sort of career. You’re looking at buying a house, a car, possibly getting ready to start a family. It’s far too early to start thinking about retirement, right? Actually, the general consensus is quite the opposite: most experts agree, far too many people worry about retirement way too late in their careers. Even people who think of the big picture are more apt to think about how they can progress their careers as they’re starting them, rather than what they’ll do when they’re ready to settle down and enjoy the twilight years of their life. While someone in this mindset might still end up starting to save earlier than others, they can often afford to begin saving much earlier.

When to Begin Saving

When should you start saving? As soon as you can afford to. Many companies offer retirement plans that far too many young people pass over and ignore. However, these simple plans can easily take a small portion of your paycheck and put it away without you even worrying about it. Leslie Haggin Geary suggested a rough amount of $2,000 a year in your 20s. That might sound like a lot of money, but it’s roughly $38 off of a paycheck each week. Additionally, good retirement plans from employers may include ways in which the employer matches a small portion of your contribution. Plans that match can help you begin to save earlier by allowing you to contribute less at first if that’s all you can afford, while still getting the same benefit of someone who puts in more. Still, any sizable portion of your paycheck might still feel like a lot, and that’s perfectly fine. Early on in one’s career, you might very well be living from paycheck to paycheck. In such a situation, your emphasis should be on figuring out how to scrimp savings in every possible place so that you can begin to save and have money to help you through potential rough times. The luxury of worrying about retirement is still a luxury at that point, but you shouldn’t forget about it.

The fact of the matter is that we’re too quick to pretend that we need that money, but, if we truly consider it logically, a lot of us can part with that amount of money weekly without cutting much, if anything. Your immediate priorities should certainly be concerned with ensuring that you have the money you need for the moment, and a healthy backup in case something goes horribly wrong, but putting a small amount of your paycheck into a company plan is a neat, tidy way of investing for your future without having to worry about it when other things occupy your thoughts.

What about Freelancers?

All of what I said is helpful for those who are advancing within a company, but as more young people begin careers freelancing (especially in this economy) they don’t have the luxury of signing a few forms and allowing their company to do the work for them. Susie Poppick on CNN Money offers some smart tips for Freelancers to begin their own retirement funds. Of course, Freelancers will still have to manage these themselves, but balancing one’s own funds and managing money is something that all freelancers will have to learn to do effectively if they want to live sustainable lives.

SEP-IRA funds are tax-deductible in the years in which you’re still adding and investing to them. This fact helps make saving for retirement earlier even more sustainable, by allowing you to use money you would not otherwise have instead of worrying about your usable income. The specifics of the advice can be found here: http://money.cnn.com/2010/12/23/pf/saving/freelancer_retirement_plans.moneymag/index.htm

Ultimately, the key here is to think about your retirement. Whether or not you’re ready to begin investing a decision that only you can make, and you would be wise to research the options available to you. Keep in mind of the opportunities available to you, the important thing is simply to not forget. If you’re not in a situation conducive to saving right now, then look out for the potential whenever you can. Your mindset should be similar to that of when you’re simply trying to save money: look for places to cut unnecessary things, be frugal. Save well and look forward to that future when you can settle down comfortably and focus on living the life you want when your working years are past you, don’t let it creep up on you later.