Think about what your life was like 5 or 10 years ago. It probably looked a little different then it does now, right? Maybe you were still in school, or you weren't married yet and didn’t have any kids. You might even have had a different job and salary.

Here’s a look at ways to create wealth at the beginning or end of your career timeline and ways that you can  maximize your savings potential.

You’re a millennial. Rretirement feels a lifetime away, because it is (technically it is probably two lifetimes) and you're thinking what does that have to do with you? A lot, actually. Because you have the most opportunity when it comes to retirement. There should be no stopping you when it comes to building wealth because you have the one thing other generations don’t:time, and for once it is actually on your side.

Here’s a scenario: Let’s say you begin investing $200 a month at age 24. But your friends, who bought new cars and took dream vacations on credit cards, delay saving for retirement until age 34 while they pay off their debt. At age 64, you’d have around $1.7 million in retirement savings. However, your friends would only have $560,900. That 10-year head start makes you a million dollars richer!

If you’re in your 20s, you’ve got a great opportunity to create a solid foundation for your future. Don’t waste it!

Ways to start building wealth in your 20s:

Steer clear of debt. If you have debt, use our debt momentum model to knock it out of your life as fast as you can—student loans included. If Sallie Mae is hanging on your couch, as her to leave ASAP. 

 

Live below your means. Just say no to things you can’t buy with cash! Overspending every month can dramatically impact your ability to save for retirement.  Raise your standard of living slowly. This is not the time to grow leaps and bounds in houses or cars. Paid-for clunkers and small apartment rentals will do just fine while you secure your financial footing. 

 

Budget like you mean it —because your future depends on it. A monthly budget details where every dollar goes. Make sure your budget accounts for all your spending and include things like food, clothing, housing, bills and savings. Plus, a budget ensures you’ll have the money for the things that are important to you, like fun time and retirement savings. 

 

Start early. As you can see in the example above, it doesn’t take a lot of money to build a million-dollar retirement—as long as you start early! The earlier you can begin, the better! Even if it is say $50 a month or 1% of your salary. Getting started is the biggest step. That’s a wealth-building habit that will pay off not just in dollars, but in opportunities for you down the road.