When it comes to retirement planning, time is money—literally.

In other words, the earlier you start saving, the more money you'll have when you retire. However, that doesn't mean it's an all-or-nothing process. There are always financial strategies you can (and should) employ at any age.

If you’re in your 20s, you’re in luck. You have the most precious resource of all: Time. While there are absolutely money moves you can (again, and should) make in your 30s or your 40s to start on your retirement planning journey, the 20-somethings of the world have the luxury of watching small contributions turn into huge gains.

That said, don’t get complacent. Like your fleeting youth, time for retirement planning won’t always be on your side—so do not put off saving. Your 30-, 40-, 50-, and 60-year-old selves will thank you, with exponential gratitude.

This blog post will cover how to save for retirement in your earliest working years, from employing the most fundamental methods to utilizing more cutting-edge strategies.

Saving for retirement in your 20s

So, you didn’t start saving for retirement when you were 18. It’s okay, not every shred of hope is lost just yet.

We’re kidding—if you’re starting your retirement planning journey in your 20s, you’re right on schedule (and ahead of most Americans, unfortunately). Taking a serious look into retirement planning so early in your working years is commendable, but, oftentimes, the beginning of the journey is the hardest.

Line up ten 20-year-olds, and personal finances are likely to look vastly different for different people.

Maybe you’re paying down your student loans, and your entry-level job has got you living on a tight budget. Or maybe you have no debt, a high-paying job, and lots of disposable income. Maybe you’re somewhere in the middle.

No matter where you are financially, there are moves that everyone can make to set themselves up for a secure financial future. The bottom line: Start now!

1. Start contributing to a retirement account

With an average return rate of 0.06%, basic savings accounts don’t help your money grow. While it’s usually a good idea to keep some extra funds in a savings account for emergencies or big, once-in-a-while expenses, your retirement savings are best kept in a retirement savings account. (Who’da thought!)

If you have access to a company-sponsored retirement account like a 401(k), use it!

401(k)s and other company-sponsored retirement accounts come with a lot of advantages, particularly the possibility of an employer match. While not every company-sponsored retirement policy offers an employer match, matching is a common perk employers offer to incentivize employees to save for retirement. Employer matches are quite literally free money, given on the condition that you contribute to your retirement account first.

The 2022 401(k) contribution limit is $20,500. If you can afford to hit this max, great—but that’s a lot to lose from your paycheck every year. If you can’t afford that hit to your income right now, just make sure you contribute at least enough to get the full match if your employer offers one. If your employer does not offer matching, contribute whatever you can. Even $500 every year is better than nothing.

If you do not have access to a 401(k) or other company-sponsored retirement account, open an individual retirement account. These accounts, also known as IRAs, are available to anyone who can demonstrate income. Both traditional or Roth IRAs are perfect for part-time workers, independent contractors, freelancers, and 20-year-olds, since you can only open a 401(k) after your 21st birthday. And if you really want to start a robust retirement plan, you can open and contribute to both a 401(k) and an IRA.

2. Build retirement planning into your budget

Your 20s is the decade of habit-forming. To ensure you’re forming healthy financial habits, it can be seriously helpful to create a budget, no matter your annual income.

You can use budgeting apps, like Mint or Truebill, build an Excel spreadsheet, use the envelope method, or go back to basics and create a budget with pen and paper.

No matter how you track your budget, the crux of budgeting is measuring money-in and money-out each month.

First, factor in all your income streams: Your main job, side hustles, and any passive income channels. Then, add up the monthly expenses you can predict exactly: Rent, utilities, subscriptions, student loan payments, and so on. Then, add in monthly expenses you may need to estimate, like groceries, hobbies, restaurants, recreational shopping, and other activities. Make sure you distinguish which expenses are necessary, like rent and groceries, and which are luxuries, like restaurants and shopping.

Finally, see what income you’re left with, and decide how much you can contribute to your retirement savings each month. Treat retirement savings like one of your necessary expenses; if you miss a payment, your retirement savings will lose both that initial contribution and the compound interest it will accrue for the next four decades or so.

Remember: Even if you can only contribute $50 or so each month, that’s better than nothing!

3. Build credit

Building credit is essential for your long-term financial health. It will help you qualify for loans, get a house, or purchase a car somewhere down the line. However, because of high interest rates, credit card debt is one of the most expensive forms of debt, so make sure not to spend more than you can pay off.

That said, don’t be afraid of credit cards! Many credit cards incentivize you to use them by offering rewards like cash back on purchases, travel discounts, and other perks if you keep your account in good standing; this way, the benefits are usually worth the trouble of paying your monthly balance.

Oftentimes, you need to have built credit to be approved for a credit card. If this is your first credit card, this can land you in a bind: You need credit to get a credit card, but you need a credit card to get credit. Luckily, there are credit cards made for first-timers: Just search for the best beginner credit cards, and go from there.

Not all credit cards are built the same, so do your own research to see which one works best for your goals and lifestyle. If you travel a lot, research travel-centric credit cards. If you want the most cash back, research that.

4. Get insured

Insurance is the safety net we all need sometimes for emergency situations, and it’s critical for saving money in the long run.

If you shop around and find a plan that works for you, insurance can be more affordable than you think. If your employer offers health insurance, you’ll often have options for a plan with a deductible (a monthly payment) and a plan with no deductible.

Even if you have to buy an insurance plan out of pocket, it can end up being more affordable than covering medical expenses in an emergency. Ultimately, ask yourself if you’re willing to factor insurance costs into your budget, or if you want to risk going into debt in medical emergencies.

Additionally, renter’s insurance is also a smart choice if you rent your home. The cost of replacing stolen items or repairing damaged personal property can add up fast, so it’s good to have a failsafe. Plus, some renter’s insurance offers unique travel coverage that can protect your property while you are abroad.

5. Gain financial literacy

In most areas of your life, your 20s should be spent learning: Observing, questioning, experimenting, and practicing. Your financial life is no different.

Your fundamental understanding of and capacity to learn about finance is called “financial literacy.” Financial literacy isn’t about knowing every single term and memorizing the tax codes. Financial literacy is about being aware of the systems that are in place—like credit cards, retirement accounts, investing, and so on—and taking action to use them to your advantage.

Of course, it does help to have a basic understanding of financial terms and concepts, like compound interest, budgeting, and the different types of retirement accounts.

Thanks to the endless stream of content available to anyone with an internet connection, you really don’t need to memorize anything! Make your financial literacy journey work for you by consuming content on channels you already know.

Big YouTube watcher? Check out CNBC’s Make It or finance influencer Graham Stephan’s channel.

Love newsletters? Subscribe to Morning Brew or Robinhood Snacks.

Learn by reading? Make it a goal to read at least one article a week from Nerdwallet, the Penny Hoarder, or our blog, Table Talk!

You can start small. Just start now.

That's the bottom line: Start now. You have more saving power today than you will tomorrow, and tomorrow you have more saving power than you will the next day.

Don't let information overload or financial anxiety stop you from securing your financial future. Every small step makes a huge impact in the long run.