Saving for the future is something we all know we should do. But getting started can feel overwhelming, and it can be tough to consider retirement when you’re a young professional. When it comes down to it, though, the best time to start preparing for retirement is right now.

The earlier you start saving, the better off you’ll be. And if you need an occasion to inspire you to jumpstart your savings plan, before end of year is the perfect time. If not now, when? In my 30 years of experience as a wealth advisor, I’ve helped a great many clients save for the future and plan for retirement. Here are a few tips to help you get started:

1.) Consider Inflation and Rising Prices

The reason that this exact moment is the best time to start saving isn’t just that the earlier you start, the more savings you’ll accumulate. It’s that inflation and rising prices can have a big impact on your investments, and you’ll want to be proactive about factoring in those changes.

There is a “purchasing power risk” (cost of living) if your investments are not keeping up with, or outpacing, the rate of inflation. In this situation, your purchasing power diminishes year-over-year because inflation is higher than your overall investment return.

My top three pieces of advice for reducing this risk are:
 

• Think long-term with your investments and understand the risk/reward trade off for longer term investments.
• Consolidate any student loan debt to a lower interest-rate fixed option
• Lock in a fixed 30-year rate or 15-year rate on your mortgage

2.) Eliminate Interest and Late Fees

These expenses might seem negligible, but they can accumulate to a significant sum. When it comes to saving for the future, every bit counts.

Take this month as an opportunity to do an audit:

• Do you have variable rate credit cards? If so, focus on getting those balances paid off. Always pay the monthly balance of any current charges to avoid incurring interest or late fee charges.
• If you have memberships or subscriptions that offer longer-term contracts at reduced rates, and you actually use those subscriptions, lock in a longer contract to save on fees.

3.) Invest early and often

Investing can be intimidating, but I recommend getting started early and being consistent. Investing for your future doesn’t have to be prohibitively expensive: many times, you can start investing for $50-$100 a month. And once you have that money invested in a new asset and aren’t used to seeing it in your checking account, you won’t miss it. You’ll be “paying yourself first.”

When you begin investing, be sure to educate yourself on where your money is going. Buy the things that you actually use and see other people using. I also recommend investing in a diversified portfolio to start.

In terms of retirement savings, take the three-bucket approach: taxable, tax free, and tax deferred. Your employer retirement plan is a good place to start and often includes a company match. You’ll be able to put more dollars in versus a standard Roth or traditional IRA contribution. Start contributing at least as much as your company is willing to match—if you don’t, you’ll be leaving free money on the table.

4.) Think Long-Term…But Don’t Jeopardize Short-Term Security

It can be tempting to pour money into retirement accounts, but be sure to not jeopardize a solid cash reserve or short-term savings needs for the long term. When you’re younger, you may need more access to your investments for things like home purchases, automobiles, etc. It’s important to understand your unique timeframe for needing access to your money. With investments, you’ll want to have a clear idea about your timeline, as longer-term investments will fluctuate in value and have a much greater chance, historically, of outpacing the cost and rising effects of inflation.

If you aren’t sure how to determine what to save and what to keep on-hand, a financial advisor can help you put together a plan and really understand how much you can afford to save on a monthly basis. This amount can then increase annually—at least as much as any raises you receive, or according to the inflation rate.

No matter how you choose to begin saving, now’s the time. And as tempting as it is to “set it and forget it,” I always recommend reviewing your investments at least once a year. Preferably twice! This will help you track profits and determine if any sectors have run their course. Take these opportunities to rebalance your portfolio, review whether your savings plan still makes good sense, and ensure you aren’t taking on more risk than you’re comfortable with.

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Faron Daugs, CFP, is founder & CEO of Harrison Wallace Financial Group.