Enrolling in your employer's 401(k) plan — a tax-advantaged retirement savings account that allows you to build wealth over time — is one of the simplest ways to invest.
"It's important for you to at least put enough in your 401k that you get the match if your employer offers one," McClanahan says. That means that, if you choose to put 4% of your salary into your account, your employer will put that same amount in as well, in effect doubling your contribution. But you only get their money if you put yours in first.
Next, you'll want to get in the habit of increasing your contributions consistently, either every six months, at the end of the year, or when you get a bonus or a raise.
It's also smart to consider alternate retirement savings accounts, such as a Roth IRA, traditional IRA, or health savings account, as experts say that relying on just a 401(k) plan may not be enough to fund your future.