Don't wait to start investing, says Suze Orman, personal finance expert and best-selling author of "Women & Money."
"The truth of the matter is, you should be investing more in your 20s than you do in your 30s if you can," she tells CNBC Make It. "The younger you are, compounding of money comes into effect."
She's referring to the power of compounding. In addition to earning money on your contributions, you also earn on returns on those returns over time. Because of this, your money grows exponentially. That means that if you invest a small amount and let it grow for decades, it will generally amount to much more than if you had invested a larger amount, but let it grow for a shorter period.
Orman gives the example of a 25-year-old who invests $100 a month in a Roth IRA for 40 years and earns a 12 percent annual return. When that person retires at age 65, their investment will be worth just over $1 million. If the same person were to start investing $100 per month at age 35, they'd only have around $300,000 by the time they reached 65. "Those 10 years cost you $700,000," Orman points out.