If you’ve just landed your first job, you may not be thinking about retirement. But starting a 401(k) early in your career can provide numerous benefits, both now and in the future. Here are seven reasons why starting a 401(k) early is a smart financial move.
1. Compound interest
The earlier you start contributing to your 401(k), the more time your money has to grow. Even if you can only afford to contribute a small amount each month, the power of compound interest means that your contributions will grow over time. By starting early, you can take advantage of compounding to build a substantial retirement nest egg over the long-term.