Start a 401k. Companies already have retirement plans in place to help you save for later, like the 401k. Take advantage of these retirement plans and their hidden benefits:

• Matching contributions: Most employers match you 50 cents on the dollar, at least for your first six percent of savings. Who would turn down free money?

• Immediate tax breaks: Because 401k money is taken out of your paycheck before taxes are withheld, you’ll shell out less to the government come April 15.

• Tax-deferred growth: Annual capital gain and dividends don’t get taxed either.

Try an IRA. For even more tax breaks on your retirement plan, start an IRA. With a Roth IRA, withdrawals you make once you’ve retired are tax-free, and you’re not required to make mandatory withdrawals after you hit 70. If you start a traditional IRA, withdrawals aren’t tax-free, but you only pay taxes on investment gains once you’ve retired and make your withdrawals.

Go 70-30 with stocks and bonds. If you’re starting early, you’ll make more on returns by putting money in the stock market. The more you invest, the more your savings will grow – and with enough investment, you can stay ahead of inflation and increase your purchasing power, which means even more savings for retirement. It’s tougher to beat inflation if you invest in bonds, so try splitting your portfolio 70-30, with most of your money in stocks. Shift the balance to 50-50 when you’re in your 70s and 30-70 when you’re in your 80s to protect yourself from economic downturn.

Save unexpected money. When you get money for your birthday, tax refunds, bonuses at work, or even find cash in your pants pocket, why go on a spending splurge? It’s money you didn’t plan on getting or didn’t think you had, so set that money aside for retirement as if it hadn’t suddenly materialized. The same goes for getting a raise. Try living as you always have and saving that extra money for retirement. It might be less fun than a cruise, but you can cruise around the world when you retire with a nice nest egg.

Careful with the plastic. Don’t trap yourself with credit card debt when you’re young. Only paying minimum credit card balances each month means you’re spending your retirement money on credit card companies’ interest rates. Pay as much of your bill as you possibly can within your budget so you can avoid credit card debt and save that extra interest money for retirement – and if your budget is small, keep the plastic in your wallet.

Scale down. Relocate to a place with a lower cost of living, or downsize your living arrangements to just what you really need. You’ll save on taxes, household bills and home payments or rent, and you can set the rest of the money aside for retirement.