Start with your employer's 401(k) match

If your employer offers a 401(k) with a matching contribution, contribute at least enough to get the full match. A typical match is 50-100% of your contribution up to 3-6% of salary. This is an immediate 50-100% return on your money before any market gains.

Why It Works

Employer matching is free money. Not contributing enough to get the full match is the single most expensive financial mistake most employees make. It also reduces your taxable income.

Tips

• Ask HR for your plan details: match percentage, vesting schedule, and investment options
• Start at the match level, then increase by 1% per year until you reach 10-15% of income
• If your plan offers a Roth 401(k) option, consider it for tax-free growth if you expect higher income later