Step1
Start investing as early as possible. Not only is this great because it will become a habit for the future but more importantly you can take advantage of the power of compounding interest. If you saved a $1000/year for 30 years you would have saved $30,000 but if you earned 8% you would have $125,024.60 at the end of the 30 years. However, if you saved $3000.00/year for 10 years you would still have saved $30,000 but with the 8% interest you would end up with only $46,041.42 because you lost 20 years worth of compounding. So even if you only put $25/month starting @ age 18 retiring @ age 67 you will have saved only $14,700 but you will end up with $184,027.62 assuming an interest rate of 8%. START TODAY!
Step2
Save consistently, set up an automatic draft with your bank into a savings or investment vehicle of your choice (consult your financial advisor to which would be best suited for you) this will help those of us who are not disciplined enough to take it out of our paycheck.
Step3
Take advantage of your employers retirement plan especially if they make a matching contribution. If its a qualified plan that means you can deduct the contributions you make and they are tax deferred, however that also means you will have to pay ordinary income tax on the entire amount when you receive distribution @ retirement. Also if you receive it before age 59 1/2 you will incur a penalty as well. Again you will want to consult a professional for the tax consequences of any investment.
Step4
One of the most important steps in making sure you have enough money during retirement is to enlist the help of a qualified professional to assist you in making wise investment choices and developing a strategy that fits your specific needs. Its important that you find one who is not just going to tell you what you should do but explain why.
Step5
As your grandma always said, "Never put all your eggs in one basket!" Never, Ever, Ever put all your money in a single stock. If you are going to invest in the market take advantage of the diversification and professional management of a mutual fund.
Step6
Save and invest your money as though Social Security will not be there. Its sad but there are many people out there that barely have enough to live off b/c they rely primarily on Social Security every month.
Step7
Saving is important but don't forget about inflation. Things that cost a dollar today will likely cost significantly more in 30-40 years so investing is almost a necessity.
Step8
Dave Ramsey says to "live like no one else, so that later you can live like no one else." Just b/c the Johnson's down the street bought a brand new BMW doesn't mean you need to buy one too. Imagine if you didnt have a car payment, and you could pay yourself that money to invest and save for YOUR future.
Step9
Don't forget to give. The old adage it is better to give than to recieve is true believe it or not. You will receive a blessing when you take a minute to help others. If you don't believe me just try it I DARE you.