Welcome to this week’s edition of our Tuesday Top 5, our new weekly tips post to help you manage your money in five easy steps.

Today we tell you the five things you need to know if your end goal is retiring a millionaire. Sound like a pipe dream? It’s not if you start early enough.

1. Think you don’t earn enough money to become the next Scrooge McDuck? Think again. Even if you’re only making $30,000 in your first job out of college, you can still do it with enough discipline. CNNMoney’s calculator says that if you stash $3,300 — 11 percent of your income — in a tax-deferred account like a 401(k) every year, you’ll hit your first million in just under 42 years (assuming the stock market’s average 8 percent annual return continues). While 42 years may sound like an eternity, isn’t being a millionaire worth it?
2. Commit to savings today! Spend less than you earn and put the difference in a savings account. There’s a reason Einstein called compound interest “the most powerful force in the universe.” If you’re in your early 20s, this is the time to start.
3. Research your options. There are several types of savings accounts that differ by degrees of risk and reward. A standard savings account allows regularly scheduled deposits and permits withdrawals at any time. Interest rates are relatively low but there is no risk of losing your savings.  A certificate of deposit (CD) may offer a higher rate of interest than a savings account; however, putting your money in a CD makes it inaccessible for the length of the deposit unless you pay a penalty and lose any interest earned. Like checking and savings accounts, CDs are usually FDIC-insured, meaning that you are covered if the bank fails.
4. You don’t just need money in the far-off future. A good savings strategy covers short-term needs as well: things like emergency expenses, buying a car, and making other big purchases. Keeping about $1,000 liquid is a good idea so you can have instant access to it in case of an emergency — this will help you avoid putting it on plastic.
5. Once you have achieved your targeted principal amount, it’s time to explore investing. Deposits placed in other types of investment vehicles will promise a higher rate of return but they do involve more risk than a savings account. Keep in mind there’s no such thing as a 6 percent return on your investment with no risk, and you should run from anyone who promises you this or any other low-risk, high-reward scheme. Determine your risk tolerance and find an investment that suits your needs, be it stocks, bonds, mutual funds, or other ways of growing your money.

The biggest lesson here: Compound interest is your friend. Nurture that friendship and it will serve you well for life.