Making retirement saving a priority is the recognition that it’s easier to go without now (when you’re young and able-bodied) than at the end of your life when your options are fewer. Unfortunately, recent surveys suggest that 57 percent of Americans feel they are behind on their retirement savings. But it’s never too late to turn that ship around.

1. Learn to delay gratification. Almost any budget has room to trim expenses. Are you paying for a convenient but unnecessary data plan on your smartphone? Getting your money’s worth from your gym membership? Spending a lot on books and music downloads instead of borrowing from the library? All of that adds up to a lot of money spent in the long run — you have to decide whether it’s all worth it.
2. Start small but start early. The younger you are when you open your first retirement account, the better off you’ll be. If you start your retirement fund when you’re 25, your contributions have a full 40 years to grow. If you put $100 into your account every week, with a modest 6 percent return in the stock market you’ll end up with about $867,000 at retirement. Not bad, considering you’ll only have deposited $208,000 of your earnings.
3. Don’t count on a pension. Just because you’re a member of a public employee union doesn’t mean you don’t have to save for retirement. Data published by Barron’s show that eight states have enough money to cover only two-thirds of their pension liabilities, and thirteen more are only 80 percent funded. That means millions of Americans will not receive what their unions have promised them. Even non-unionized companies have bankrupted their pension plans in the unstable economy. Take responsibility for your own future and open an IRA right away.
4. Increase saving by 1 percent. It isn’t such a big increase that your monthly budget will be significantly affected, but over time the magic of compound interest will make your savings grow noticeably faster.
5. Play catch up. Even if you’re no spring chicken, you still have time to grow a decent nest egg. Experts suggest a baseline savings rate of 6 percent of your gross salary — and build from there as soon as you are able. And once you’re over age 50, the IRS raises your 401(k) and IRA contribution limits, so you can save even more tax-free.

This year, vampire patriarch Carlisle Cullen from the Twilight book series tops the list with an estimated net worth of $34.5 billion. It helps that he’s had 370 years to build up his bank account, but Forbes chalks up Dr. Cullen’s theoretical success to very, very, very long-term investments.

Even if you aren’t immortal, you can borrow some of his wealth-building strategies to watch your own money grow, like these tips:

• Live frugally. Despite an arguable need for one, the family does not own a private jet, preferring instead to fly commercial. And while they have collected several expensive sports cars, the bulk of their flashiest gas-guzzling vehicles spend most of their time in the garage while the family galavants in a much less conspicuous Volvo.
• Avoid the trap of being house rich and cash poor. The Cullen family home is valued at $3 million — less than .009% of the family’s holdings. While it would be difficult for most people to find suitable housing on that kind of budget, buying less house than you can afford is a great way to free up money for other uses.
• Plan ahead. Not all families are lucky enough to have a daughter who can see into the future. But developing a solid investment plan can help your own money accumulate faster than if you stuff it in a mattress. Remember: Few people get rich by accident.
• Look long term. The Cullens use their unending lifespan to let compound interest on their investments work its magic. However, even if you have only 30 years until retirement, that’s enough time in the stock market to see some serious gains.

Unfortunately, it cuts both ways. When the market is down in January, it’s a historically accurate predictor that stocks will perform poorly over the rest of the year as well:

A down January is a bad omen for the stock market. Yale Hirsch of the The Stock Traders Almanac suggests that since 1950, every down January in the S&P 500 preceded a new or extended bear market, or in some cases, a flat market. They go on to further suggest that down January’s are followed by substantial declines averaging -13%.

So far this month, the S&P 500 is down 1.4 percent since January 4 (the first day of 2010 that the stock market was open), but there’s still a full week of investing left in January. Keeping in mind there are no guarantees when it comes to investing, January is a great time to put money into undervalued stocks — especially if you’ve put off making your IRA contribution until now.

While $1,000 may seem like a genuine chunk of change, in reality it’s not hard to save up that much with a little discipline. You’d save that much by giving up your daily $4 latte for eight months, or by forgoing your $100-a-month premium cable package for less than a year. But the real question is, what’s the best use for that money?

If your first thought is “shopping spree” or “ski vacation,” we offer the following alternatives:

1. Pad your emergency fund or retirement account. The first tip is also the most obvious — if you don’t have a savings account with at least six months of expenses (enough to cover stuff you wouldn’t want want to go without, like your mortgage or rent, utilities, health insurance premiums, and groceries), you probably know you should. Otherwise in the case of job loss, you’ll have to dip into your 401(k), which you know enough not to do. But having even $1,000 in the bank will go a long way toward paying those unanticipated bills, like emergency vet care or car trouble.
2. Open a high-yield savings account. Let’s go back to that idea of a ski vacation for a minute. By opening a money market account with an online bank, you’ll likely find better interest rates than if you were to sock that money away in a brick-and-mortar bank due to decreased overhead. That means you’ll reach your short-term goals faster, like taking that trip or buying a new car. You can find the best rates by browsing banks at Bankrate.com.
3. Pay down your credit cards. OK, we admit that this is the most boring option. But since you’re unlikely to find a no-risk savings account that offers a higher interest rate than what you’re paying on your balances, putting it toward any consumer debt is like an instant return on your money.
4. Invest in an index fund. If you’ve got the emergency fund and the consumer debt under control, then maybe now is the time to get into investing. Take a baby step toward making real money in the stock market by putting that money in a low-cost index fund. It tracks the overall state of the stock market, which makes it an ideal long-term investment.
5. Treat yourself. Do you have check marks next to all of the above? Congratulations — you’ve put yourself in great financial shape. Make sure you remember what you’re saving all this money for anyway and indulge a little.

And in the spirit of the holiday, take a minute this week to give thanks for your good fortune.

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.

In honor of the upcoming awareness campaign, here’s a roundup of posts Econ4U has previously published on the subject of retirement savings:

• Forbes.com recently wrote about the costly financial mistakes that young people most often make, typically through sheer laziness. No. 2 on the list? “Not Opening A Retirement Fund (As Soon As Possible).”
• A report by USA Today found that the U.S. government cannot make good on its obligations to future retirees without raising taxes or reneging on promises. Meaning: If you’re relying on Social Security or a government-backed pension, you need a Plan B.
• Investors shaken by last year’s stocks free fall stand to earn much smaller returns on their money (and consequently, a lower standard of living in retirement) if they invest too conservatively now that the market is showing signs of recovery, says The New York Times.
• Confused by the relative benefits of stocks versus bonds? Online financial resource Morningstar.com’s Investing Classroom will teach you the basics (for free!).
• Wells Fargo operates a “retirement boot camp” for people who are close to retiring but aren’t sure what giving up their day jobs will mean for their standard of living. Many participants end up delaying retirement to give themselves a chance to save more.

Like a college curriculum, you can advance from Stocks 101: Stocks Versus Other Investments up through Portfolio 502: Efficient Market Theory. Each section concludes with a quiz that earns you credits. With your credits you can buy free stuff, like a premium membership to their investing tips — which will come in handy once you know your stuff. So even if you’re not an investing novice, everyone can take something away from the program.

The stock market can seem daunting but it doesn’t have to be. Whether you’re investing megabucks for fun or squirreling away a few dollars a week for retirement, free online resources like these are great for allowing you to catch up to — and even surpass — your peers on a financial level.

The government offers several financial incentives to homeownership. From tax credits to deductible interest, buying a home and having a mortgage can reduce your tax burden significantly.

But renting makes a lot more sense if you aren’t tied to a geographical area — say by industry or family — because you have the freedom to move to where the jobs are without having to go through the process of selling your house.

Also, if you live in an area where housing prices are exorbitant, your monthly rent payment might be half what a mortgage would be on an identical property. (This article from TIME magazine explains the concept of price-rent ratios well.)

In areas with rent control, you would probably end up financially on the same footing or better as homeowners by renting long term.

A friend of mine from college grew up in a spacious Manhattan loft that his family has been living in since the 1970s. They pay a shocking $400 per month in rent. Even though they have built no equity in their housing, assuming they’ve invested the extra money they’ve saved by not paying a mortgage, they could be in a very rosy financial picture indeed. (Especially considering how much better the stock market has performed over the past 30 years than the housing market.)

Houses do have emotional value that apartments do not, but as far as finances go, there are several sound reasons to rent. The $8,000 home buyers credit that expires soon is tempting, but as always, consider all angles and read the fine print before you commit to a life-changing financial decision.

Buying an occasional lottery ticket for fun isn’t a terrible idea. At least if being virtually guaranteed to lose is your idea of a good time. After all, it’s pretty much like making a non-tax-deductible donation to the government, and if you only buy one or two every few weeks then you aren’t spending too much anyway.

But what happens if you’re lucky enough to win? The Seattle Times had an interesting article yesterday with tips on what to do if you pick the right numbers. (The Times’ tips also largely apply to those fortunate enough to receive a windfall inheritance.) Surprisingly, many of the tips are good advice even for people who aren’t absurdly lucky:

Keep an emergency fund:

“One of the first things we recommend has nothing to do with investing at all,” said Dan Keady, director of financial planning for TIAA-CREF, which helps teachers, professors and doctors manage their money. “It is creating an emergency fund of six to 12 months.”

Once you have an investment strategy, you don’t want to disrupt it by constantly pulling funds to cover out-of-the-ordinary expenses. An emergency fund, usually with cash in money markets and other conservative, easily accessed accounts, helps investors navigate the unexpected.

Invest your money into a balanced portfolio, even if that means adding risk:

Investing is an individual exercise. Everybody has different goals, time horizons and tolerance for risk. About the only thing that is constant is the need for diversification, putting money into several kinds of investments to hedge against losses in any one.

Coming in to money will change your lifestyle, tax bracket, and investment strategies overnight. And if you allow the exuberance of winning the lottery (or pain of losing a loved one) to cloud your judgment, you could lose it all. And as this Bankrate.com article points out, losing it all after winning big is not uncommon:

Missourian Janite Lee won $18 million in 1993. Lee was generous to a variety of causes, giving to politics, education and the community. But according to published reports, eight years after winning, Lee had filed for bankruptcy with only $700 left in two bank accounts and no cash on hand.

So if you’re dumb enough to play the lottery but lucky enough to win, first “time a timeout” and don’t make any rash decisions, and then hire the right professionals to make sure you don’t wind up penniless.