If you’re hoping to enjoy a comfortable retirement, Social Security probably won’t be enough on its own. While your monthly benefits might serve as an important source of income, many retirees need additional funds to cover housing, healthcare, travel, and other expenses.

That’s where your savings come in. And if you don’t have access to a 401(k) through your job, you can lean on an IRA to build a retirement nest egg. You won’t get the benefit of an employer match. But you may get to enjoy a lot more investment choices.

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One perk of saving for retirement in an IRA, as opposed to a 401(k), is that you can hold stocks individually. But choosing the right stocks can also be stressful.

Picking stocks that don’t perform as expected isn’t necessarily the biggest IRA mistake you might make, though. Rather, the biggest way to set yourself back in the course of saving for retirement may be a late start.

Starting early is one of the biggest advantages you have

When it comes to retirement savings, time is one of your most valuable assets. The earlier you begin contributing to an IRA, the longer your money has to benefit from compounded growth. That means not only can your original contributions earn investment returns, but those returns can generate returns of their own over many years.

Even relatively small contributions made to an IRA in your 20s could go a long way over time. Waiting until your 40s or 50s often means you’ll have to save much more each year to reach the same retirement goal. So while it’s never too late to start investing, every year you delay is another year your money isn’t working for you.

Of course, it’s easy to see why you may be inclined to put off IRA contributions. In your 20s, you may be saddled with student loan debt and stuck with entry-level wages.

But waiting could cost you in the form of lost returns. And the impact there could be far worse than choosing one or two stocks that don’t meet your expectations.

You don’t need a big paycheck to begin investing

If you’re hesitant to contribute to an IRA in your 20s, you don’t have to max out your contribution to make an impact. Contribute $30 one month and $40 the next month if that’s all you can afford.

It can also help to look for money that’s already hiding in your budget. Cutting back on subscriptions, eating out a little less often, and canceling services you can do without could all add up to larger IRA contributions. Then, as your income grows over time, you can gradually increase your contributions.

An IRA is one of the most effective tools you have for building retirement wealth. Starting early could put you in a much stronger financial position by the time retirement arrives.

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