utting away 15 percent probably seems daunting. It doesn't have to be.

Instead of putting away 15% immediately, work up to that figure gradually. Set up an automatic withdrawal from your paycheck to be deposited in your 401(k). If your employer doesn't offer a 401(k) set up an IRA and have the

Do you have 30 to 40 years until you retire? If so the miracle of compound interest can be harnessed to ensure prosperity when you do. What is compound interest? Compound interest refers to the fact that whenever interest is calculated, it is based not only on the original principal, but also on any unpaid interest that has been added to the principal. The more frequently interest is compounded, the faster the balance grows.

A potent example of its power comes from a history lesson most of us learned as children. When the Dutch arrived in what is now New York City in 1626 they purchased the land that would become New York from Native Americans in an apparently one-sided transaction for $24. The transaction was in fact one-sided but not in the way most people think. If the Native Americans had placed that $24 in a bank earning 6% interest their original investment would have been worth over $10 billion as of 2005.

The key to putting this immense power to work is to start saving immediately. And no matter what your salary you must figure out a way to sock away at least 15 percent of your pre-tax income.

If you aren't saving any of your income stepping up to the plate and putting away 15 percent probably seems daunting. It doesn't have to be.

Instead of putting away 15% immediately, work up to that figure gradually. Set up an automatic withdrawal from your paycheck to be deposited in your 401(k). If your employer doesn't offer a 401(k) set up an IRA and have the m

unpaid interest that has been added to the principal. The more frequently interest is compounded, the faster the balance grows.

A potent example of its power comes from a history lesson most of us learned as children. When the Dutch arrived in what is now New York City in 1626 they purchased the land that would become New York from Native Americans in an apparently one-sided transaction for $24. The transaction was in fact one-sided but not in the way most people think. If the Native Americans had placed that $24 in a bank earning 6% interest their original investment would have been worth over $10 billion as of 2005.

The key to putting this immense power to work is to start saving immediately. And no matter what your salary you must figure out a way to sock away at least 15 percent of your pre-tax income.

If you aren't saving any of your income stepping up to the plate and putting away 15 percent probably seems daunting. It doesn't have to be.

Instead of putting away 15% immediately, work up to that figure gradually. Set up an automatic withdrawal from your paycheck to be deposited in your 401(k). If your employer doesn't offer a 401(k) set up an IRA and have the

land that would become New York from Native Americans in an apparently one-sided transaction for $24. The transaction was in fact one-sided but not in the way most people think. If the Native Americans had placed that $24 in a bank earning 6% interest their original investment would have been worth over $10 billion as of 2005.

The key to putting this immense power to work is to start saving immediately. And no matter what your salary you must figure out a way to sock away at least 15 percent of your pre-tax income.

If you aren't saving any of your income stepping up to the plate and putting away 15 percent probably seems daunting. It doesn't have to be.

Instead of putting away 15% immediately, work up to that figure gradually. Set up an automatic withdrawal from your paycheck to be deposited in your 401(k). If your employer doesn't offer a 401(k) set up an IRA and have the

ver $10 billion as of 2005.

The key to putting this immense power to work is to start saving immediately. And no matter what your salary you must figure out a way to sock away at least 15 percent of your pre-tax income.

If you aren't saving any of your income stepping up to the plate and putting away 15 percent probably seems daunting. It doesn't have to be.

Instead of putting away 15% immediately, work up to that figure gradually. Set up an automatic withdrawal from your paycheck to be deposited in your 401(k). If your employer doesn't offer a 401(k) set up an IRA and have the

utting away 15 percent probably seems daunting. It doesn't have to be.

Instead of putting away 15% immediately, work up to that figure gradually. Set up an automatic withdrawal from your paycheck to be deposited in your 401(k). If your employer doesn't offer a 401(k) set up an IRA and have the money automatically deposited there. You can invest a maximum of $4,000 for an IRA and $15,000 for a 401(k) per year. You can also invest $4,000 annually in a Roth IRA alongside any other investments you make.

Start deducting 1% of your paycheck to be deposited in your account. You probably won't even notice the difference. Then next month up your allocation to 2% of your paycheck. Then in month 3, 3%, and so on. 15 months from now you'll be saving 15% of your salary and because you implemented the change gradually your spending habits will have changed to accommodate the savings automatically.

Next step is to decide what you want to do with the money your saving. If you're comfortable investing and dedicated to making your money work for you, you'll have plenty of ideas on how to do this.

For anyone who doesn't want to spend their time this way, luckily there is a nice alternative. Vanguard, Fidelity, and most other major mutual fund companies now offer a product often called lifecycle funds. Although the specific name for the funds will vary depending on the company.

Estimate when you'll want to retire 2030, 2035, 2040 etc... and the fund automatically reallocates