Building a nest egg takes planning, hard work, diligence, and time. And according to the investment research company Morningstar, only about 25 percent of working American households are on track for retirement. It goes without saying that in order to build a nest egg, you have to save money, but what specific actions should you take to prepare to live comfortably in retirement?

Pay off debt

Start by paying off debt and establishing an emergency fund of three to six months of expenses. Once this is in place, you won’t need to take from your retirement savings to pay for unexpected costs that pop up in life.

Boost your Savings

Increase contribution rates to your 401(k) and other retirement plans by one percent of your income every year. The goal should be to invest 15 percent of your annual income. If you invest up to the company match in your 401(k), invest in a Roth IRA.

Compound Growth is Key

When it comes to saving, time equals money. And it’s never too soon to start investing. The earlier you start, the longer your money has to grow. This concept of giving your investments more time to grow is called “compound growth”, and it’s a tried-and-true method for building a sizeable nest egg.

Plan Your Life to Match Your Financial Goals

In other words, adjust your standard of living. If you make a financial plan and then live your life according to that plan, you’re going to be far better off in the long run than if you build a life and then try to work a financial plan around your comfortable standard of living. A good place to start is by examining your budget and expenses in detail. For example, how many unused memberships and subscriptions can you eliminate?

Practice Patience

Investing isn’t a smooth path to wealth. Expect some bumps along the way. During a typical working career, an investor can expect to experience eight to 12 poor market years.

Baby Steps and Discipline

You can’t go from couch potato to running a marathon in one day, so you shouldn’t expect such a dramatic shift in your financial portfolio either. Achieve financial security and prepare for retirement by taking small actionable steps and practicing discipline when it comes to saving.