If you find yourself in a bind lately, you’re not alone. Even the people who make six figures a year can’t save their money. Why is it? People love to live beyond their means, keep up with the neighbors, and just don’t think about the future.

In 2005, the savings rate in the United States dipped to zero and has rolled into the negatives. This is the first time this has happened since the great depression. The main reason is people today just don’t think about their future.

Saving is a very simple concept and what most people don’t realize is how much you can save in the long run with just a few hundred dollars a month. IRAs, mutual funds, 401ks, and stocks can give you a really nice return on your investment. If you just take $100 for 40 years at a 12% return rate, your balance will be nearing one million dollars. This may not be a lot in 40 years but it’s a lot better than nothing.

People today whether they are rich or poor don’t understand the concept of living below their means. If you’re making fifty thousand a year, you shouldn’t be spending every penny. Experts usually say you should be saving at least 15% of your yearly take home pay. They also say that you shouldn’t be paying more than 30% of your monthly take home pay on your mortgage. If you’re falling into this boar and wonder why you can’t save, this could be your problem.

As mentioned in an earlier article, saving is not a hard concept at all. All it requires is a budget and a little self-discipline. Instead of eating at McDonalds, buy a few things at the store and make dinner for the night. A box of pasta and sauce costs no more than four dollars and can feed a family of six easily!

A recent study has shown that people earning $50,000-$100,000 a year typically are the more proficient savers, while anyone earning more than $100,000 can’t save as much because they “enjoy the spending”. A lot of high-income earners have the mindset that they can solely live off of social security or their pension when they retire and don’t have to worry about saving a penny. Now, while you can’t take everything for granted, you have to realize that every job can be gone in a second. This is why it’s important to have a rainy day fund that usually consists of six months of expense money.

Even if you’re rich and you’re reading this article, it doesn’t mean it’s not too late to save. You actually have an advantage. If you make $150,000 a year and live like a person who makes $30,000, you can create a lot of savings just within a few years. People who make a lot less than this will have a longer time to reach this goal. The point to this is that it’s never to late to save!

If you’re self disciplined and can balance a budget, your savings plan should be on the right path. It’s always best to think for the future when it comes to your money and not just today everyday.