When it comes to saving money for our future, we often times think we can do it tomorrow, next month, or next year. The future seems far away, right? It was just yesterday that we graduated college — we don’t need to save for retirement now. We need to buy a house, start a family, purchase a car, and enjoy life, right? At times, saving money for the future can seem more like the chores we had to do as a child, not painful if we did it, but just not appealing from afar. As we’ve mentioned before, saving is more a matter of perspective. Let’s take a look at one powerful way to save money for ourselves and our family’s future.

The five dollar out of a hundred rule might possibly be the answer. It’s important to note this method of saving should be used in conjunction, not instead of, a 401K or other employer operated retirement fund. Basically, for every 100 dollars you earn, you automatically save 5 dollars. The point is you’re saving 5% of your income for your future. When you couple the saving with a nice return on interest, you’ll have a decent nest egg for the golden years. Still not convinced?

Consider this: if you were to make $40,000 a year, then you would be a saving $2,000 using the five out of a hundred rule. In two year’s time you would have more than $4,000 with compounded interest. In 10 years, you would surpass the $20,000 mark. After 35 years, you would have closer to half a million in savings simply due to compounded interest on your ever-increasing fund.

This saving technique definitely challenges many people to think differently about the money they earn. To ramp up the challenge, consider finding ways to save money on every hundred dollars you spend. You can save money using coupons, redeeming rebates, and being conservative with your cash.

As we make our way through life, it’s easy to forget money may not always be there. We have to care for our future self and also have a true and honest perspective on money. When we save, we change our perspective and ultimately our lifestyle. It’s a win-win.