You may be surprised, but small amounts of change can lead to some substantial savings over a longer term. With compounding interest and the right strategies, you can gather an income for your retirement. Start saving money while you’re young, which means that even if you save about $100 a month when you’re 25, you can accumulate as many as $175000 at the time you retire. At the same time as you increase the cost of living, set aside a specific amount which is not to be touched. This amount can come in handy in times of an emergency.