Americans are spending everything they're making and more, pushing the national savings rate to the lowest point since the Great Depression. Soaring home prices apparently have convinced people they don't have to worry about saving. For many Americans their home is the largest investment they own. The Commerce Department reported "Americans personal savings fell into negative territory at minus 0.5 percent last year. That means that people not only spent all of their after-tax income last year but had to dip into previous savings or increase their borrowing.

The savings rate for an entire year only twice before - in 1932 and 1933 - two years when Americans were having to deplete savings to cope with the massive job layoffs and business failures caused by the Great Depression. The savings rate stood at 10.8 percent of after-tax incomes in 1984 and been decling steadily since that time. It was down to 1.8 percent in 2004 before turning negative last year".

We had better start funding our retirement plans every year or some of us will be working longer than we want to. Try saving at least 10 percent of your wage or more if your working overtime don't be spending that extra money this is the extra money you will need later. Start a savings plan the whole family might be able to participate in and make it into a fun thing to do instead of hard work, that way the younger ones will get into the habit.