How Much Savings Should I Have At Age 30?
Do you know how much savings you should have at age 30? Unfortunately, there is no exact answer. Expert advice conflicts between encouraging 30-year-olds to save more and investing their already saved money into assets.
However, if you’ve been saving the recommended 10-25% of your income in your 20s, then you’re already off to a great start!
Estimated Amount of Savings by Age 30
How much savings you have, or should have, depends on your income. CNN Money provides the following estimates for people in their 30s to use as a guide to retirement savings.
|Income||Estimated Savings Amount|
If these aren’t the numbers reflected in your savings account balance, don’t panic! This can easily be an over- or under-estimation for many, especially depending on when in your 20s you began saving.
Focus on Investing Over Saving
Rather than focusing on the number you should or should not have by the time you’re 30, you should instead focus on investing and paying off your debt. You have plenty of time to save up for that trip to Bermuda, but that shouldn’t be done while you’re carrying credit card debt.
Money Under 30 recommends three financial goals that you should hit by the age of 30:
- Pay off consumer debt as soon as you can, including credit card debt and auto loans.
- Save an emergency fund of at least three months’ (or more!) worth of living expenses in case you are suddenly unemployed or have to foot a pricey car repair bill.
- Begin investing, as that adds to your net worth more than how much you’ve set aside in savings thus far. Consult with an investment advisor before making any investments.
For more advice and guidance on savings, investing and retirement, contact your local First Bank* branch today.
Financial Samurai: http://www.financialsamurai.com/how-much-savings-should-i-have-accumulated-by-age/
CNN Money: http://money.cnn.com/gallery/retirement/2015/09/01/how-much-do-i-need-for-retirement/2.html
Money Under 30: http://www.moneyunder30.com/how-much-money-saved-30
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