Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Back
Scroll to top

How Much Should You Have In Savings at Age 25?

If you’re wondering how much you should have in savings by the time you’re 25, you’re already on the right track. At an age where financial independence becomes increasingly more important, how much you can save depends on a number of factors, including income and debt.

Savings at Age 25

Many experts agree that most young adults in their 20s should allocate 10% of their income to savings. One of the worst pitfalls for young adults is to push off saving money until they’re older.

If you begin at 10% and find that you still have money left over by the time you receive your next paycheck, you may be able to comfortably increase the amount you’re saving per month. You should also consider saving for retirement. CNN Money offers retirement savings suggestions based on your income level:

Income Amount Saved Per Year
$40,000 $4,000
$65,000 $6,500
$90,000 $9,000
$115,000 $11,500

Financial Goals to Make Saving Easier

As nice as saving 10% may sound, there are other factors that can impact to how much you may actually be able to save, including necessary expenses and debt. Here are some milestones that can help you save money each month and help your credit and future purchases:

  • Pay off auto loans, credit card debts and other consumer debts as soon as possible. This does not include student loans and mortgages. You’ll want to focus on the higher interest debt first.
  • Save three months’ worth of living expenses in case of job loss or emergencies. This will allow you to create an emergency fund in case you encounter unexpected financial hardships.
  • Start investing your money in stocks, real estate or bonds. One of the easiest ways to do this is to take advantage of a 401(k) or other retirement fund offered by your employer. Often, employers will match your contribution, so this is a good way to maximize your investment and make it grow quickly.

Visit a First Bank Location Today

Regardless of your age, it’s important to make savings a priority. If you’re in your 20s and getting started, it can help to have some professional advice. To learn more, turn to the financial advisors at your local First Bank.* We help with money management at any age and will help you open right savings account so that you can achieve your future goals.

Read these helpful articles by First Bank: Online Money Hacks, Budgeting 101: Personal Budget Categories, Open an Online Banking Account, and 5 Money Saving Tips for Young Adults


———

Sources:
CNN Money: http://money.cnn.com/gallery/retirement/2015/09/01/how-much-do-i-need-for-retirement/
Money Under 30: https://www.moneyunder30.com/how-much-money-saved-30
How Stuff Works: http://money.howstuffworks.com/personal-finance/budgeting/how-much-should-i-save-from-paycheck1.htm

Trending Topics

Small Business Loans – Jacksonville NC

Recently, Forbes named Jacksonville, NC #25 in cost of business rankings. The thriving business appeal makes Jacksonville a clear choice for entrepreneurs looking to start or expand a small business. First Bank’s...

What Is a Child Savings Account?

“What is a child savings account?” In a child savings account, you can deposit spare change, birthday money and other loose funds to accrue some interest throughout their childhood. This teaches children...

Best Business Checking Account – Jacksonville NC

Running the best business in Jacksonville, North Carolina starts with having the best business checking account in Jacksonville, NC. And, opening the best business checking account in Jacksonville starts with a trip to one...

How to Open a Checking Account – South Carolina

If you are wondering how to open a checking account in South Carolina, your local First Bank can help. The first step is deciding what type of checking account is best for you. After choosing an account that fits your...

High Interest Savings Accounts: Save More – First Bank Jacksonville, NC

Thinking about saving for the future? Now is a great time to start. First Bank in Jacksonville, North Carolina has high interest savings account options for everyone, and we offer competitive rates and flexible terms on...

Need Help Financing a Wedding in North Carolina?

If you need help financing a wedding in North Carolina, just seek out one of 100+ First Bank locations scattered from Asheville to Kill Devil Hills. We offer a variety of loans that can help you finance the wedding of...

Best Personal Loan Rates in North Carolina

If you live in North Carolina and are looking for a personal loan, your local First Bank can help. We have over 100 locations in North Carolina that offer highly competitive personal loan rates. We make...

High Interest Checking Accounts In Albemarle, NC

It was not far from Albemarle, NC where in 1799 the 17-pound hunk of gold was found that sparked America’s first gold rush. While you may not strike it rich mining for gold, a high-interest checking account from...

Breathe Easy with Affordable Small Business Loan Rates in Albemarle, NC

First Bank has remained committed to helping small businesses and communities flourish since we opened our doors in 1935. Our dedication to providing a robust package of banking solutions with a personalized touch is why...

10-Step Program for First-Time Homebuyers

If you’re searching for a first-time homebuyer program, it’s important to find a process that is simple and clear. Purchasing a home for the first time is a significant event, so it’s also a process that...