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

Compare First Time Mortgage Rates with First Bank

When you’re ready to buy a house, it’s easy to get caught up in all of the excitement of shopping and forget about the financial aspect. Once you’ve found the perfect house, the first thing you may be...

Block Out Stress with a Worry-Free Savings Account at First Bank in Sanford, NC

According to research from the American Psychological Association, money is the second-leading cause of stress falling closely behind job pressure. At First Bank, we strive to eliminate money-related stress by offering a...

Calculate your Balance Transfer

If your current credit card isn’t meeting all of your needs, consider switching to a First Bank credit card. First Bank now offers the option to transfer your balance from your current credit cards to a First Bank...

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...

Best Bank for Checking Account – South Carolina

With options like First Bank, you shouldn’t have to feel uncertain about whether or not you’re making the right choices with your hard earned cash. Make the switch to First Bank and you’ll see why we are...

What is Required to Open a Business Checking Account?

It’s standard for a business to have a business checking account. After all, a business needs to handle cash and pay bills. If you’re just starting a business, or even if you’re moving your business bank...

Asheville Savings

First Bank in Asheville offers savings accounts for anyone looking to get the most out of their money. Whether you’re under 18 and just starting to learn about saving or saving for your future retirement, First Bank...

Find the Best Savings Account Rates at First Bank in North Carolina

Finding the best savings account rates in North Carolina can be beneficial for many reasons. Whether you want to save money in the case of an emergency or start a fund for your child’s education, having the right...

Mobile Banking – Jacksonville NC

If you’re looking for more flexibility in managing your accounts, First Bank provides mobile banking in Jacksonville, NC. Access your accounts from the comfort of your own home, our free Mobile Banking service brings...

Small Business Loans in Wilmington, NC

Growing a business can be difficult but rewarding. Whether you are looking to build a new building for your business, move into an existing space, or purchase equipment, First Bank has the right small business loans in...