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

Learn How Much You Should Be Saving Each Year


Wondering how much you should be saving each year? Many specialists believe in the 50/20/30 budget50% is spent on necessary expenses (e.g. credit card bills, rent), 20% of your income is put into savings, and 30% is left for your luxury expenses (e.g. a new TV, restaurants).

By following this rule, you can comfortably begin saving for retirement or an emergency fund while having enough to make ends meet.

How Much Should I Be Saving?

While there’s no one-size-fits-all answer to how much you should have saved, there are some goals you should focus on during your 20s, 30s, 40s and beyond. Here’s a recommended savings road map to guide you at any age:

  • 20s: Focus on building your credit, paying off loans and save something each month. Even if you’re not able to save quite up to 20% of your income, try starting at 10%.
  • 30s: Allocate more money into savings, especially if you’re thinking about starting a family, buying a new home, or taking on a few home repairs soon. You should be putting at least 15% of your income into savings, if not more. Additionally, you should continue to pay off all non-mortgage debt.
  • 40s: Get your credit card debt under control and up the amount you’re putting away into savings again. By this time, you should aim to have more than your current salary put away in savings.
  • 50s: Max out your retirement contributions and pay off your mortgage. You should aim to have as much of your income and investments working towards your retirement goals as possible. Ideally, you have more than two times your current salary set aside in savings.

Start Saving for Your Future Today

Changing the way you spend can feel overwhelming at first and requires discipline. However, in time, you’ll get used to what is necessary and how much of your luxury expenses can be cut or limited.

Take charge of your finances and invest in your future. For more questions about how much you should be saving each year, or how to get started, contact your local First Bank branch today!


 ———

Sources:

Experian: https://www.experian.com/blogs/ask-experian/how-much-should-you-save-each-month/

Huffington Post: http://www.huffingtonpost.com/simple-thrifty-living/in-your-20s-40s-60s-the-b_b_5686551.html

Money Under 30: http://www.moneyunder30.com/how-much-do-you-need-to-have-saved-for-retirement

Trending Topics

What Is the Best Savings Account for Kids

The success of child savings accounts has been well documented. We can probably all agree that a savings account for kids is a good decision, but what is the best savings account for kids? First Bank offers a savings...

Personal Loan Rates – Salisbury NC

If you are looking for some of the best personal loan rates in Salisbury, NC, come to First Bank for small bank service with big bank options. Salisbury, North Carolina is rich in culture and history and has 10 National...

Four Tips Before Starting Your Business

According to research from the SBA.gov in a 2020 report of small businesses, North Carolina had a total of 934,604 small businesses. And despite everything the last year threw at us, the number of new businesses in the...

FHA Mortgage Loans – Asheboro NC

Since 1935, First Bank has been a bank dedicated to providing for the community. We offer FHA mortgage loans in Asheboro, NC to help home buyers and refinancers obtain a mortgage that is beneficial for them. A FHA mortgage...

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...

What Are Commercial Loan Interest Rates?

Starting and running your own business takes hard work, time, and money. If you are an entrepreneur or a business leader in need of financial help, you are probably wondering about current commercial loan interest rates....

How Much Should I Have in Savings at Age 35?

How much money should you have in your savings account at the age of 35? It largely depends on when you started saving, your income and lifestyle, and whether you carry consumer debt. Savings for Adults in Their...

Local Banks Near Me

When looking for local banks near you, look no further than your neighborhood First Bank. With locations across North Carolina and South Carolina, you can count on us for all of your banking needs. When you bank with...

Jumbo Home Mortgage Loans

If you are thinking of buying a home with a higher property value and can handle larger monthly mortgage payments, a jumbo loan could be a suitable option for you. Jumbo loans are typically offered with the same options as...

Commercial Mortgage – Wilmington NC

First Bank’s commercial mortgage lenders can put you in the right location for your Wilmington, NC, business to succeed. Our commercial real-estate loan specialists will offer you more than just a competitive...