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

First Bank, Lillington, NC, High Interest Savings Accounts: Earn More

Growing your money can be difficult if you do not have a great understanding of the stock market or keep up with current trends. An alternative way to use your money to make money is to put it in a high-interest savings...

Banks in Florence, SC

If you’re looking for banks in Florence, SC, there are plenty of options to choose from. You can count on First Bank for all your banking and financial needs. We have two convenient Florence...

Save Money with This Refinance Calculator for Home Mortgages

When mortgage interest rates are low, homeowners should compare their current mortgage terms with the option of refinancing. By locking in the right rate, homeowners can take advantage of significant savings. Curious to...

Savings Account – South Carolina

If you live in South Carolina and are looking for a savings account, your local First Bank can help. We offer savings accounts to meet a variety of needs, and we are dedicated to helping you find the best...

Your Community Bank – Asheville NC

At First Bank, we believe that part of being your community bank in Asheville, NC, means offering services that meet the needs of everyone. From checking and savings accounts to mortgages and personal loans, First Bank...

New to Working From Home? Here’s How to Do It Safely

To help mitigate the threat of COVID-19, businesses and employees are finding themselves taking part in the biggest “work from home” experiment ever tried. If you are one of those business owners or employees, here are...

Forbes Names First Bank as Best-In-State Bank

First Bank was named the best bank in North Carolina by Forbes.com.

Earn More with Interest-Bearing Checking Accounts

An interest-bearing checking account offers the interest accumulation of savings accounts with the withdrawal and check-writing ease of checking accounts. This best-of-both-worlds combination allows bank...

Rental Property Mortgage Rates – Florence, SC

Owning a rental property is a popular way to build some equity, qualify for tax benefits and earn some easy cash.* In Florence, SC, competitive rental property mortgage rates can be found at our First Bank locations on...

Best Banking Rates and Services: First Bank, NC

There are many factors to consider when assessing a checking account comparison. You’ll want to weigh interest rates, maintenance fees, ATM options, online features and more. First Bank has nearly 100 locations...