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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 Mid-Thirties
You might have heard friends, parents or financial advisors at local banks advise you to follow the 50/30/20 rule. If you follow this rule, you’ll break up your income in the following manner:
- No more than 50% of your income should go to required expenses, such as shelter or food.
- No more than 30% can go towards the wants in life, such as your gym membership or cable.
- The final 20% of your income should to towards savings, retirement and paying off debt.
Some experts explain it another way and recommend that your savings should equal your salary by age 35.
Still another way to approach savings is by using this guide from CNN Money. According to this, 35 year-olds should have saved the following, depending on their income:
| Income | Estimated Amount in Savings |
| $40,000 | $60,000 |
| $65,000 | $97,500 |
| $90,000 | $135,000 |
| $115,000 | $172,500 |
However, this isn’t necessarily the case for many Americans, especially those with consumer debt or who didn’t get a job until later in their 20s. The savings goal at any age is simply to save so that you have an emergency fund, can pay off debt, and are able to invest.
Now is the Time to Start Saving for Retirement
Once you begin saving, it’s important to begin investing your wealth to let your money grow. This can be done through stocks and bonds, job promotions and salary increases, or even buying the apartment you’ve been renting. Your investment options should begin small and increase the more you save. Additionally, you should be making regular contributions to your IRA or 401k, whichever your company provides and matches.
There’s no single answer to how much savings you should have by age 35. Ultimately, it comes down to your own unique budget and contributions.
To learn more about savings at any age, contact your local First Bank* today. Our financial advisors can speak with you about your savings and help you plan for retirement.
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Sources:
CNN Money: http://money.cnn.com/gallery/retirement/2015/09/01/how-much-do-i-need-for-retirement/2.html
CNBC: http://www.cnbc.com/2014/02/10/qa-were-in-our-30s-how-much-should-we-be-saving.html
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