How Much Money Should I Have Saved by the Time I am 30?
Are you approaching 30? How much money do you have saved? According to CNN Money, someone between the ages of 25 and 30, who makes around $40,000 a year, should have at least $4,000 saved. However, because everyone’s financial situations are unique and are influenced by their spending habits, income, debt and overall lifestyle, not every 30-year-old will have the same amount of money tucked away — and that’s okay!
Rather than tell you a precise amount that you should have saved by the time you are 30, we will provide you with savings tips to help you reach your specific financial goals, whatever they may be.
3 Financial Goals for People Under 30
By now, you know that the most effective way to save money is to set a monthly budget for yourself and stick to it. Some tips for setting a realistic and effective budget include:
- Recording your daily spending
- Tracking your spending habits for at least a month
- Still budgeting for fun and entertainment
- Making automatic savings contributions
- Clearly defining spending priorities
But what else can you do to ensure you have a healthy chunk of change stashed away by the time you hit the big 3-0?
1. Have no consumer debt. By the time you are 30 years old, you should have auto loans, credit cards and other consumer debt paid off. Remember, it’s better to have $500 in the bank with no debt than to have $5,000 in the bank with significant debt.
2. Make at least one (smart) investment. According to Investopedia, “A mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.” Mutual funds are the largest and most popular investment vehicle for the retail buyer, making them a great investment option for young people with limited investing experience.
3. Have at least three months of living expenses saved. Everyone should have an emergency fund to better prepare for unexpected events, such as an expensive auto breakdown or unemployment. When saving money for your emergency fund, make sure you are putting money in a savings account (separate from your checking account).
First Bank* Helps You Save
No matter your age, First Bank can help you save money to reach your financial goals. Some savings options that we offer include:
- Everywhere Savings Account
- Certificate of Deposit
- Individual Retirement Account
- Health Savings Account