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

SBA Com

If you have a business plan but are having trouble acquiring a bank loan, consider reaching out to the Small Business Association (SBA). The SBA is a government-affiliated organization that…

Find the Best Banks in Charlotte, N.C. | First Bank

The best banks in Charlotte, NC, provide you with convenient ATMs and many helpful banking options. Whether you live in or around the Queen City, you always have access to First…

Is Contributing to a Nondeductible IRA Right for You?

If you're considering making contributions to a nondeductible IRA, first learn about all of your options. This quick guide will explain the differences between deductible, nondeductible and Roth IRAs and how…

11 Easy Tips for Saving Money

Saving money is important if you want to be prepared for future financial surprises or hardships and establish peace of mind. But sometimes, finding extra funds to set aside is…

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…

Budgeting Tips for Newlyweds

For many newlyweds, budgeting is a helpful activity to manage your finances. By following these easy guidelines, you and your significant other can work together to spend less, save more,…

Personal Finance Tips for Beginners

Reading personal finance tips is a great way to start thinking about your budget and saving for the future. If you're just beginning to think about your financial future and…

How Much Savings Should I Have At Age 30?

Do you know how much savings you should have at age 30? Unfortunately, there is no exact answer. Expert advice conflicts between encouraging 30-year-olds to save more and investing their already saved…

Bank Accounts for North Carolina Businesses

If you’re running a business, you want to make sure your finances are in good order. First Bank* offers North Carolina businesses the bank accounts and merchant services tools needed…

Bank Accounts for Businesses in South Carolina

Do you own a South Carolina business? Are you looking to start one? There are a number of reasons why South Carolina is a great state to do business. And…