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

What is Personal Finance?

Are you ready to get a handle on your finances and prepare for your future? The first step is understanding personal finance. According to Investopedia, "Personal finance defines all financial decisions…

Is It Possible to Get a Mortgage Refinanced with No Closing Costs?

When it comes to refinancing a mortgage, you need to spend money to save money. Closing costs can amount to thousands of dollars, depending on the home loan. This is…

Personal Finance Articles & Advice | First Bank

Looking for advice on how to better manage your finances? First Bank's* collection of personal finance articles can help you with every aspect of managing your funds, from saving money to…

First Bank is One of the Top Banks in the U.S.A.

When searching for the top banks in the U.S., it is often smarter to work with a small community bank over a national bank like Wells Fargo or Bank of…

Mortgage Rates 101: Information You Should Know

Acquiring information about mortgage rates is a vital step in the home buying process. Mortgage rates vary based on several factors, such as the amount and type of your loan…

FHA Loans vs. Conventional Loans: How to Tell the Difference

Overwhelmed with the prospect of buying a home? FHA loans and conventional loans are likely two sources of financing that you’ve considered. Let First Bank help you understand these options…

What is Overdraft Protection?

According to Investopedia, an overdraft is "an extension of credit from a lending institution when an account reaches zero." An overdraft allows the individual to continue withdrawing money even if…

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.…

How To Make A Budget

The best way to save money and gain control over your finances is to make a budget. Follow these simple steps to make a budget that will save you money…

Open a Banking Account Online at First Bank

The ability to manage bank accounts online has provided us with financial freedom like never before. Consumers may now make payments, transfer funds or make deposits straight from a computer…