How Much Money Should I Have Saved by the Time I am 30? | First Bank (2024)

FAQs

How Much Money Should I Have Saved by the Time I am 30? | First Bank? ›

By 30, it would be beneficial to have $50,000 saved. This comes from the goal of being able to replace about 70% to 80% of your pre-retirement income in retirement.”

By 30, it would be beneficial to have $50,000 saved. This comes from the goal of being able to replace about 70% to 80% of your pre-retirement income in retirement.”

Fast answer: Rule of thumb: Have 1x your annual income saved by age 30, 3x by 40, and so on. See chart below. The sooner you start saving for retirement, the longer you have to take advantage of the power of compound interest.

By age 30, people should aim to eliminate as much debt as possible, whether it be from credit cards, student loans, or car loans. Focus on paying off the high-interest debt first, then work your way through. Negotiate your bills. Look at your current bills and see which ones you could negotiate.

Ready to talk to an expert? 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.

By age 30, you should have saved about $52,000, assuming you're earning a relatively average salary. This target number is based on the rule of thumb you should aim to have about one year's salary saved by the time you're entering your fourth decade.

Saving $1,000 per month can be a good sign, as it means you're setting aside money for emergencies and long-term goals. However, if you're ignoring high-interest debt to meet your savings goals, you might want to switch gears and focus on paying off debt first.

“By the time you're 40, you should have three times your annual salary saved. Based on the median income for Americans in this age bracket, $100K between 25-30 years old is pretty good; but you would need to increase your savings to reach your age 40 benchmark.”

At Least 10K

If you're having trouble saving or don't have a steady income to rely on, Sam Underwood, an e-commerce SEO consultant, suggests, “A good amount to have saved by 25 years old is at least $10,000. This may seem like a lofty goal, but it's achievable with proper planning and saving strategies.”

By the time you're 25, you probably have accrued at least a few years in the workforce, so you may be starting to think seriously about saving money. But saving might still be a challenge if you're earning an entry-level salary or you have significant student loan debt. By age 25, you should have saved about $20,000.

How rich is the average 30 year old? ›

The net worth you should be aiming for in your 30s is between $25,000 and $100,000, according to Crissi Cole, founder and CEO of Penny Finance.

For most, $10,000 is a lot of money. Typically, that amount of money doesn't just appear out of thin air without some financial strain. However, if you think about $10,000 as saving a little over $27 each day, it becomes much more realistic.

Each year, the financial services company Charles Schwab puts out a report on how Americans think about saving, spending, investing and being wealthy. Schwab's 2022 Modern Wealth Survey, which surveyed 1,000 Americans ages 21 to 75, revealed that it takes a net worth of $2.2 million to be considered wealthy.

Aim to save an amount equal to your annual salary by age 30 as a general rule of thumb. This provides a good foundation across emergency, short-term, and retirement savings buckets. Contribute early and consistently to retirement accounts to maximize compounding returns over time.

Whether $5,000 is sufficient for your emergency savings fund depends on your unique personal circ*mstances. For instance, a fund of $5,000 may be plenty for a bachelor in their early career but completely inadequate for their neighbor who owns a home and has four kids.

By age 30, Fidelity recommends having the equivalent of one year's salary stashed in your workplace retirement plan. So, if you make $50,000, your 401(k) balance should be $50,000 by the time you hit 30.