Whatever stage of life you’re in, one thing will always hold true: saving money is something you should do at any time of day. It’s time to change your perspective if you’ve been wondering, “How much should I have saved?” Consider, “How much could I save?” Continue reading to find out what you can save now and later on.
As you approach your mid-30s, you might start wondering about your financial health and how much money you should have saved by this point. While there’s no one-size-fits-all answer, several factors can help you determine a suitable savings goal for your age.
Average Savings by Age
According to the Federal Reserve’s 2022 Survey of Consumer Finances, the average American has $62,410 in savings. However, this number varies significantly depending on age:
| Age Group | Average Savings |
|---|---|
| Under 35 | $11,200 |
| 35-44 | $27,900 |
| 45-54 | $48,200 |
| 55-64 | $57,800 |
How Much You Should Aim to Save by Retirement
While the average savings amount can provide a general idea, it’s more important to focus on your individual savings goals, particularly for retirement. A popular rule of thumb suggests having:
- 1x your annual income saved by age 30
- 3x by age 40
- 5x by age 50
- 7x by age 60
This means that if you earn $50,000 annually, you should aim to have saved $50,000 by age 30, $150,000 by age 40, and so on.
Smart Tools and Strategies for Savers of All Ages
Regardless of your age, several tools and strategies can help you boost your savings:
- Set specific goals: Define your financial goals and create a plan to achieve them.
- Automate your savings: Set up automatic transfers from your checking to your savings account.
- Track your spending: Monitor your expenses to identify areas where you can cut back.
- Use budgeting tools: Utilize budgeting apps or templates to manage your finances effectively.
- Consider a side hustle: Generate additional income through freelance work or a part-time job.
- Invest your savings: Invest a portion of your savings in stocks, bonds, or mutual funds to grow your wealth over time.
Saving money is crucial at any age, but it becomes even more important as you approach retirement. By setting realistic goals, utilizing smart strategies, and starting early, you can build a solid financial foundation for your future. Remember, it’s never too late to start saving, and every dollar you save today can make a significant difference in the long run.
How much to save for emergencies
Fast answer:
- Start with your monthly essential expenses when saving for emergencies rather than based on your age.
- An emergency savings account should ideally contain three to six months’ worth of necessities.
- Save your emergency funds in an accessible location by opening a savings account as opposed to a Certificate of Deposit (CD).
Unavoidable financial hiccups can occur from your dog swallowing a chew toy and needing to visit the vet to your car’s transmission breaking And during those times, having an emergency fund on hand can come in handy.
50/30/20 Monthly Budget
*Each amount is rounded to the nearest dollar.
How Much Income You Need To Save (By EVERY Age)
FAQ
How much should a 35 year old have saved?
|
Investor’s Age
|
Savings Benchmarks
|
|
30
|
0.5x of salary saved today
|
|
35
|
1x to 1.5x salary saved today
|
|
40
|
1.5x to 2.5x salary saved today
|
|
45
|
2.5x to 4x salary saved today
|
What is the ideal net worth at 35?
How much does the average 35 year old have in 401k?
|
Age range
|
Average balance
|
Median balance
|
|
35-44
|
$76,354
|
$28,318
|
|
45-54
|
$142,069
|
$48,301
|
|
55-64
|
$207,874
|
$71,168
|
|
65+
|
$232,710
|
$70,620
|
Is 150k in savings good?
How much money can a 35-year-old save?
The Federal Reserve found that people between the age of 35 and 44 had an average savings of $170,740. A 35-year-old might not have quite that much saved up. But you’ll likely have some bigger savings goals on the horizon. Maybe you are starting to think about retirement. Maybe you are working to build your career for long-term financial earnings.
How much money does a 30 year old save?
The Federal Reserve doesn’t specifically collect savings data about people who are 30. Instead, lumps together everyone under 35. Once again, the Fed’s most recent numbers show the average savings for the age group that includes 30-year-olds is $20,540. The median savings is $5,400.
How much money should a 40-year-old save?
Americans at this life stage are reflected in Federal Reserve statistics covering people ages 35 to 44. The Fed’s most recent numbers show the average savings for the age group that includes 40-year-olds is $41,540. The median savings is $7,500. By your 40s, you’re likely in your peak earning years and may have more money to put into savings.
How much money do you need If You’re Under 35?
Learn more The median savings balance — not including retirement funds — of Americans under 35 is just $3,240, while it’s $6,400 for those ages 55-64. No matter your age, savings is a necessity. But depending on your age, the amount of savings you will need changes according to life stages and your overall financial landscape.