You’ve probably heard a lot of people tell you how you should have a certain amount saved up by a particular age. Funny enough, there are a lot of comments concerning this particular topic. We are no financial experts, but if you have asked yourself countlessly, “How much money should I have saved by 30?” We could help you out with the answer.
We would like to address the notion that everyone has an active saving plan. We want you to know that most people struggle with saving. Life can be hard sometimes. It’s easy to feel like there’s no hope for your future. But we’ve got some good news for you: there is hope.
That’s because today’s article is all about saving money in your 20s, 30s, and 40s. We know that saving money can seem like an impossible task sometimes—but it doesn’t have to be. We’ll show you how to save money in your 20s, 30s, and 40s.
We’ll discuss the following topics:
- What is savings and why is it important?
- How much should you save in your 20s?
- How much money should I have saved by 30?
- What should my average savings by age 40 be?
What is savings and why is it important?
Savings is a term used to describe an amount taken from a person’s income which is properly stored and remains untouched until further notice. Savings is important to plan ahead for the future. This could be for the times when you grow older or even for emergency funds.
It’s time to stop feeling old-fashioned. We’re not talking about being a grandma or even a grandpa—we’re talking about saving money. And if you’re anything like us, it can be hard to keep up your savings habit when you’re trying to do everything else in life. But you don’t have to give up on your money habits just because you’re in your 20s, 30s, or 40s. We’ve got some tips for saving in those tough decades:
Firstly, start early. Making a plan is the best way to stick with it. Look at what kind of lifestyle you want to have in the future—what kind of car do you want? What kind of house do you want? What are your aspirations? Then make a plan for how much money is going into those things and when they’ll happen. It might be hard at first because life happens. But once you’ve identified your goals and started saving towards them, it will be easier than ever before.
Secondly, don’t let the fright about how expensive everything is ruin your ability to save. Some people feel like if they can just afford one more thing or go on one more vacation, then they’ll be set financially for life, but sadly, this isn’t true. We’ve seen too many people waste their entire lives trying to stay afloat after spending so much while young without saving.
Thirdly, nothing is too small. No matter how little you can save, it will go a long way for you in the long run. As the saying goes, “little drops of water make a mighty ocean.” Your little savings will surprise you one day.
How much should you save in your 20s?
You’re not a kid anymore—you’re an adult. Congratulations! No one likes to admit it, but saving in your 20s is hard. But how do you make sure that you don’t just keep going through life as if you’re still a teenager? We’ve put together a few tips to help you save in your 20s.
According to financial experts, people in their 20s are not expected to save much, if anything at all. They advise that this age group should focus more on investing in themselves. This means that people in their 20s should use their little earnings to learn more and grow in their supposed industry.
However, to help those who already have something going on, they are advised to save between 10 and 20% of their earnings. Find a savings plan where you are certain that you can get some returns—helps to double your savings.
How much money should I have saved by 30?
People in this age group are usually tasked with the question, “How much money should I have saved by 30?” We get it, though. There are so many expectations of people in their 30s. Financial experts advise that individuals at this age are expected to have saved up to their annual salary—average savings by age 30 should be equal to 1 x annual salary income.
This simply means that if your annual salary is $6000, you’re expected to have saved an average amount of $6000 throughout your 30s.
What should my average savings by age 40 be?
As you keep adding more years, we hope your salary increases as well. But to stick to our financial experts’ advice, individuals in this age group are expected to have saved three times their annual income.
This means that if your annual income is $6,000, you’re expected to have saved $18,000 in your 40s. The calculation simply goes like this: average savings by age 20 should be 10-20% of income; average savings by age 30 should be 1x and by age 35 should be 2x; average savings by age 40 should be 3x; average savings by age 50 should be 5x; and it goes on and on until retirement.
How much money should I have saved by 30? We love the idea of saving. You want to put away money for your future, and you know that when you’re in your 20s, 30s, and 40s, it’s going to be much harder to do that if you don’t start early. So we have provided a few tips for how to save money in your twenties, thirties, and forties.