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

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

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.

If you're looking for a ballpark figure, Taylor Kovar, certified financial planner and CEO of Kovar Wealth Management says, “By age 30, a good rule of thumb is to aim to have saved the equivalent of your annual salary. Let's say you're earning $50,000 a year. By 30, it would be beneficial to have $50,000 saved.

Fidelity suggests 1x your income

Fidelity Investments recommends saving 1x your salary by 30. At the end of 2021, the average annual salary was $49,920 for 25 to 34-year-olds and $58,604 for 35 to 44-year-olds.

By 30, you should have a decent chunk of change saved for your future self, experts say — in fact, ideally your account would look like a year's worth of salary, according to Boston-based investment firm Fidelity Investments, so if you make $50,000 a year, you'd have $50,000 saved already.

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.

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.

When it comes to building wealth, it's good to outperform your 30-year-old peers. According to CNN Money, the average net worth in 2022 for the following ages are: $9,000 for ages 25-34, $52,000 for ages 35-44, $100,000 for ages 45-54, $180,000 for ages 55-64, and $232,000+ for 65+.

And given that the average American spends $66,921 per year (as of 2021), $10 million is more than enough to retire at 30 in most cases. However, that may not be true if you have an expensive lifestyle when you retire. Factors like inflation, healthcare costs and a volatile stock market can derail your retirement.

By age 35, aim to save one to one-and-a-half times your current salary for retirement. By age 50, that goal is three-and-a-half to six times your salary. By age 60, your retirement savings goal may be six to 11-times your salary. Ranges increase with age to account for a wide variety of incomes and situations.

How do I start saving in my 30s? ›

The best ways to build wealth in your 30s include paying off debt, making regular contributions to qualified retirement accounts, such as a 401(k) or an IRA, and taking advantage of an employer match if it's offered. Retirement plans are a proven way to build wealth.

How much money you should have saved by 30? If you're 30 and wondering how much you should have saved, experts say this is the age where you should have the equivalent of one year's worth of your salary in the bank. So if you're making $50,000, that's the amount of money you should have saved by 30.

How much should you save each month? For many people, the 50/30/20 rule is a great way to split up monthly income. This budgeting rule states that you should allocate 50 percent of your monthly income for essentials (such as housing, groceries and gas), 30 percent for wants and 20 percent for savings.

Before moving out, ideally save six months' worth of living expenses, though some manage with less. Calculate all potential upfront and ongoing costs to ensure affordability. Consider sharing expenses with a roommate to make moving more feasible.

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.

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.