No matter what stage of life you’re in, one thing will always remain the same: You’re never too young — or too old — to save money.
Using your age can be a helpful way to calculate your potential savings and estimate how much money you should save for various life events. Just remember: Don’t get discouraged if you haven’t started yet, need to hit pause, or fall behind. You can always get back on track.
If you’re wondering, “How much should I have saved?” now is the time to flip your mindset. Think, “How much could I save?” Read on to see just how much your savings today can turn into down the road.
1. So, how much money should you have saved?
2. Adventure Awaits: Savings for Retirement by Age
3. Rainy Day Fund: Savings for Emergencies by Age
4. Saving for a Wedding, Vacation, Puppy and More
5. Smart tools and strategies for savers of all ages
So, how much money should you have saved?
Fast Answer:
- The amount of money you should save is unique to your lifestyle.
- You can reach savings goals by creating specific target amounts and dates.
- Find extra money to save by cutting back spending and/or picking up a side gig.
First things first: There isn’t a one-size-fits-all number. It’s important your savings — and savings goals — connect to your lifestyle. That includes everything from your income and the way you like to shop, to where you live, if you have a car, if you’re raising kids, pay rent or have a mortgage, and more. Everyone has their own magic number based on their budget.
You can find your magic number by creating specific savings goals. For example, you want to save for a treadmill that costs $1,000 to complete your home workout routine within the next six months. Being specific about your goals — and when you hope to accomplish them — will give you a framework for how much you need and how long it could take you to get there. Smart savings tools like buckets let you easily set goals, organize your savings and keep track of your priorities.
Remember, the key to saving for goals that are quickly approaching and those far off isn’t putting away massive amounts of money at a time. (Although a windfall of cash, like a tax return, can help you from time to time). It’s really all about finding a savings amount that works for you — and staying consistent.
Expert tip: Finding extra money can be possible. Start by looking at your weekly or monthly spending. You might find areas you can cut down on expenses to free up cash for saving. Even if it’s just a few bucks a week, that’s a win! Or, you might realize increasing your income is a better option. You could consider a side gig or explore ways to make money online.
Savings for Retirement By Age
Fast Answer:
- A general rule of thumb is to have one times your income saved by age 30, three times by 40, and so on. See chart below.
- The sooner you start saving for retirement, the longer you’ll have to take advantage of the power of compound interest.
- Aim to save 5% to 15% of your income for retirement — or start with a percentage that’s manageable for your budget and increase by 1% each year until you reach 15%.
The thought of saving a couple million dollars by your 60s or 70s can sound daunting, we know. That’s where breaking up your retirement savings with age-based benchmarks may help. By looking at your savings in 10-year increments, it’s easier to plan financially and put actionable savings steps in place.
One popular age-based savings recommendation is that you should aim to save one times your salary by age 30 and increase your savings by your annual salary every five years.
| By Age... | You Should Aim to Save... |
|---|---|
| 30 | 1 x your income |
| 40 | 3 x your income |
| 50 | 5 x your income |
| 60 | 7 x your income |
| 70 | 9 x your income |
| 80 | 11 x your income |
Keep in mind the above is more of a guide than a strict plan. The amount you should save for retirement should be based upon factors including:
- your income
- your planned retirement age
- the kind of lifestyle you want to have in retirement
For example, if you want to retire at age 62 and travel the world, you might need a bigger retirement account than if you plan to retire at 70.
So, how do you begin to aim for these goals? You could start by investing 5% to 15% per paycheck in a tax-advantaged retirement account until retirement.
The Power of Retirement Investing
Your retirement savings rate can have a big impact on your total return. See below how much could be stashed away with consistent saving. The following example is based on the U.S. median household annual income of $68,703 (according to 2019 U.S. Census Bureau data) and assumes an average annual return of 6%.
| Starting at Age | Annual Retirement Savings Rate | By Age 65 You'd Have... |
|---|---|---|
| 25 | 5% | $531,607 |
| 10% | $1,063,261 | |
| 15% | $1,594,896 | |
| 35 | 5% | $271,565 |
| 10% | $543,153 | |
| 15% | $814,732 | |
| 45 | 5% | $126,358 |
| 10% | $252,728 | |
| 15% | $379,093 |
Dedicating 5% to 15% of your pre-tax income to retirement isn’t always possible. You may be starting a new career, paying back student loans, or have other financial obligations and aren’t able to save that much of your salary all at once. And that’s okay, because saving for retirement isn’t all or nothing. If that is the case, start with a percentage you’re comfortable with and increase your savings rate gradually by 1% each year until you reach the 15% mark. If you’re getting a 1% annual raise at the same time, you won’t even miss the extra money from your paychecks.
Don’t panic if you’re currently paying back loans or other debts. If you have room to save for retirement at the same time, that’s great — aim to put away what you can while sticking to your loan repayment schedule. Once you’ve paid off a debt (like a car loan, student payments, credit card debt, etc.) consider transferring that monthly payment amount toward retirement instead.
No matter your age, tax-advantaged savings and investment accounts, such 401(k)s and Roth or traditional IRAs (Individual Retirement Account), could be used to your advantage at any point in time.
If you’ve been saving for a while, make sure to give your retirement accounts regular checkups to see if you’re on track for your goals.
Expert Tip: You can increase your contributions to your 401(k) by saving enough to qualify for your employer’s full match (if one is available). For example, if you set aside 5% of your annual paycheck in your 401(k) and your employer matches 100% of your contributions up to 5%, the annual contribution to your retirement fund will be 10% of your yearly salary. Employer-sponsored retirement programs differ, so check with your employer for eligibility.
Feeling behind? Consider a “catch-up contribution.”
If financial constraints or other priorities keep you from saving for retirement until later in life, you can consider taking advantage of what’s called a “catch-up contribution.” That is when retirement plans let you make an extra yearly contribution to your tax-advantaged retirement account once you hit age 50. (The amount allowed is determined by the IRS.)
When saving for retirement, automate monthly transfers from your checking account to a savings account or an IRA (if it makes sense tax-wise) for a hassle-free way to watch your retirement savings grow. Be sure to consult your tax professional to see if it makes sense for you. And remember to check in on your savings (ideally, at least once a year) to see how your efforts are paying off.
Finally, don’t forget about Social Security, which you may qualify for starting at age 62. These monthly payments, as well as another retirement account, like an IRA can be used to supplement your retirement savings.
Savings for Emergencies by Age
Fast Answer:
- Rather than using your age as a guide to determine how much you should have saved for emergencies, you could start with the amount you spend each month on expenses.
- A popular mindset is that emergency savings account should ideally hold three to six months’ worth of expenses in easy-to-access cash.
- To keep your emergency savings accessible, consider an online savings account (not a CD or investment account).
It’s inevitable: Life throws you financial curveballs.
That’s when your emergency fund can save the day.
An emergency fund is cash you set aside in a savings account only for unexpected expenses. If your dog swallows a chew toy and needs a trip to the vet, for example, or your car breaks down and needs a new transmission, the funds in your emergency account can pay for those just-in-case moments.
Emergency Funds: It’s all about Your Monthly Spending
The ideal size of your emergency fund will likely fluctuate throughout your life based upon your monthly expenses. Rule of thumb? Aim to have at least three to six months’ worth of expenses set aside.
We know this can feel impossible, especially if you’re just starting out. Remember, you don’t have to build an emergency fund overnight. Instead, focus on consistently putting away what you can afford. It’s perfectly okay to start with a smaller savings goal, whether it’s one month of expenses, a $1,000, $100, or even $10. Strategies like microsaving can help you find safe-to-save money you might’ve not realized you had.
To figure out how much you should have saved for emergencies, simply multiple the amount of money you spend each month on expenses by either 3 or 6 months to get your target goal amount. See example below.
If you spend…
| Monthly spending examples: | 3 months of emergency savings | 6 months of emergency savings |
|---|---|---|
| $1,190 | $3,570 | $7,140 |
| $2,380 | $7,140 | $14,280 |
| $3,120 | $9,360 | $18,720 |
| $4,760 | $14,282 | $28,560 |
| $6,240 | $18,722 | $37,440 |
| $7,140 | $21,420 | $42,840 |
| $9,360 | $28,080 | $56,160 |
The chart above is based on 2019 Consumer Expenditure Survey data from the United States Bureau of Labor Statistics. Note that these expenditures include both essential expenses (like rent or mortgage, groceries, insurance payments and education) and nonessential purchases (like entertainment and clothing).
Keep in mind: The numbers above are simply examples and may not resonate with your lifestyle, as everyone’s situation is different. While you might choose to use these numbers as a benchmark, it’s more important to determine how much of your own monthly spending goes toward essential purchases and aim to save three to six times that amount.
Expert tip: Don’t know how much you spend each month? Find out by tracking your own spending to see how much you actually need month-to-month. Once you have a good idea, plug your numbers into our emergency savings account calculator. You’ll even get an estimate of how long it will take to reach your goal based on how much you put away each month. Learn more about how to start saving for an emergency fund.
Where to stash your emergency cash
Where you keep your money is also important. An emergency savings account could be kept in a deposit account that earns interest and is liquid (like our Online Savings Account), instead of a certificate of deposit (CD) or an investment account.
Why? It’s simple. Your emergency savings needs to be accessible.
With most CDs, you may have to wait until its maturity date to pull money out. Or, if you withdraw it early, you may have to pay a penalty. Drawing money out of an investment account could also trigger tax consequences, plus it usually takes several days before the cash hits your bank account.
Keeping your emergency fund in a savings account that earns a competitive interest rate means you don’t have to jump through any extra hoops to get cash when you need it. Plus, your money could earn interest at a potentially competitive rate — meaning it’s growing all the time.
Expert Tip: Take advantage of tools and technology to help you reach your goals. With Ally Bank’s Online Savings Account, you can supercharge your savings with smart savings tools like Recurring Transfers and Surprise Savings, so you can reach your savings target even faster.
Saving for a Wedding, Vacation, Puppy and More
Fast Answer:
- The costs for additional life expenses, like new homes, cars, weddings, children, etc. vary.
- Use our savings goal calculator to help set your savings goals and plans for five of life’s major milestones, including a baby, a house and a car .
- Prioritize your savings when aiming to save for multiple large expenses at once.
As you make progress saving for emergencies and retirement, you’ll probably have other goals in the interim that’ll require saving up cash to accomplish.
Maybe you’re renting now and want to become a homeowner — which means you’ll need cash for a down payment and closing costs. Or you’re in a serious relationship and would like to put a ring on it. Or maybe there’s a baby in a baby carriage on the horizon. You’ll want to start saving for college (and lots and lots of diapers).
And that’s not all. You might one day hope to refurnish your living room, upgrade to a more spacious vehicle, or splurge on your dream vacation — Saint-Tropez, anyone?
Of course, saving for these items will vary. But looking at the average cost of each expense and mapping out a timeline of when you hope to achieve your savings goal can give you an idea of how much you need to set aside.
| If You're Saving For... | Plan to Save... |
|---|---|
| A summer vacation (including travel, lodging, food, etc.) | $1,979/person |
| New living room furniture | $2,500 |
| Down payment for an average small car | $2,000 |
| A treadmill | $500 to $3,000 |
| Down payment for a home (5% to 20% and based on May 2020 median home price) | $14,230 to $56,920 |
| A wedding (based on 2020 average) | $19,000 |
| College for your kids (average for four years at in-state public school) | $102,460 |
| A puppy (average first-year cost for small to large dog) | $1,471 to $2,008 |
These are just a few examples of some popular savings goals and how you might save for them, based on their national average costs.
Smart tools and strategies for savers of all ages
Fast Answer:
- Smart savings tools like Ally Bank’s Buckets, a feature of our Online Savings Account, let you easily set goals, organize your savings and keep track of your priorities.
- Microsaving can help you reach your savings targets even faster.
- When in doubt, consider automating your savings with recurring transfers or direct deposits.
Prioritizing and staying organized can keep you from stressing over not saving enough for all the things you want to do with your money. If you’ve got a plan for saving toward multiple goals, it reduces the chance that something slips through the cracks.
For example, say you want to adopt a dog a year from now and purchase a home three years after that. You can afford to save $800 a month towards both items. In this instance, you might sock away $100 each month for puppy preparation and $700 for the down payment on a house. After you adopt your new fur-ever friend, you can redirect that $100 over to your home savings fund.
The buckets tool in our Online Savings Account helps you organize your savings into separate digital envelopes and set specific goals for each, eliminating the need to open multiple savings accounts to track your progress.
To make saving go even smoother, consider going on autopilot. By automatically diverting a portion of your paycheck, initiating recurring transfers into your respective savings accounts, or using the Surprise Savings booster in our Online Savings Account, you can ease some of the stress of reaching your goals.
Finally, remember that when you’re saving money, any little bit counts. If you aren’t able to put away larger chunks of cash at a time, like $500 or $100 or even $50, that doesn’t mean saving is out of the question. By using microsaving strategies (or stashing away small amounts of money, usually less than $2 at a time), you can consistently add to your savings without the pressure of putting big amounts away all at once.
You’ve got this.
When mapping out your financial future, age may act as your savings compass. Let it point you in the right direction and help you visualize what today’s savings can look like later on. And remember, you’re never too young or too old to save for the goals that matter most to you.
One savings account, multiple savings goals. Customize and organize all your financial priorities with our Online Savings Account.
Check out our Online Savings Account.
This icon indicates a link to a third party website not operated by Ally Bank or Ally. We are not responsible for the products, services or information you may find or provide there. Also, you should read and understand how that site’s privacy policy, level of security and terms and conditions may impact you.
Quick Poll
Ally Tools & Tips
Options Trading
Options involve risk and are not suitable for all investors. Options investors may lose the entire amount of their investment in a relatively short period of time.
Prior to buying or selling options, investors must read the Characteristics and Risks of Standardized Options brochure (17.8 MB PDF), also known as the options disclosure document. It explains in more detail the characteristics and risks of exchange traded options.
November 2012 Supplement (PDF)
October 2018 Supplement (PDF)
You can also request a printed version by calling us at 1-855-880-2559.
Comment on this article
Comments
D M. on November 24, 2019 at 4:04pm
Where do people work to meet all if these savings and retirement goals? Shit, I'd have to save my entire salary. Age 37 now. Age 35 I did have about $30,000 that got used on our newly purchased home (electrical roof, etc.) Only about 20k fir retirement as kost of my 20s I only made about 25k a year. Most of that was set aside while I was out if countrybin the Army making some extra cash. So... how does one "catch up" when closing in on age 40? I would be saving an additional 500 bucks a month, but paying my wife's student loans off instead.
KJ G. on February 24, 2020 at 7:57pm
In response to DM, the key is to start EARLY, and start adult life by making your savings your first expense paid of every month. If your income can't cover savings when you leave the nest...it's not time to leave the nest yet. Or, get enough roommates to cover the difference. I did not have a high income when I started working, and I still earn under $100K/year, but I'm on track for retirement. Not having student loans helped more than I can say.
Ally on March 2, 2020 at 2:14pm
Thanks for the comment, KJ. Keep up the great work.
virginia t. on March 8, 2020 at 2:45pm
I found as a almost 70 y/0 woman, divorced, single to consider the amount I should be saving at age 70. I've saved more than that already, and I'm happy to know that I'm in a pretty good place financially. Time really does fly! I'd like to thank you ALLY for the info re: age appropriate savings... as it really got my attention,!!!
Tom on March 12, 2020 at 4:43pm
This is backwards! 80 percent of people are just trying to survive this virus and the financial situation it has caused them.
CRL on March 12, 2020 at 9:10pm
Wow, 14,000 + emergency fund for those of us in our 30s. With our student loan debt ,to say the least, sounds like we have to eat rice and beans every day for umpteen years to get there while our taxes are sucked dry without any guarantee we’ll ever see our social security. Unrealistic overall, and I’m blessed to have stable income . Depressing , unattainable numbers and goals. Your effort is appreciated but reality has to be; and should be addressed.
Ally on March 13, 2020 at 7:39pm
We love hearing this, Virginia! Thank you for the comment. 😊
Clueless W. on March 29, 2020 at 10:49am
It is not easy to get by in this world, I think a large majority can relate to that. High paying quality jobs are few and far between. Living costs are astronomical and only getting worse. The job market is plentiful but with medicore to low quality jobs with company's who could care less about you. This is life and the adversity we face everyday and need to overcome. It's what you do with your life, your ambition and passion to better yourself and succeed that determines your future. You need to set goals get out there and push yourself. Don't settle for any job go above what you think you can and aim higher for yourself. Research career paths, study fields that pay well and don't require degrees or formal educations. There are many jobs in technical field, construction and trades that pay well above the national average. Stop feeling sorry for yourself and making excuses, or saying you can't do it or it's impossible. The key to saving is discipline. It doesn't matter when
M on April 1, 2020 at 7:27pm
Must be for the top 5% rich people
D. on May 9, 2020 at 1:27pm
Thanks for the article, I found this to be a very helpful breakdown.
Ally on May 9, 2020 at 1:33pm
We’re happy to hear this. Thanks for reading.
Toni G. on May 14, 2020 at 4:01pm
Thank you for this article, it is very informative and an eye opener. I have to say, discipline plays a big roll on starting a life of saving money. And, yes! Saving money is a life goal, if you want to get there. Getting rid of all the excuses and additional expenses that you don’t need will help you get there. I’m a single mother of 2, and have been saving since I was 19. It is hard in this economy but it is also possible!!
Ally on May 26, 2020 at 3:54pm
Thanks for sharing, Toni. 😊
Alex on June 2, 2020 at 7:31pm
How on earth is the average 25-34 year old spending $4,705 a MONTH? That comes out to spending $56,460 a year. Not *making* that much per year, just spending! That blows my mind. I'm 35 and I only make around 48k a year before taxes. And naturally after taxes, health insurance, and retirement contributions, I take home way less than that. If I spent anywhere close to $4,705 a month, I'd be drowning in debt.
Ryan on June 15, 2020 at 9:08pm
Maybe I'm thinking wrong, but it seems to me that the value of money and savings is irrelevant. Assets/stocks are the most important aspect when it comes to saving and retirement. Cash is nothing if its not being put to use.
NormalGuy on June 18, 2020 at 1:12pm
It's unfortunate to see many people saying that these baselines are unrealistic, there seems to be a problem with the financial/ career education in the United States. People are taught, just go to college and you'll get great jobs, it's just not true. For the people who pick the right degree and start making good money, most those people don't know how to be responsible with their money. Through self education and a very inquisitive nature I gained proper knowledge to pay my bills, deal with student loans, and save, all at the age of 21. I'm not some special case or one of those 21 year olds who make millions, I just educated myself and in my opinion that's all that people need to navigate the murky world of finances. At 21 I have already exceeded the "by 30" category and I lead a very happy life (in a very expensive cost of living area), I'm not here to brag, I'm here to give people hope. It's possible, we can all do it.
Bat V. on June 25, 2020 at 5:08am
I took personal loans for total amount of 300 000 i “spend” all the money I’ll file for bankruptcy by age of 36 I’ll be all clean with fresh cash in pocket have to love American credit sistem.
kumar on July 2, 2020 at 12:20pm
The analysis does not take into consideration of the savings/equity in the primary home.
E on July 6, 2020 at 2:27pm
I agree with Alex. There's no way people in that age bracket are spending over 4 grand a month. Please explain how you came to that conclusion?
ruben r. on July 13, 2020 at 11:19am
58
Yvonne L. on July 19, 2020 at 7:16am
NetBank account $63,720
Caitlen on August 2, 2020 at 12:18am
I’m 30 and don’t make 4,000 a month, so I’m definitely not saving that amount! Even with my boyfriend’s income we both don’t make that amount and rent is higher near Chicago. I’d need a separate income just to save that much and there aren’t enough hours in the day. I save what I can and don’t even have student loan debt, children, or a monthly car payment as I bought in cash a used vehicle. So yeah, this is pretty unrealistic. Additionally, who pays over 8k for furniture? That’s a rip off! These numbers must be for those blessed making 100k a year. Must be nice.
NH on August 13, 2020 at 5:57pm
Why don't you consider Social Security? This calculation will not look so scary if you subtract Social Security (for which almost all who work will be qualified) from monthly savings. According to this calculation, the goal of all young people should be saving every penny and do not enjoy life, which is not true!!
Dr. C. on August 20, 2020 at 4:09pm
I think it might be better to use the median income in the analysis instead of averages. Averages can be really skewed by few ultra-rich people. Anyways thanks for the breakdown.
Ricardo on August 30, 2020 at 11:23am
I appreciate the article. Since this is what "should" be happening, you have to wonder how ugly it is going to be when millennials reach retirement age and having nothing saved. We are finally getting around to recognizing how crippling student loan debt is. I just wish more young people knew how much better their older years would be if they could put $200-400 monthly into retirement. Many still think that the stock market is like gambling...when in reality it is the most reliable way to achieve wealth.
AA on September 11, 2020 at 8:07pm
What a silly article. Where in the world did you come up with such basic multiples? 1x-3x-5x-7x-9x-11x?! Ooh... 2x more per decade. Nice and linear. Dumb. Sad. Why does one need MORE savings at 80 than at 70 and more at 70 than at 60? Makes no sense. And why is there no guidance for 90 year olds and 100 year olds? I'm assuming they should have 13x and 15x annual income? I don't even want to go into how assumption of the same income at age 30 as at age 60 is demotivating for young savers. I know it's just an "example" but it's near useless if the "example" is nonsense. And in your 30's you're supposed to triple your nest egg from 1x to 3x, while in your 40's you can pretty much go from 3x to 5x by saving nothing and letting the market appreciate. You only require a 5.2% return on your money for this to happen. Please delete this nonsense. You're misleading people and worse, probably discouraging young people.
HL on September 27, 2020 at 4:11pm
The issue is this is based off of income. For people working full-time in low paying jobs these goals are simply unattainable. I went through university (so I started working at 22), and now at age 30, I am in a job where I earn 50k/year. Prior to this I only had 8 years to save money when my income was in the 30k to 40k/year range, while paying off student loan debt. It would be nice if the economy was able to give young people fulltime jobs where we can actually afford to save and not live paycheck to paycheck! I don't think that the writer of this article actually understands the salaries and rate of pay that younger people earn.
TGMC on October 2, 2020 at 12:07pm
I'm 32 and currently have more money to my name than ever. i have $15,000
Ash on October 5, 2020 at 4:01pm
When you say twice the income at 35 years, do you mean the twice income at 35 years or the salary I used to make in my 20s.
Ash on October 7, 2020 at 1:57pm
Does this 3x times at 35 include assets like primary home?
Andre J. on October 11, 2020 at 7:25am
I love, love, love to hear Millennial's cry about their finances. Who put you in that position?? YOU DID!! Your degree in gender studies and art history make great conversation while you're working the starbucks counter. Stop buying $1,000 iPhones every other year. Stop wasting money on take out food delivered by uber-eats or door dash (20% delivery fees) and cook at home. I know 30-somethings that go out every fri/sat night bar hopping and drop $150/couple a night. Stay home, invite friends over. 1.5L vodka is $25. There isn't a single Millennial or Gen-Z that wouldn't wilt like a rose in the desert if they had to live 3 days like people went through during the Great Depression.
Tony E. on October 14, 2020 at 9:01am
The key to saving is to try to keep expenses stagnant. Then as your income increases, the increases in your salary go into savings. I didn't change my spending habits when I went from $45k/year to $55k/year and thus I'm able to put 13% into my 401k, pay off my student loans, and get a safety net of ~$12k. It was just 3 years ago that I had <$100 in savings and just got lucky to build my nest back up. I'm 29 and have 3 kids.
JH on October 15, 2020 at 1:25am
Andre J. just hit a home run into space!
Nicholas S. on October 18, 2020 at 12:26am
HAHAHAHAH joker laugh... love it. poor and ready to high five the fact you have written an article that meets the basis of 15% of your readers. Thanks...
Millennial on October 19, 2020 at 10:55am
Just to throw this out there in reply to the post about “Millenials”. I am a millennial. I went to college and obtained a degree which I have put to good use. I have a decent income, 20% of which goes to retirement. I have six months salary in savings and I help my parents financially. So when you post about us “millennials” who couldn’t hack it, think again. I came from a low income family, first generation college student, never had a hand up in my life, and made a comfortable life for myself and my family. I know how to get by with next to nothing and how to make something out of it. It can be done, it is being done. Think again before you discredit others.
SFE on November 1, 2020 at 7:13am
Excellent! Will be sharing with my nieces &nephews for simple baseline guide.
Ally on November 1, 2020 at 9:21am
We love hearing this, thanks for reading.
angel w. on November 5, 2020 at 6:07pm
My age is 17
Bookdoc on November 6, 2020 at 8:25pm
Since when are parents responsible for college expenses? I came from an upper income suburban family and was told if I wanted to go to college I had to earn it. I got a scholarship and campus job and had less than $3000 debt when I graduated in 1973-paid off by 1978. My daughter was told the same and she went to the Navy's Nuclear Power school and then did 4 years on a carrier. When she got out she had a ton of job offers and no debt. Something people should consider...
Sara on November 10, 2020 at 3:04pm
Andre J - no need to paint with a broad brush. There are plenty of millenials who grew up poor, and those kids know how to stretch a dollar, they've learned it watching their parents slip into lower wages, longer hours, and higher prices for basic staples.
James D. on November 11, 2020 at 6:15am
I live in KENTUCKY! There are about 10 people I know of that make that much!All the rest are in the 20 and 40 thousand range! Mean average where I live is 34,000! No way!
RJLB on November 12, 2020 at 4:45pm
How sad this country is for its poor, minorities and seniors. Capitalism is the religion of death.
B.B on November 15, 2020 at 11:33pm
As a 30-year-old these numbers can be obtained. I had student loan like most are crying about along with a mortgage in my 20's. However you pay yourself first(401k) pay your bills and learn to live off the rest. I don't have the newest items but still enjoy life. Most meals are planned and made for the week. Being said at 30 doing these thing have a 6 figure retirement so far and emergency savings of 6 months. With a wife and child family income of 60k it can be DONE!
TC on November 16, 2020 at 7:35pm
I am a millennial, started my own company, make $100K+ a year, own my house, and taking financial/physical care of my live-in Mother-in-Law (baby boomer). It’s ridiculous to make comments about an entire generation.
Rafael O. on November 18, 2020 at 6:45am
This is a totally wrong focus, the point is you have to invest rather than saving, all my life I try to save what happen, nothing. But When I start to invest, that is totally diferent, Last year I started with $500, now I have almost $8000, by next year my proyection is $70,000 in 2 years, $500.000. If I try to save i dont get nothing. Because the salary is limited, my goal is in (5) years get ghe finantial freedom. ($5,000,000)
Scott on November 18, 2020 at 10:45am
I'll admit that most of these numbers are ideal for someone who has the discipline and edcuation on how to handle finances (not a degree, but a general understanding). I was fortunate enough to take a pretty hefty finance class at 15 and now as I am pushing 30 I was able to make a lot of smart and calculated moves with the money I have made (started working at 16). I still had a great time in highschool and through college, but I did not go out drinking, partying hard, or buying frivolous/brand new things I did not have the money for. Because of the hard work I put in earlier in life (and applying to dozens of scholarships) and my parent's encouragement to excel, I am in the numbers of someone who is in their mid-40's for retirement planning. I may even be able to "retire" early in my 40's/50's and work for fun after that. These are hard truths, but the most valuable commodity we all get is "time." Working uphill by having student loans, being uneducated in finances, and party
Jimbo on November 18, 2020 at 6:01pm
You are making an assumption that a retiree desires to leave money to others when passing away. Otherwise, why would an 80 year old need more money than a 70 year old. If you like to give advise based on averages ( 61 k), consider average life expectancy. Do you assume the retiree's investments match or exceed inflation? What about differences b/w single people vs. couples? Your 80 year old will likely leave excess 'money on the table' & not fully enjoy his or her life if life expectancy is anything close to average. Sure, you don't want to cut it too close, but we don't live forever and perhaps may prefer to enjoy the fruits of our labor rather than permitting someone else to do so.. Fully state your biases & assumptions before claiming to give useful guidelines to others.
Amanda M. on November 22, 2020 at 4:29pm
Hey
BQ on November 23, 2020 at 11:31am
I love watching people complain about how the system is against them and this is all unobtainable. In reality, it was stark obvious--no factors hidden or variables obfuscated, right out infront of them--and people still made the poor financial decisions regardless. I have no sympathy.
BM on November 25, 2020 at 11:44am
I love this article. It is extremely helpful and you do not have to pay for this information. I am 55 years old and is just now in a position to start saving. I am going to start small and do the best that I can. Thanks Ally.
Ally on November 25, 2020 at 11:46am
Thanks for sharing, BM! Good luck.❤
James W. on November 26, 2020 at 5:44pm
On saving for retirement here is my thought. Savings on hand is an important cornerstone to a great retirement. So is a nice pension. But the most powerful tool is the retirement of debt. Keep in mind for every $100.00 per month of debt service you retire you net $100.00. There is no tax at all on that except for the lost interest deduction for real estate loans. Still better to have the income. And debt reduction does not increase your tax bracket. Work an example out and see for your self. It’s huge. James Woodall
LL on November 27, 2020 at 3:47pm
Interesting article. I'm 34, have some college education, but started my career at age 19. I own two homes and have managed to save 650k between retirement and savings. I don't live lavishly, but comfortably and have found saving to be both fun and easy. As I've gotten older, I've realized there's just not a lot that I need and I've learned to question my wants. Here are some things I do to save. 1. Save tax returns 2. Save 10 - 15% after taxes using automatic savings transfers 3. Max out 401K contributions 4. Invest in real estate 5. Save bonuses 6. Question your wants. If I desire something I usually sit on it for a month. If I still want it afterwards I buy it.
Ally on November 27, 2020 at 4:14pm
Thanks for sharing, LL. Keep up the great work.
R on November 27, 2020 at 8:18pm
This is all good advice. If the numbers seem sky-high, remember that in different parts of the country expenses and salaries vary widely. Sometimes in life you get a windfall -- a settlement or inheritance. Set that aside as your emergency fund! Never having extra money, I always worried about not having enough savings -- but now that I'm 69, those little growth stocks I began slowly accumulating in an IRA back in my late 30's are now exploding and now the mortgage is paid off and we have a nice nest egg. You never know, just keep trying and it might work out better than you imagine!
Eh on November 28, 2020 at 1:53am
All definitely possible, 41 years old. 188k in savings. Own a home with 50% mortgage, own another home outright that collects 600 a month passive income. I also have 180k in 401k and make under 100k a year. Also forgot to mention that I own 5 cars all payed off and 5 bikes with no payments.
Richard on December 4, 2020 at 6:48am
The numbers used are so far off my own personal numbers I find the above of no value other than seeing how far off people are off with their thinking and spending. The only numbers I would agree with might be the college fund. The rest are way too high except emergency fund. I would think $ 3000 - 4000. However I have several times more than that. $ 20,000 for a car. You can get a great car for less than $ 10,000. Last there were times in my life I had less than $100 to my name. But I learned and keep pushing to a goal in all things. Some levels took decades to reach.
Monica M. on December 8, 2020 at 9:48am
Did you look at all that information about money for old age day. That is some Crazy stuff here 😂. Not beneficial at all if you are talking about THE LONG TERM GOALS. Well how long? Like into the here and after long term? You need to be specific with immigrants like me😉 . You know self taught. No fancy elite Diplomas on my wall, no time for school. Was always working trying to build for the old age you know? Would have been nice though. Boys and girls who wants to BET, okay, since you like MONEY I will make the exception just because you are still reading, A WAGE on " bet you can't quote a meaningful scripture and tell me where to find it in the bible". No cheating, can't go look one up and then tell me. Can I trust you? Hmmm🤔 All that thought process, research, time put into being SAFE AND SECURE for OLD AGE DAY. 🤭 No wonder GOD is furious with us and put all of us on time out for bad behavior. If we are doing this that is written in this article th
DrDover on December 11, 2020 at 1:29pm
Over double the 50 yr. old savings recommendation. Excellent! I guess I'll quit saving and just start blowing money on stupid stuff....LOL
John on December 13, 2020 at 12:22am
33k for a wedding? NOPE.
Dont b. on December 13, 2020 at 6:27pm
Hey folks. People see a number and they sometimes get upset and reject everything. The key number to take away in the article is 15% savings rate. Your ability to retire really depends less on you income and more on your savings rate. It also makes budgeting easier. The easy way is when you do your taxes, take your bank statement from the end of last year. Say you have $1,000. Now look at it again at the end of the year. Say you have $2,000. So you have a cash fund savings of $1,000. Now, how much did you invest in a 401K. Say you put in $4,000. Great. If everything else is gone (no assets remaining) then you spend the rest. That's your consumption. If you made $30K, that means your consumption was $25K. You're doing pretty good. If you made $300K that means your consumption was $295K. Your in trouble. You'll never make it. Also, after your emergency fund, if you've got 20+ years until retirement....stick it in equities and forget about it. Get the growth. Th
John M. on December 13, 2020 at 8:26pm
What rubbish. Why should an 80 year old have 50% more savings than a 60 year old? If savings is not for spending in old age what is it for? By extrapolation, I guess a 100 year should have $1,000,000 in savings?
Harold B. on December 22, 2020 at 5:45pm
Right now you can’t make much money in the banks the interest rates are too low they should never have gone the low
Boomer on December 24, 2020 at 6:50am
Everyone should read "Millenial"'s response above and stop whining. At best these estimated retirement savings are 1/2 what they need. This is about discipline not income.
D.P. on December 26, 2020 at 11:14pm
Doesn’t add up... I know every financial management company uses these statistics but I think it’s a scare tactic to get people to invest as much as they can. How can you get double your savings from age 30 to 35 with only 15% each year. Last time I checked 5 years at 15% doesn’t double the amount. So you either need to suggest 20% a year or change how quickly your investment needs to grow. If you are claiming compound interest plays a part, then the same % of compound interest should be calculated as the person gets older. At just 7% interest the investment will double nearly every 10 years without even adding any additional funds... If you think $700,000 is needed at age 80, then work backwards including interest growth and give folks a reasonable goal for age 35, 40, etc. I guess it helps financial advisors if people always think they are behind...
Random on January 2, 2021 at 1:13am
1st off a job is just that, a job, your employer is not your friend. Use it as it uses you, move on when you can. Move around all of the USA as needed to grow your income. Be frugal and prepare for the future but live in the present. If one limits themselves to saying I'm only going to work in one area then they need to take that understanding to realize they just limited themselves.
Steve P. on January 2, 2021 at 7:58pm
I think I made a mistake. I made saving for kids (2) college Priority #1 first 18 years. Retirement Priority #2. Mistake. Kids can take jobs and get loans, whereas I can’t earn it back near retirement. My kids have zero college debt but I wish I had more going into retirement.
Russell L. on January 6, 2021 at 7:11am
I have a different view on saving. Granted YOU must safe for the future, unexpected bills and the like. I question how much CASH MONEY should you have? I consider cash money in the forms of paper money, stocks, any investments that involve a cash payout. Today our country is so far in debt, we PRINT MONEY to allow the economy to survive . But how much is a dollar worth? Should the economy go broke. What will people do with WORTHLESS PAPER? Diversify your savings in anything you can sell,
Mike on January 10, 2021 at 9:10am
Poor advice: you don’t save for retirement, you invest, real estate, stock market etc. I prefer real estate, the name of the game is cash-flow to supplement your income from a job eventually replacing your income. I guess you have to save money to have to invest, but not to the point of mimicking your age that’s poor advice, with the rate of inflation which is much higher than 2% and the bank paying below 1% interest, you’ will fail. The goal is to buy one rental property per year, and not when the market is in a bubble like the stock market is now Or back in 2003-2008 when the real estate market was a bubble. In both cases you can’t ignore the fundamentals, speculation is not investing that’s gambling. The returns I.e the cash flow is the key, not betting on some idiot coming behind you paying more. Many will get hurt in this next stock market bubble. The smart money is moving to real estate now, those that pull out of the market timely, then the real estate bubble w
marthasjackson@gmail.com on January 14, 2021 at 9:43am
Why would someone 80 years old need to save $681,000+ when it says they should have an account with 21,000+. Isn't that a contradiction of facts. Once someone is 80, savings should not be the highest priority unless you are stating that you are meant to let the next generation inherit your hard work.
Victor on January 19, 2021 at 12:03am
Where do you invest Rafael O. on November 18, 2020 at 6:45am so $500 can turn $8000 in one year? I also like to do that but where to invest?
alex g. on January 20, 2021 at 7:56pm
A person making 50k can barely live much less save. I have a net worth of $3000000.. Also an income of $120000. I don't have to skrimp on anything. Can i buy a Bentley. Yes, but i don't. i am stunned by prices on meat , fish, and upscale foods. I buy them because it means nothing to me. People you are telling to save will have no access to any great food items , Good restaurants, Sporting events are so expensive that I see no way a normal family can attend, I guess the bottom line is credit cards. Owe $10000 pay 50 a month. I hope this all works out before they start calling me to send in money.
Matt on January 23, 2021 at 10:04am
At 32, I am only barely making this happen. I have 53k in my 401k but only by contributing 11% personally, 7% matching from employer, and an extra 4% yearly deposited by employer. I started working at 15 and when I hit 23 after college I cashed out my 401k, paid off student loans, and bought a house. I kinda feel like it was a good decision even though I had to start over with my 401k. This stuff is tough...
Casey on January 26, 2021 at 5:33pm
I'm behind on the way to 40, but at the rate I'm saving and investing will have reached the end retirement goal by the time I'm 50. Posting this, because a lot of comments are mentioning "save young". I don't disagree with this, -it's the smart way-, but it's still very well possible to save if you focus on it. In other words, don't feel hopeless and acknowledge your commitments towards the end game regardless of when you start. I didn't have the same access to things when I was younger as I do now.
Michael on January 26, 2021 at 10:44pm
Most Americans that I know, live from hand to mouth and have no savings at all. I'm the rich one in the family, so saved sister and brothers house-12K later, yet I only have 300K to my name, but have a military retirement. The reality is, most people have no savings, since the taxes in the US prevents most from saving any money
O. on January 29, 2021 at 9:08pm
Huh it doesn't have the amount of savings for kids and teens...
Anonymous on January 30, 2021 at 12:55pm
These numbers are WAY off. According to this article, an average 25-34 year old spends $4,705 a month. In order to be spending like that and not going into debt, you'd have to be making at least $56,460 per year. Note, this isn't even PRE tax. This is POST tax, $56,460 per year, at 25-34 years old. Compare this to the median income for an entire household in the US -- $68,400. Where did they gather their data at, the Hamptons? Holy crap.
dean h. on February 1, 2021 at 5:33am
The statistics you quote are obviously missing the point of most personal realities as noted in the interesting, humorous and stark responses submitted below. I think you focused far too heavily on the "savings" theme and ignored the "investment" aspect that allowed this 79 year old man to enjoy life far beyond any "savings rule" you have presented. Consistent investments ( however small and in many forms such as real estate/ stocks/ commodities compatible with your interests and demeanor) starting in ones 20s-30s is the best possible solution.
Cooper on February 3, 2021 at 10:16pm
Dang, I believe these numbers are way to low. Things to consider—-As a retired guy now, I started saving for retirement immediately upon graduation from college. What did I do? First year out was ‘five year’ IRS income averaging that saved me about $3K. (~1980 monies that could almost buy a small new car at the time). No problem, I didn’t spend it. I invested it right away. A start. Note: I started working at age 12—yard work, farm work and had a real job from age 16 forward. I always had a job and sometimes two. I worked my entire college time including full time summers and during the school year as I was on my own from age 18 forward. I lived cheap in college with a roommate. After college I stayed living the same college expense and stock piled monies right away for several years. Think: safety fund. After that, I rented a room in a house from an owner I rarely saw. Cheap, but nice. Again, no lease and saving monies while having a blast. Eventually, I bought a late m
A.W on February 6, 2021 at 6:11am
"Considering that the average 25 to 34 year old spends $4,705 each month…" I know I'm Canadian.. but our HOUSEHOLD income is just under $80k a year and after tax, our take home pay is $4000 a month. Where in the states are these average 24-34yr olds working? Your taxes a different.. but the average late 20's adult is surely not making $80k + per year in the US? Example: $30/hour (which is NOT realistic) × 40 hour week × 52 weeks = $62400 BEFORE TAX. Surely people don't think the average person is making $30+ per hour.
Rich on February 10, 2021 at 3:46pm
I have about 175000 in savings, my,monthly income is 1700,do i have a problem thanks rich
Rich on February 10, 2021 at 3:47pm
I’m 76 years old.in my last comment. I have 175000 insavings, and 1700 a month income
Nola on February 11, 2021 at 5:02pm
What 80 yr old needs 681 thousand in savings?
Ingo S. on February 12, 2021 at 10:24pm
How do u figure to 11times my Income ? What u think Soc Sec pays this Days sure not 100K ? Besides my Kids make more then i do ! Some of my GK way over 100K a year !
Marjorie R. on February 16, 2021 at 6:00pm
I wish I knew all this information when I was in my 20’s or even 30’s I definitely would be in a much more comfortable position comes retirement. I’m still happy for this information because it will help me tremendously.
Savings f. on February 17, 2021 at 5:10pm
The table above is really illogical. 1x your income saved by age 30 seems like a reasonable starting point, but as the article states, saving early takes advantage of the time value of money, but then goes on to say that you should have 3x your income saved by age 40. So, we need to triple our savings in 10 years? Then we need 5x our income by age 50. But from 40-50, it needs to go up by just 67%? Then from 50-60, go from 5x to 7x so grow your savings by just 40%? If you make a decent contribution and invest your savings in the stock market, it seems reasonable that you can double your savings every 10 years. So, by 40, you should be able to save 2x your income, by 50, 4x, and by 60 8x. I really dislike that out-dated table that just has people throwing in the towel when they are hopelessly behind at 40.
Elle on February 20, 2021 at 11:51am
I wish $63k was suffficient for a down payment here :( I'll need $200k..
Larry on February 22, 2021 at 7:01pm
Why do you need that much at 80, at some point the amount should turn around and go the other direction
Grandma on February 22, 2021 at 7:20pm
I am 53 and have absolutely no savings. I've been a waitress my entire life also a single mother now raising to grandchildren. Is there any hope for me to retire?
PAT R. on February 23, 2021 at 3:34pm
i'm 82 ?????
Wayne M. on February 24, 2021 at 10:11pm
These numbers are crazy. I made my first million dollars by age 37. That was from a base, not from zero, but from LESS than zero (because I owed on student loans). I did not start a successful business or inherit money from a previous generation. I made this money simply by working as a professional (Engineer) and saving and investing. I just don't see this as being "lucky". I wasn't lucky. It was just saving and investing. I was about as average as you can get. It took me 13 years to go from a negative net worth to a million dollar net worth. I never had any help from my parents or anyone. This is definitely possible. In fact, I think this should be standard. Oh, by the way, the million dollars in 1997 is quite a bit more now. In 2021, it's more like 2 million dollars, so adjust your expectations for that. It's really not that hard. 1997 was before the internet bubble, so this wasn't an anomaly due to that. That period of time was good for investing, but I doubt it was on
Amy on February 25, 2021 at 4:50pm
Unrealistic money goals when most people have to pay off cars, homes, college ect. Your better to aim for saving 20-30 a paycheck each month . Little savings is better than no savings.
Kitty on February 27, 2021 at 3:11pm
Please tell me how most people can save very much money when there are ongoing economic problems like , for example, rising cost of living, disasters, sickness, unplanned events, accidents, rental increases, etc. ?
Will G. on February 28, 2021 at 8:06pm
Capitalism is the religion of death? Please, capitalism made the USA, The greatest country in the world. It gives each of us the opportunity to become a business titan if we want it and work for it. It creates jobs for those more comfortable with a “paycheck”
Thersa S. on March 5, 2021 at 12:32pm
I don't know what cities you are using by saying most 25 to 34 year old people spend 4700 dolars a month. Where I live most people don't even make 2500 a month. So those are very unrealistic numbers.
Doug on March 6, 2021 at 6:27pm
I have been retired for over 20 years. What these people project is useless. When you retire your living expenses go down significantly. Working is expensive. The cost of commuting, the cost of daily lunch, coffee, I would buy breakfast on the way to work, special parties at the job, charity collections, It all ads up. With COVID and people now working from home they are finding how much extra money they now have. That is what retirement is like. You do not need that much money. Think of what you really need, forget the wants, then how much do your needs cost? That is what you need for retirement.
Michael on March 7, 2021 at 4:51am
Seriously? Why do this to people? Who is this for anyway? If you haven't noticed, most of the world is either out of work and those that are, make just enough to barely get by. Pay check to pau check. Stop putting things into good peoples heads that are unrealistic, fantasy! You make them suffer, panic, and wouldn't be surprised if scared some to the point of doing something dangerous to themselves. So stop hurting people by showing how much they will not be putting away , show them something realistic, show the un 1 percenters what they can do to get y a bit better, how they someday may find a way to just get by living with family, or inviting others to live with them to help share the burden, Be realistic. Stop hurting people.
G on March 8, 2021 at 10:19pm
"Considering that the average 25 to 34 year old spends $4,705 each month…" The average is definitely not the number to go by. You should be reporting the median, because that comes out to a spend of 56,460/year which is about 20k more than most 25 year olds can spend after the taxes on their wages. Would love to know where your stats come from... most people in Boston I know are making 45-60 k starting out from a high level business school, and if they are making more its close to 75/80k before 30. And thats without student loan payments taken away from their monthly spend. Kinda wild numbers here..... might want to go by medians not averages as the median national individual salary is around $48,000 and family annual income is around $78,000, which varies a little by source, but seriously.... bad data like this can be very misleading to the general population. You should be looking at income not consumer expenditure, because expenditure does not give an accurate picture of income
Sunnydayz on March 10, 2021 at 8:59am
I found this article insightful. We all have reasons why this isn’t us, it is just an article people. If you let it ruin your day, you are missing the point.
giberish... on March 10, 2021 at 2:26pm
if you want to live on a just above poverty level. 7x your income at age 60, really? that's off by a factor of at least 2x. good luck with these numbers...
Christopher on March 19, 2021 at 5:50am
allowed via email 📧
Harry on March 22, 2021 at 1:33pm
By age 80, shouldn't the total savings required be going down? My comment is based on the fact that by age 80, the average person has very few years left to spend that 11x nest egg.
Hoàng L. on April 6, 2021 at 4:09pm
Me 30 years old, No debt. Spend me 20s traveling the world but lived a very frugal lifestyle. The pandemic and Blizzard that destroyed me town opened me eyes. Me now have 401k: 20,500 Roth Ira: 6,700 Me emergency: 14,000 Me family that owe me money: 5,000 Me no where close but me plan to get there soon! Lovely article, me shared with peers!
jenna t. on April 21, 2021 at 6:25pm
I got to many racks can't fit them in the safe
Troy o. on May 5, 2021 at 3:42am
I just turned 43 recently and have almost 7 times my salary in cash and in my 401k. I don't own any properties at this time. I've been working at the same company for almost 16 years and my base pay right now is about $97,100. I'm not getting any overtime in 2021, but I did in the years before this pandemic and made as much as 113k in 2019 and 109k in 2020. All I have is a bachelor's degree at Cal State Fullerton. I started at 33k per year about 15.5 years ago. I work hard and try to save as much as possible. My only regret is that I didn't contribute the max to my 401k the first 11 years of my employment. During the last 4.5 years, I've been contributing near the max allowed by the gov't with a 100% match from my employer up to 5% of my pay. My 401k balance the last 4.5 years is more than double my 401k balance the first 11 years. When I was younger, I wanted to see the money in my money market account. One day, I had a conversation with a friend during a ride on a camping tri
Richard T. on May 20, 2021 at 10:58am
This Info is Nice to Pass it on to Others.
Average J. on May 27, 2021 at 6:57pm
There is no way the Average Joe can be expected to keep these numbers. Whoever wrote this is way out of touch with reality.
Margaret on July 17, 2021 at 12:01am
I'm a 34-year old female - and doing generally well. While having ample education has been helpful (masters degree), so has my willingness to seek out opportunities in other fields that seemed more lucrative. I went to school for one thing, but doing another - which isn't unusual. Despite my passion, I have sought to "follow the money" while trying to find a job that I find tolerable. And finally, I attribute the following few things to really helping me get to where I am today (financially): 1) always committing to saving FIRST (retirement, brokerage account, and regular savings) when I receive a paycheck 2) Putting the majority of any pay increases/bonuses in savings immediately (lifestyle creep is a thing!) 3) making life decisions based upon income (where to live, what car to buy, what kind of wedding to have, number of kids, etc.). Just b/c I want 2 kids and a three-bedroom home does not mean my income will accommodate those desires whilst still saving enough. 4) visiting w
Margaret on July 17, 2021 at 12:01am
I'm a 34-year old female - and doing generally well. While having ample education has been helpful (masters degree), so has my willingness to seek out opportunities in other fields that seemed more lucrative. I went to school for one thing, but doing another - which isn't unusual. Despite my passion, I have sought to "follow the money" while trying to find a job that I find tolerable. And finally, I attribute the following few things to really helping me get to where I am today (financially): 1) always committing to saving FIRST (retirement, brokerage account, and regular savings) when I receive a paycheck 2) Putting the majority of any pay increases/bonuses in savings immediately (lifestyle creep is a thing!) 3) making life decisions based upon income (where to live, what car to buy, what kind of wedding to have, number of kids, etc.). Just b/c I want 2 kids and a three-bedroom home does not mean my income will accommodate those desires whilst still saving enough. 4) visiting w
David G. on July 25, 2021 at 7:13pm
I find this to be very accurate. I had the Marine Corps pay for my college education, and have made enough to retire at age 57... not that I plan on retiring yet. I started out making $9 an hour after college at an insurance company and was told by my dad to contribute to my 401k to at least the amt. that was being matched and no less. Every year when I received a salary increase, at least half had to go into my 401k. I lived below my means... my daughter told me something the other day that I told her when she was young...." Live like no one else, so that you can live like no one else." It all came back full circle. It stuck with me... and now her. The numbers do make sense
R.G. on August 9, 2021 at 8:36pm
Thanks for this interesting and helpful information. A lot of this is about starting to save SOMETHING regularly and as early as possible and also making choices; being willing to say “no” to yourself sometimes. The time power of savings is evident. Chip away! It works!
Gilbert on August 16, 2021 at 10:55pm
I'm 66 yo retired and don't have much saved but my retirement income (military plus Social Security) more than suffices. I now can save 40% of my income. A lot depends on your retirement income.
J W. on August 20, 2021 at 10:59am
As a reply to DM, In am 26 and my salary is 65k a year. I also work fun side jobs to save additional money. I never even finished college because I was already working in my field. The opportunities are out there, you just need to find them and stop making excuses for yourself. Be creative. Take life into your own hands. I started my Roth IRA when I was 22.