As you navigate through life, it’s likely your goals will change and evolve, both personally and financially. But, 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.
You won’t find any hard and fast rules regarding exactly how many dollars you should save based on your years on the planet. But using your age (or a nearby range) can be a helpful guidepost when calculating an estimate of how much money you should save for various life events. Just remember: Don’t get discouraged if you need to hit pause or fall behind. You can always get back on track.
Aiming for an ideal amount to set aside (or verifying that your super-saver tendencies have you on track) can help you better prepare for whatever the future holds, such as:
1. Emergencies (like a natural disaster or unforeseen medical troubles)
2. A comfortable retirement
3. Pursuing your dreams (a new house, your child’s college education)
4. Prioritizing your goals
Whether you’re fresh out of school, well into your career, or forging your own path through life, it’s never too late to get started saving or to check to see if you’re heading in the right direction.
So, how much money should you have saved?
First things first: There isn’t a one-size-fits-all number. It’s important to keep in mind that savings — and savings goals — are subjective 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. It just takes a little bit of math and insight to figure out yours. That’s why we consolidated several tools and benchmarks for you in this guide to help you get started.
Because so many factors come into play, don’t be discouraged if your savings account doesn’t look like the examples provided. The numbers are based on national average and median income and spending data — and may not reflect your lifestyle!
Everyone is different, but if you’re wondering, “How much should I be saving for my lifestyle?” let the following savings by age benchmarks and tools act as a guide to help take some of the guesswork out.
Savings for Emergencies by Decade
Fast Answer:
- An 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).
- Use our emergency savings account calculator to see how much you should save per month to reach your personal emergency fund goal.
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.
According to Bankrate, only 39% of Americans have enough cash on hand to cover a $1,000 emergency. If you haven’t started building your cushion yet, there’s no better time than the present.
Ideal Emergency Fund by Age
Your emergency fund should contain 3 to 6 months’ worth of expenses. Considering that the average 25 to 34 year old spends $4,705 each month…
| By Age... | Ideal Savings Balance* |
|---|---|
| 30 | $14,115 to $28,230 |
| 40 | $17,799 to $35,599 |
| 50 | $18,846 to $37,693 |
| 60 | $16,554 to $33,108 |
| 70 | $14,067 to $28,134 |
| 80 | $10,794 to $21,588 |
*The amount you should save will vary, based upon your monthly expenses.
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.
According to the 2018 Consumer Expenditure Survey, the average 25- to 34-year-old spends $4,705 each month on both essential and nonessential expenses (including rent or mortgage, insurance payments, auto financing, and more), so the average 30-year-old should have between $14,115 to $28,230 tucked away in accessible savings.
Keep in mind these numbers are based on national averages from the U.S. Bureau of Labor Statistics and may not resonate with your lifestyle, as everyone’s situation is different. If you rent an apartment, don’t have children, and don’t drive a car, your emergency fund can likely stand to be a lot lower than someone with a mortgage, children in school, and monthly car insurance payments, for example.
The best way to figure out an emergency fund goal that makes sense for you is to track your own spending for a few months to see how much you actually need month-to-month. Another method for mapping out an emergency fund goal that’s more specific to your unique financial situation is to 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.
Where you keep your money is also important. An emergency savings account should 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 will earn interest at a competitive rate — meaning it’s growing all the time.
Expert Tip: Three to six months’ worth of expenses can feel like an overwhelming savings starting point, especially if you’re living on a tight budget. Remember it’s perfectly okay to start with a smaller savings goal, whether it’s one month of expenses, a $1,000, or even $100. Any little bit you can put away will add up! Then, use our calculator to find out how much you need to save to reach your ultimate goal.
Retirement Savings in Your 30s and Beyond
Fast Answer:
- A general rule of thumb is to have one times your income saved by age 30, twice your income by 35, three times by 40, and so on.
- Aim to save 15% of your salary for retirement — or start with a percentage that’s manageable for your budget and increase by 1% each year until you reach 15%
- User our retirement savings planner to see how you compare to other retirement savers.
When it comes to saving for retirement, the early bird gets the worm. The sooner you start saving, the longer you have to take advantage of the power of compound interest, which is the interest you earn on your original principal and any accumulated interest.
According to this survey, 64% of Americans could potentially retire broke because they lag behind on saving. Like we mentioned earlier, a general rule of thumb is to have one times your income saved by age 30, two times by age 35, three times by 40, and so on.
Let’s consider an example using data from the U.S. Census Bureau. According to 2018 data, the median household income is $61,937 (though this varies state-by-state). Based off this number, a 50-year-old should have a retirement savings account of about $310,000, if you stick to that plan.
Ideal Savings for Retirement by Age
The amount you should save for retirement is based upon your age and your income. For example, it is recommended that a household earning the U.S. median of $61,937 save the following:
| By Age... | You Should Have Saved... | Which Translates to... |
|---|---|---|
| 30 | 1x your income | $61,937 |
| 40 | 3x your income | $185,811 |
| 50 | 5x your income | $309,685 |
| 60 | 7x your income | $433,559 |
| 70 | 9x your income | $557,433 |
| 80 | 11x your income | $681,307 |
Remember, these numbers are examples based on estimated household earnings. When using this pattern, the amount you should save for your own retirement will vary based on a few things:
- your income
- your planned retirement age
- the kind of lifestyle you want to have in retirement
In other words, 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. Plugging the numbers into a retirement calculator, like Bankrate’s, can give you an idea of whether you’re on pace with your savings progress.
In a perfect world, starting in your 20s and until retirement, you would put aside 10% to 15% per paycheck in your 401(k), 403(b), or a similar tax-advantaged retirement account, like an IRA.
But you may be starting a new career, paying back student loans, or have other financial obligations and aren’t able to save 15% of your salary all at once. 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.
If you are currently paying back loans or other debts, don’t panic. 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.
Expert Tip: You can turbocharge a 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.
If other financial constraints keep you from saving until later in life, consider taking advantage of what’s called a “catch-up contribution.” Some plans let you to 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. 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 Individual Retirement Account (or IRA), can be used to supplement your retirement savings.
Saving for Future You: Family, Fun, and More
Fast Answer:
- The costs for larger life expenses, like new homes, cars, weddings, children, etc. vary.
- Research the average cost of these expenses and use our savings goal calculator to help set your savings goals and plans.
- Prioritize your savings when aiming to save for multiple large expenses at once.
As you make progress saving for (not so fun) emergencies and retirement (the end goal), 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 can give you an idea of how much you need to set aside.
Savings for Celebrations, Cars, Kids, and More
| If You're Saving For... | Plan to Save... |
|---|---|
| A vacation | $1,979/person |
| New furniture | $8,176 |
| A car | $20,000 to $55,000 |
| Down payment for a home | $15,930 to $63,720 |
| A wedding | $33,931 |
| College for your kids | $35,160 to $203,600 |
Expert Tip: The amounts above are based on averages, meaning the actual amount you’ll need to save will probably differ, depending on the circumstances. For example, the cost for a two-week vacation in Hawaii will be drastically different than a weekend getaway to your local state park.
Also some, like saving for furniture or a vacation, may be short-term financial goals. But others — a down payment on a house, a wedding, or college, for example — might take a little longer. When you’ve got so many goals, it’s understandable if you don’t know where to start.
Prioritizing can help.
Say you want to get married in the next two years and purchase a home three years after that. You can afford to save $1,500 a month towards both items. In this instance, you might sock away $1,000 each month for the wedding and $500 for the down payment on a house. After you say, “I do,” you can redirect that $1,000 over to your home savings fund.
The buckets tool in our Online Savings Account can help you organize your savings goals into separate digital envelopes, eliminating the need to open multiple savings accounts for your various savings priorities.
Expert Tip: Prioritizing keeps you from stressing over not saving enough for all the things you want to do with your money. And if you’ve got a plan for saving toward multiple goals, it reduces the chance that something slips through the cracks.
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.
One last piece of advice? No matter your age, put your savings on autopilot, whether it’s for retirement, a road-trip, or a new home. 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 to help you microsave, you can ease some of the stress of reaching your goals. Plus, when you set it and forget it, spending your cash becomes much less tempting.
When mapping out your financial future, age may act as your savings compass. Let it point you in the right direction, but don’t panic if your path is different from everyone else’s. It’s never too soon or too late to start saving, and with defined goals and a plan, you can get your savings on track.
One savings account, multiple savings goals. Customize and organize all your financial priorities with our Online Savings Account.
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.