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

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.However, because everyone’s financial situations are unique and are influenced by their spending habits, income, debt and overall lifestyle, not every 30-year-old will have the same amount of money tucked away — and that’s okay!

Rather than tell you a precise amount that you should have saved by the time you are 30, we will provide you with savings tips to help you reach your specific financial goals, whatever they may be.

3 Financial Goals for People Under 30

By now, you know that the most effective way to save money is to set a monthly budget for yourself and stick to it. Some tips for setting a realistic and effective budgetinclude:

  • Recording your daily spending
  • Tracking your spending habits for at least a month
  • Still budgeting for fun and entertainment
  • Making automatic savings contributions
  • Clearly defining spending priorities

But what elsecan youdo to ensure you havea healthy chunk of change stashed awayby the time youhit the big 3-0?

1. Have no consumer debt. By the time you are 30 years old, you should have auto loans, credit cards and other consumer debt paid off. Remember, it’s better to have $500 in the bank with no debt than to have $5,000 in the bank with significant debt.

2. Make at least one (smart) investment.According to Investopedia, “A mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money marketinstruments and similar assets.”Mutual funds are the largest and most popular investment vehicle for the retail buyer, making them a great investment option for young people with limited investing experience.

3. Have at least three months of living expenses saved.Everyone should have an emergency fund to better prepare for unexpected events, such as an expensive auto breakdown or unemployment. When saving money for your emergency fund, make sure you are putting money in a savings account (separate from your checking account).

First Bank* Helps You Save

No matter your age, First Bank canhelp you save money to reach your financial goals. Some savings options that we offer include:

Want to learn more? Contact us or visit your local First Bank branch today!

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Source:
Investopedia:http://www.investopedia.com/terms/m/mutualfund.asp

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

FAQs

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

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 a 30 year old have saved in the bank? ›

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.

Is having $4000 in savings good? ›

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.

Where should I be financially at 30? ›

By age 30, people should aim to eliminate as much debt as possible, whether it be from credit cards, student loans, or car loans. Focus on paying off the high-interest debt first, then work your way through. Negotiate your bills. Look at your current bills and see which ones you could negotiate.

Is $20,000 a good amount of savings? ›

Having $20,000 in a savings account is a good starting point if you want to create a sizable emergency fund. When the occasional rainy day comes along, you'll be financially prepared for it. Of course, $20,000 may only go so far if you find yourself in an extreme situation.

Is 50k savings at 30 good? ›

Lots of people don't save money in their 20s, not because their spending habits are out of control, but because their entry-level salaries are relatively low. Plus, many are already struggling to repay student loans. By age 30, you should have saved about $52,000, assuming you're earning a relatively average salary.

Is $40,000 in savings good? ›

While $40,000 is a good start on the road to building a nest egg, you probably want to retire with a lot more money than that. But it may be more than possible if you commit to saving and investing in a brokerage account consistently for the remainder of your career.

Is having 100k in savings rich? ›

Having over $100k in savings is generally considered a good financial position in the United States.

Is having 10k in savings a lot? ›

Reaching a five-figure savings account is a significant financial milestone. If you have $10,000 in the bank, you've got something to brag about. According to the TransAmerica Center for Retirement Studies, you've managed to double the non-retirement savings of the median adult in America.

Is 10k a lot in savings? ›

There's nothing wrong with keeping $10,000 in a savings account. But it might not earn you the highest yields. CDs and brokerage accounts could be better homes for your cash in some situations.

How rich is the average 30 year old? ›

Average net worth by age
Age by decadeAverage net worthMedian net worth
20s$99,272$6,980
30s$277,788$34,691
40s$713,796$126,881
50s$1,310,775$292,085
4 more rows

What age do people peak financially? ›

Peak earning years are generally thought to be late 40s to late 50s*. The latest figures show women's peak between ages 35 and 54, men between 45 and 64. After that, most people's incomes typically level off. Promotions favor younger people with longer futures*.

What is a good net worth at 30? ›

The net worth you should be aiming for in your 30s is between $25,000 and $100,000, according to Crissi Cole, founder and CEO of Penny Finance.

How much is too much cash in savings? ›

How much is too much savings? Keeping too much of your money in savings could mean missing out on the chance to earn higher returns elsewhere. It's also important to keep FDIC limits in mind. Anything over $250,000 in savings may not be protected in the rare event that your bank fails.

Is 20k a lot for a 25 year old? ›

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.

Is saving $1000 a month good? ›

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.

What's the average net worth of a 30 year old? ›

Average net worth by age
Age by decadeAverage net worthMedian net worth
20s$99,272$6,980
30s$277,788$34,691
40s$713,796$126,881
50s$1,310,775$292,085
4 more rows

Is $40,000 a lot of money? ›

Well, it depends. A $40,000 salary may be sufficient for an individual in a low-cost area, but it may not be enough for a family to live comfortably in most parts of the US. Rising inflation has made it more challenging to live on a $40,000 salary, but it still exceeds the poverty threshold for families.

What should your net worth be by 30? ›

The net worth you should be aiming for in your 30s is between $25,000 and $100,000, according to Crissi Cole, founder and CEO of Penny Finance.

What is a good salary at 30? ›

What is the median salary by age in the United States?
AgeMedian Salary
30$50,000.00
31$54,000.00
32$52,000.00
33$55,000.00
51 more rows

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