Ever wondered what you should be working toward in your 20s and early 30s (other than finding a job, navigating adulthood, and generally figuring out your life 😬)?
To help, I chatted with Brian Walsh, a certified financial planner at SoFi, a personal finance company.
Just keep in mind, these recommendations are pretty broad and general, so they might not be exactly right for your personal situation. Even if the suggested numbers seem a little (or a lot) off for you, looking at these kinds of idealized financial suggestions can still be helpful because they can show you aspects of your finances that might need attention. So take what's useful for you, and leave the rest.
3. And try to put enough money in savings that you could float yourself for three to six months.
4. Make sure you're well insured — and that includes disability insurance.
5. Once you have the basics covered (see #2–#4), try to put 15%–20% of your income toward retirement.
6. When your retirement is in a good place, it may be time to start saving for your short- and long-term goals. (But first, what's "a good place"?)
7. Before you start thinking about buying a home and building equity, it's recommended that you make sure your financial basics are fully covered (see #2–#4).
9. Just remember that your rent or mortgage shouldn't be so high that you can't afford to put money toward your financial goals.
10. You might want to consider investing any money you have left over.
11. And, if you have a kid, consider putting together a will.
12. Since all this can be confusing (and vary based on your personal situation), your best bet is to connect with a financial planner or advisor.
How's your financial journey going? Share your successes and the things you're still working on in the comments.
And for more stories about life and money, check out the rest of our personal finance posts.
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How much money should you have in your savings account at the age of 35? It largely depends on when you started saving, your income and lifestyle, and whether you carry consumer debt.
Savings for Adults in Their Mid-Thirties
You might have heard friends, parents or financial advisors at local banks advise you to follow the 50/30/20 rule. If you follow this rule, you’ll break up your income in the following manner:
- No more than 50% of your income should go to required expenses, such as shelter or food.
- No more than 30% can go towards the wants in life, such as your gym membership or cable.
- The final 20% of your income should to towards savings, retirement and paying off debt.
Some experts explain it another way and recommend that your savings should equal your salary by age 35.
Still another way to approach savings is by using this guide from CNN Money. According to this, 35 year-olds should have saved the following, depending on their income:
| Income | Estimated Amount in Savings |
| $40,000 | $60,000 |
| $65,000 | $97,500 |
| $90,000 | $135,000 |
| $115,000 | $172,500 |
However, this isn’t necessarily the case for many Americans, especially those with consumer debt or who didn’t get a job until later in their 20s. The savings goal at any age is simply to save so that you have an emergency fund, can pay off debt, and are able to invest.
Now is the Time to Start Saving for Retirement
Once you begin saving, it’s important to begin investing your wealth to let your money grow. This can be done through stocks and bonds, job promotions and salary increases, or even buying the apartment you’ve been renting. Your investment options should begin small and increase the more you save. Additionally, you should be making regular contributions to your IRA or 401k, whichever your company provides and matches.
There’s no single answer to how much savings you should have by age 35. Ultimately, it comes down to your own unique budget and contributions.
To learn more about savings at any age, contact your local First Bank* today. Our financial advisors can speak with you about your savings and help you plan for retirement.
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Sources:
CNN Money: //money.cnn.com/gallery/retirement/2015/09/01/how-much-do-i-need-for-retirement/2.html
CNBC: //www.cnbc.com/2014/02/10/qa-were-in-our-30s-how-much-should-we-be-saving.html
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