How Much Money Should I Have Saved by 30?

It’s never too early to start saving for emergencies or retirement, but the question is, how much? There isn't a specific number someone should have saved by 30, but there are general guidelines.

Even if you’re a 30-year-old who hasn’t started saving yet, there’s still time, and no amount is too small.

How much money should I have in my savings accounts at 30?

Data from the 2022 Federal Reserve Survey of Consumer Finances, shows the average amount someone under 35 has in their transaction accounts, which includes checking & savings accounts, is $20,540.^[7] Keep in mind the median value for that age group is $5,400 so the amount in transaction accounts can vary widely and is impacted by things like your income and how much debt you have.

You should also consider retirement savings as well as how much you have in a regular savings account when you’re 30.

The amount you should have saved by age 30 will vary from person to person as it depends on your financial situation and your savings goals. Some experts suggest having 1x your annual salary saved for retirement by the time you are 30. So if you have a salary of $50,000 when you are 30, then a good retirement savings goal would be $50,000.^[1]

How much should I have saved in an emergency fund by 30?

It’s important to have a separate emergency fund for unexpected expenses, such as car accidents, home repairs and medical bills. A good rule of thumb is to have a minimum of three to six months’ worth of expenses saved in an emergency savings account.^[2]

To calculate how much you need in an emergency fund, add up all your bills (utilities, rent, car payment, insurance, etc.) and regular expenses such as food and gas. Then, multiply by three to get the minimum amount to save for your emergency fund.

For example, if your monthly expenses are $1,500, you should have a minimum of $4,500 saved for three months’ worth of expenses and $9,000 saved for six months’ worth. This is a good guideline to follow regardless of your age.

How much should I have saved for retirement by 30?

Everyone’s retirement plan is different. The amount of money you should save by 30 will depend on several factors, including when you started saving, how much money you make, your cost of living, and your target retirement age. The earlier you start, the more you’ll be able to save, so it’s definitely a good idea to start saving for retirement at 30. Here are some general retirement targets by age.

Fidelity suggests 1x your income by age 30

Fidelity Investments recommends saving 1x your salary by 30.^[3]

As of 2024, the average annual salary is $56,160 for 25 to 34-year-olds and $67,756 for 35 to 44-year-olds.^[4] So the average 30-year-old should have $50,000 to $60,000 saved by Fidelity’s standards.

It’s fair to assume that your salary will increase over time as you age. But based on a $50,000 salary at each age, here are examples of financial milestones by decade.

Source ^[3]

These goals aren’t set in stone. Other financial planners suggest slightly different targets.

Save 15% of your pre-tax income annually

If you start saving early (around age 25), experts advise putting 15% of your pretax earnings towards your retirement savings.^[5] If you make $50,000 per year, that means you should save $7,500 towards retirement.

If a 15% savings rate isn’t possible, that’s okay. Start small and as your income grows or your debt is paid off, begin to contribute more to your retirement accounts.

A long-term target is to save 10 times your pre-retirement annual income by age 67.^[3] If your year’s salary is $50,000, that means you should have $500,000 saved for your retirement fund. But is $500,000 enough to sustain you? Let’s look at some scenarios that assume you’ll need living expenses for 26 years.

• If you saved $150,000, you could safely spend $5,700 a year.
• If you saved $300,000, you could safely spend $11,500 a year.
• If you saved $500,000, you could safely spend $19,200 a year.
• If you saved $1,000,000, you could safely spend $38,400 a year.

If you’ll only need about $19,200 a year, then $500,000 might be enough. This is a simplified example that doesn’t take into account inflation or compound interest. It’s helpful to test different scenarios using an online calculator to determine the right number for you.

In addition to what’s saved in your retirement accounts, remember to consider other sources of retirement income like Social Security. The national average for Social Security benefits was $1,907 a month as of January 2024.^[6]

Average savings by age

While there are some recommendations on how much you should have saved by 30, 40, 50, and so on, that’s not necessarily the reality for many people in the U.S.

Let’s take a look at the average savings and retirement account balances of people in different age groups.

Sources ^{[7] [10]}

The exact average savings by age will vary greatly as everyone’s financial situation is different. Those with higher incomes and fewer expenses may find it easier to save more money over long periods than those with lower incomes or who are paying off significant debt.^[10]

The average savings in transaction accounts mentioned here refer to accounts that typically allow the owner to make deposits or withdrawals easily. These accounts could include:

• Checking accounts
• Savings accounts
• Money market accounts
• Call accounts
• Prepaid debit cards

Average savings at age 30

Although the Federal Reserve does not offer specific data on savings for people aged 30 or in their 30s, they do provide insights for people aged under 35.

For people in this age range, the average amount of money saved in transaction accounts is $20,540, while the average savings in retirement accounts is $49,130.

What types of savings accounts should I have?

There are several different types of bank accounts available for saving.

• Roth or traditional Individual Retirement Accounts (IRAs) are retirement-specific accounts. Roth IRAs and Roth 401(k)s tax you first and allow your investments to grow tax-free, so you don’t pay any taxes when you access your funds at retirement.
• 401(k) matching can increase your income. Many large employers offer company matches of 50 cents for each dollar you contribute up to 6% of your pay.^[9] Check with your employer to see if they offer retirement match benefits and how you can take advantage of them.
• High-yield savings accounts offer higher interest rates and are useful for emergency funds or sinking funds.
• Money market accounts offer you interest rates similar to savings accounts but may share similarities to checking accounts, such as the ability to write checks or use a debit card.

It’s useful to capitalize on employer matching opportunities and tax-advantaged accounts, which can lower your taxable income and help you avoid paying taxes on interest. More on that below.

How to save more money

Even if you haven’t saved anything by the time you’re 30, you still have plenty of time. Start with an emergency fund and then consider retirement and other savings goals.

If you have the money to start a retirement fund, make sure to research how to best allocate funds at 30. T. Rowe Price suggests 0% to 10% bonds and 90% to 100% stocks because younger people have a higher risk tolerance and stocks may provide larger returns over time.^[8] Here are a few additional tips to optimize your savings.

Create a budget

Creating a budget is an essential first step. A detailed budget with specific categories — such as utilities, transportation, rent, food, health care and savings — can give you a clearer picture of how much you’re spending and where you can cut back.

If you’re not sure how to allocate your income, try the 50/30/20 method where 50% of your income goes toward needs, 30% toward wants, and 20% toward savings.

Use debt repayment strategies

The more debt you have, the more interest you pay. There are multiple strategies you can use to help pay down your debt, whether it’s student loan debt, a mortgage, or credit card debt. The debt snowball method suggests that you make minimum payments on all debts, but put more money towards the smallest debt first.

Once you’ve paid that one off, move on to the next smallest debt. This helps you see tangible progress as you check debts off your list. Paying off as many debts as you can in your 20s and 30s will give you more time and extra money to save as you won’t be paying interest on your debts over a long period of time.

Utilize tax-advantaged accounts

A tax-advantaged account is any account that has tax benefits. This includes tax-exempt and tax-deferred accounts. By contributing to these types of accounts you reduce your taxable income and don’t pay taxes on the interest that accrues. Examples of tax-advantaged accounts include Roth IRAs, 401(k)s, flexible savings accounts (FSAs), and health savings accounts (HSAs).^[9] If you have an employer-sponsored 401(k) make sure to check how much your employer matches.

Generate multiple streams of income

If you’d like to put more money towards savings, try a side hustle or gig work. Even if you can only dedicate a few hours a week to food delivery or ridesharing, that income adds up.

It’s not too late to start

Saving money can help prepare you for the worst (unforeseen emergencies) and the best (a great retirement). Even if the savings goals outlined by Fidelity and T. Rowe feel out of reach, just remember that any form of saving is a good first step toward reaching your financial goals by 30 and beyond. Whether you’re under 30 or much older than 30, it’s never too late to start saving up for your future.

Tackle a money saving challenge or explore apps that can help you save. There are plenty of tools at your disposal that can help you build toward a bright financial future.

Sources

1. The Motley Fool. “How Much Money Should I Have Saved by 30?” https://www.fool.com/retirement/how-much-saved-by-30/
2. Wells Fargo. “Saving for an Emergency” https://www.wellsfargo.com/financial-education/basic-finances/manage-money/cashflow-savings/emergencies/.
3. Fidelity. “How much do I need to retire?” https://www.fidelity.com/viewpoints/retirement/how-much-do-i-need-to-retire.
4. MarketWatch. “Average Salary by Age” https://www.marketwatch.com/guides/business/average-salary-by-age/
5. Forbes. “How Much Should You Save For Retirement?” https://www.forbes.com/advisor/retirement/how-much-to-save-for-retirement/.
6. SSA. “ What is the average monthly benefit for a retired worker? https://faq.ssa.gov/en-us/Topic/article/KA-01903
7. Federal Reserve. “Survey of Consumer Finances” https://www.federalreserve.gov/econres/scf/dataviz/scf/table/
8. T. Rowe Price. “Retirement Savings by Age: What to Do With Your Portfolio in 2022,” https://www.troweprice.com/personal-investing/resources/insights/retirement-savings-by-age-what-to-do-with-your-portfolio.html.
9. Investopedia. “Tax-Advantaged,” https://www.investopedia.com/terms/t/tax-advantaged.asp.
10. Forbes. “Average Savings by Age” https://www.forbes.com/advisor/banking/savings/average-savings-by-age/

About the author

Ana Gonzalez-Ribeiro, MBA, AFC® is an Accredited Financial Counselor® and a Bilingual Personal Finance Writer and Educator dedicated to helping populations that need financial literacy and counseling. Her informative articles have been published in various news outlets and websites including Huffington Post, Fidelity, Fox Business News, MSN and Yahoo Finance. She also founded the personal financial and motivational site www.AcetheJourney.com and translated into Spanish the book, Financial Advice for Blue Collar America by Kathryn B. Hauer, CFP. Ana teaches Spanish or English personal finance courses on behalf of the W!SE (Working In Support of Education) program has taught workshops for nonprofits in NYC.

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