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Strive to save **20% of your gross income** each month, some experts say. But they caution that every financial situation is different and that any amount saved is helpful, even if it's less.

Why **20 percent** is a good goal for many people. There are a number of rules of thumb that relate to savings, whether it's retirement or emergency savings, but a general consensus is to set aside between 10 percent and 20 percent of your income each month for savings.

If You Invest $1,500 per Month

**Putting away $1,500 a month is a good savings goal**. At this rate, you'll reach millionaire status in less than 20 years. That's roughly 34 years sooner than those who save just $50 per month.

**If you start saving $1000 a month at age 20 will grow to $1.6 million when you retire in 47 years**. For people starting saving at that age, the monthly payments add up to $560,000: the early start combined with the estimated 4% over the years means that their investments skyrocketed nearly $1.

If you retire at 55, and the average life expectancy is around 87, then **250K will need to last you 30+ years**. If it's your only source of retirement income, until the state pension kicks in at around 67/68, then you are going to have to budget hard to make it last.

**Yes, saving $300 per month is good**. Given an average 7% return per year, saving three hundred dollars per month for 35 years will end up being $500,000. However, with other strategies, you might reach 1 Million USD in 24 years by saving only $300 per month.

**Yes, saving $2000 per month is good**. Given an average 7% return per year, saving a thousand dollars per month for 20 years will end up being $1,000,000. However, with other strategies, you might reach over 3 Million USD in 20 years, by only saving $2000 per month.

**A sum of $20,000 sitting in your savings account could provide months of financial security should you need it**. After all, experts recommend building an emergency fund equal to 3-6 months worth of expenses. However, saving $20K may seem like a lofty goal, even with a timetable of five years.

By the time you are 35, you should have **at least 4X your annual expenses saved up**. Alternatively, you should have at least 4X your annual expenses as your net worth. In other words, if you spend $60,000 a year to live at age 35, you should have at least $240,000 in savings or have at least a $240,000 net worth.

Saving **15% of income per year (including any employer contributions)** is an appropriate savings level for many people. Having one to one-and-a-half times your income saved for retirement by age 35 is an attainable target for someone who starts saving at age 25.

How much money has the average 30-year-old saved? If you actually have **$47,000** saved at age 30, congratulations! You're way ahead of your peers. According to the Federal Reserve's 2019 Survey of Consumer Finances, the median retirement account balance for people younger than 35 is $13,000.

According to this survey by the Transamerica Center for Retirement Studies, the median retirement savings by age in the U.S. is: Americans in their 20s: $16,000. Americans in their 30s: $45,000. Americans in their 40s: **$63,000**.

Most financial planners recommend saving **three to six months' worth of salary** in an emergency fund, as well as putting 15% of your monthly pay into a retirement fund. Building up to both of these is a good target for your 20s.

**Yes, saving $10K per year is good**. It will make you a millionaire in 30 years and generate a passive income of $100K per year after 38 years (given a 7% annual return). I'm assuming that you're investing your savings into a passive index fund (or something roughly equating it) with an annual average return of 7%.

If you actually have $20,000 saved at age 25, you're way ahead of the national average. The Federal Reserve's 2019 Survey of Consumer Finances found that the **median savings account balance was $5,300** across households of all ages, not just 20-somethings.

The traditional rule of thumb from financial advisors is that by the time you reach age 40, you should have **three times your salary in retirement savings**. So, if you earn $60,000 per year, this means that you should have a total of $180,000 in your 401(k), IRAs, and other retirement-specific accounts.

To stay on track to retire at 67, you should have saved **3 times your income** by age 40, according to retirement-plan provider Fidelity Investments.

Another red flag that you have too much cash in your savings account is if you exceed the **$250,000 limit** set by the Federal Deposit Insurance Corporation (FDIC) — obviously not a concern for the average saver.

If you earn at least $45,000 a year, you could potentially save your first $100k in just **5 years**. Here's how. The first $100,000 is the hardest to save. That's a common mantra on wealth-building blogs and investor forums.

The rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must-have or must-do. The remaining half should be split up between 20% savings and debt repayment and 30% to everything else that you might want.

For instance, assume that you're 25 years of age drawing a yearly salary of around Rs. 3,00,000. By the time you reach 30, you should have ideally saved up around **50% to 100% of your current salary**, which comes up to around Rs. 1,50,000 to Rs.

"It's **$2,600 a year**, but when you start adding in interest, it grows very quickly." For example, the Consumer Federation of America calculated that if you saved $50 per week every week for 40 years, you'd have $332,020 even if you invested it at a conservative rate of only 5 percent per year.

If we want to become a millionaire in 10 years, we would need to save about **$6,000 per month**.

Save $100 a week from age 25 to 65 and you will have about **$1.1 million**, assuming a 7% annualized return. Of that $1.1 million, $208,000 will be money you saved. The other $900K or so will have been delivered by compounding.