How Much Money Should I Have Saved By 30? (2024)

For many, hitting the big 3-0 is a meaningful milestone, and it may lead you to ask more questions about your future. And though 30 may seem young, you’re never too young to think about your nest egg and retirement. Here’s how much you should have saved by 30, and tips for getting there.

Average Savings by Age 30

The Federal Reserve provides data for average savings by age in its Survey of Consumer Finances studies. These reports don’t provide specific data for individuals in their 30s, but they do give insights for people under 35. According to the latest Survey of Consumer Finances, the average savings in transaction accounts for this group was $11,250, and the median was $3,240, in 2019. If you have more than this in your savings account at 30, you have more than many of your peers.

Although knowing the average savings in transaction accounts is helpful, these figures don’t exactly represent how much money people have. In terms of assets overall, the average person under 35 had $40,700 in 2019 across financial accounts, retirement, property and more. To get an accurate picture of savings, you should consider more than just bank accounts that hold extra cash.

How Much Savings Should I Have at 30?

So, how much should you have saved by 30? This will vary from person to person. 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. This comes from the goal of being able to replace about 70% to 80% of your pre-retirement income in retirement.”

While having the equivalent of your annual salary saved up by 30 may seem unattainable, Kovar believes it’s achievable if you start saving in your 20s.

However, he emphasizes that each person’s financial circ*mstances and retirement goals are unique, and this savings benchmark will not fit everyone’s situation. This simply serves as a quick way to check your savings progress, and not meeting this minimum certainly doesn’t mean you’re behind.

For a better idea of how much you should have saved for retirement by 30, use our Retirement Savings Calculator to workshop a personalized savings plan using your age, income and goals.

How To Reach Your Savings Goals by 30

If you’re nowhere near your savings goals by 30, don’t fret. Though you may have to start contributing more money to your nest egg each month, you can catch up. Here are some tips to save more.

Pay Off High-Interest Debt

High-interest debt, like credit card debt, can eat away at your disposable income, leaving little left to save. If you’re behind on your savings goals, make a plan to pay off any debt that’s holding you back.

Consider making larger payments, securing lower interest rates or consolidating debt to make it more manageable. And if you don’t know where to start, try the debt snowball or debt avalanche repayment strategy. The debt snowball method tackles the smallest balances first, while the debt avalanche method starts with debts that carry the highest interest rates.

Let Compound Interest Work for You

Compound interest can play a powerful role in your savings. Simply put, compound interest is interest earned on interest. As interest-bearing accounts such as savings accounts and money market accounts earn interest, that interest collects and begins earning interest alongside the rest of your balance. This allows your money to grow more quickly, as long as you avoid taking cash out.

Here’s an example: If you save $1,200 a month from the age of 25 in a retirement account earning 7% interest, compounded monthly, your balance will grow to over $3.1 million by the time you’re 65—even though you contributed less than $600,000 yourself.

Find out how much interest you could earn on a savings account with our Savings Interest Calculator.

Take Advantage of 401(k) Matching

You’re passing up free money if you have access to an employer 401(k) match program and you’re not using it. Employers may match anywhere from 50% to 100% of contributions on up to 6% of your annual salary each year, and the matched money doesn’t count as income.

If you make $50,000 a year and your employer matches 100% of your contributions up to 3%, you could add an extra $1,500 annually to your retirement savings. If you can, contribute enough to max out the match so you don’t leave money on the table. Start adding what you can and increase your contributions as your budget allows.

Automate Your Savings

Automating your savings allows you to save regularly without having to think about it or remember. You can direct deposit a portion of your paycheck to your savings accounts, schedule automatic transfers from your checking account or use a money-saving app to find and save extra cash.

Where To Keep Your Savings

It’s best to keep your savings in a place that offers security, competitive rates and charges few fees. Consider parking your savings for a short while or the long haul in one or several of the following:

• High-yield savings accounts
• Employer-sponsored retirement plans
• Individual retirement accounts (IRAs)
• Money market accounts
• Certificates of deposit (CDs)
• Fixed annuities
• U.S. Treasury securities

Use our Savings Goal Calculator to see how much you should be saving each month in order to meet different life goals and expenses.

Bottom Line

Your lifestyle, retirement plans and other financial goals can all impact the amount you should have saved by 30. But the following is true for everybody: Every penny counts, and the sooner you start saving, the better.