Are You Saving Enough Money?

If you want to achieve financial independence you need to learn how to save money!

According to Northwestern Mutual’s 2018 Planning & Progress Study, 21% of Americans have no money saved for the future, and 10% of Americans have less than $5,000 in savings.

Experts recommend saving about 10-15% of your income. This may sound impossible if you’re not managing your money properly, but everyone can do it, at any age.

Recommended Savings Goal by Age

Fidelity has recommended retirement savings benchmarks by age to help you determine if you’re on track. Fidelity’s rule of thumb is to save 1x your annual salary by age 30, 2x by age 35, 3x by age 40 and so on. The savings goal increases as you get older. See the chart below to see an example of what your savings goal should be based on your age and income.

Are you on track?

How much money are you saving? Will you have enough savings for a down payment on the house you want? Will you be able to invest money to build wealth? Are you saving 10-15% of your income?

“The average American manages to put away 3.5% of their income.” – US Bureau of Economic Analysis.

If you find that you’re off track, the key is to take action now so you can begin accumulating wealth early. If you need help with your finances, set up a coaching session to discuss how we can structure a plan that will work for you and your family.