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8/5/2019

How Much Savings Should I Have at 30?

Turning 30 is a significant and celebratory milestone. As you step into life’s next decade, you may be asking yourself:

  • Am I where I’m supposed to be in my financial journey?
  • Am I saving enough?
  • Am I on track?

How much should you have saved by age 30?

The amount you should have saved depends on your goals, lifestyle and income. Each person’s financial situation is unique, so focus on yourself and not your peers. Do you want to take the reins of your financial well-being? If so, check out these saving guidelines and the steps to get you there.

1. Emergency savings

Amount to save: Three to six months of living expenses

Everyone, regardless of age, should have an emergency fund, but an estimated 61% of millennials have less than $500 saved for emergencies.1

When your car breaks down, your laptop dies or if you lose your job, you’ll need money to cover expenses. An emergency fund is an important cash reserve. Without it, you’ll have use credit cards, tap your family or friends or take out a loan. Getting yourself into debt makes an already difficult situation that much worse.

Many financial experts recommend having an emergency fund that can cover three to six months of expenses.2 Use our Emergency Savings Calculator to figure out how much you should have in emergency savings.

How to get there: Set up automatic deposits into a high-interest savings or money market account.

  • Open a savings or money market account that offers a high interest rate specifically for emergency savings. The CIT Bank Savings Builder account is a great choice for an emergency savings account. You’ll earn a competitive interest rate that is much higher than at your everyday bank when you commit to saving $100 or more every month. It’s an easy way to grow your funds faster.
  • Establish an automatic savings plan. Choose an amount that works for your budget, then set it up to automatically transfer to your savings account. In time you’ll have a substantial stash of cash you can tap into in case of an emergency.

2. Big ticket purchase such as a wedding or a home 

Amount to save: Varies

Ready to say, “I do?” Expanding your family and need a bigger place? If a wedding, house or other significant expense is in your future, saving now can help you avoid expensive headaches later.

How much you need to save will vary based on the cost of your aspiration. The national average cost of a wedding is $33,931.3 If you’re planning to buy a home, a typical down payment is 20 percent of the purchase price. It takes time to save—even with a competitive Annual Percentage Yield (APY) and daily compounding of interest.

Once you have an idea of the amount of money you will need, incorporate it into your overall savings plan.

How to get there: Open a high-interest savings account or CD

  • Open a dedicated savings account separate from your emergency savings and set up automatic deposits. 
  • Consider a CIT Bank Certificate of Deposit (CD) for a big expense. With a CD, you can lock in a competitive rate for a term that works for your time frame. We have a variety of CDs

3. Retirement

Amount to save: One year of your salary (at age 30)

We get it. When you’re 30, it seems like retirement is a million years away. But saving early and consistently is the best way to prepare for your golden years. Have you saved the recommended one-year of your annual salary for retirement?4 If not, now’s the time to start. To estimate how much you’ll need to retire, use our Retirement Planner Calculator.

How to get there: Participate in your company’s 401(k) plan

  • Participate in your company’s retirement plan. More than 80% of U.S. companies offer a defined contribution plan like 401(K) plans.5 It’s one of the smartest and easiest retirement-savings strategies. Your contributions will be pre-taxed and go directly from your paycheck to your account. Many employers will also match your contributions up to a certain percent. So even if you can’t contribute the annual maximum of $19,000, try to contribute enough to qualify for the employer match – it’s free money!6
  • To estimate how much you’ll need to retire, use our Retirement Planner Calculator.

Your 30s will be busy time filled with personal, career and family responsibilities. Take action to balance the day-to-day expenses with growing your savings. You’ll be better prepared to manage the money challenges that come your way and create a bright financial future.

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