How much should a single person have saved up by ages 22, 25, 30?

Question

Or, if you're past those stages, how much did you have at those ages? I go out and enjoy my share of fun, but I want to save up for marraige and a home purchase. I'm 27 and have about $15K in retirement and another $8K in savings.

Answer 1

Your question is open-ended, and it is my belief that it is far higher than you think, and certainly should be more than the average person has. Of course, you should subtract off your debts as well - these are really negative savings.

This general question was answered (somewhat) in the book "The Millionaire Next Door".

http://www.amazon.com/gp/product/0671015206/sr=8-1/qid=1154991168/ref=pd_bbs_1/002-6722197-7901613?ie=UTF8

In researching the book, the authors looked at the common threads among these millionaires, and found that most of them were good savers - which they termed PAW's or prodigious accumulators of wealth.

A rule of thumb that they used was that these PAW's were able to have savings of their age, times their income, divided by 10. This formula is hard to reach when you are younger, but you should try.

At 22, I was still in university, and had no savings. At 25, I had about $10,000. At 30, I had about $60,000. I am now 42, and have saved my way to be able to retire, but will not yet - I enjoy work too much.

Answer 2

This is a very relative question. It really depends on your situation. Just asking this question tells me that you want some type of balance between planning for now and planning for retirement. This means that you are probably 95% ahead of most Americans your age. I would say that the more important questions might be "Is the person I marry going to be thrifty like me or a spender?" or "What kind of lifestyle do I want?" These questions are going to affect your outcome more than some generic number.

Answer 3

Dave Ramsey has a very interesting chart on page 120 of his book, "Financial Peace Revisited".

In it, he gives the following example of Ben and Arthur:

Ben saves $2000 per year at 12% starting at age 19 and ENDING at age 26 after which he never touches the money or contributes another cent. At age 65, his $16,000 contribution have left him with $2,288,996.

Arthur saves $2000 per year at the same 12%, but he doesn't start until age 27 and NEVER stops. At age 65, after contributing $78,000, he has $1,532,166. HE NEVER CAUGHT UP!

Looks like your more on track with Ben! Great job!

So the rule is: Save early! Save often!

Answer 4

It in basic terms took Edison one time to make the sunshine bulb yet interior the approach he got here upon 2000 techniques the thank you to no longer make a delicate bulb. you're no longer a failure and there isn't any go with for embarrasment. in case you're no longer good with women folk, watch "The p.c.. up Artist" on VH1 or get the dvd whilst it comes out. i comprehend quite a few men who have been single nicely into their 30's only by way of fact they needed to get it real the 1st time. Being picky isn't a failure, it incredibly is the girls who're the mess ups by way of fact they "fail" to not sleep and make your standards. Mrs. real will come alongside, wait and notice. P.S. on a similar time as i grow to be married for a pair of years in my 1920s,(i do no longer brag approximately that mistake) i did no longer marry my genuine spouse now until eventually i grow to be 31.

Answer 5

22- nothing
25-$5000
30-$10,000

sounds good to me