how much should I have in savings at age 42?

Answer 1

By 42, you should have your primary home about 2/3 paid off, and at least $500,000 invested. You should have essentially no credit card debt.

Answer 2

Here is a little rule of thumb that you can use. It was developed from research conducted by Stanley and Danko for their book "The Millionaire Next Door":

http://www.amazon.com/Millionaire-Next-Door-Surprising-Americas/dp/1567315682/ref=pd_bbs_sr_1/105-5781348-4754840?ie=UTF8&s=books&qid=1185207374&sr=8-1

I highly recommend this book, by the way.

In their studies, they separated people out by their net worth (not their income as this all can be spent rather than saved). The top class, named "Prodigious Accumulators of Wealth". These people tended to have a net value of their age, times their income, divided by ten. If your net worth is over this amount, then you are in good company indeed.

Answer 3

It's hard to give a firm # because it varies based on your income and life circumstances, but here's a good rule of thumb - try to get to the point where you have twice your annual salary invested.

At that point, compound interest will start to take off, and your investments (if you can have the discipline to leave them alone) will do a lot of your work for you.

Answer 4

No matter what age, always keep enough money in "liquid" savings -- money you can access at any time without red-tape -- to pay your monthly bills for 3 months. Factor in rent/mortgage, car, insurance, utilities for 3 months. You may have to save up for a while to get to this amount. But once you do, don't touch it unless you lose your job.

Answer 5

Save and invest in Equties as much as you can. Start from NOW.

Answer 6

$1.000.000