How much should you save in your 20s, 30s, and 40s? Imagine you grew to the age of somewhere 50 and found $9876723,000,000 only in your emergency fund. How happy will your life be at that time? You may sleep and wake up whatever time you prefer because this time, you no longer have to work 9 -5 under a boss. Your investment and businesses are well enough to provide for your financial needs. All that you have to do now is to party every day. You may buy your dream house, car, and fancy cloth, throw a big party, and have fun with your friends and family.
But now, here you are without any of these. You still don’t have to lose hope but remember, the right time to make this amazing dream a reality is now. This is a great life expectation most young people within the age of 15 and 20 are dreaming of becoming. But often and not, how they manage their money is all that put them behind. If you want to be in a particular position, you must start the preparation now. To have $9876723,000,000 in your emergency fund by the age of 40 or 50 you do need to start saving now.
Do you think there is any magic secret for knowing, how much should you save in your 20s or 30s?
There is no magic secret of seeing $9876723,000,000 in your bank account every month. It’s just about consistent savings you must commit yourself of doing. Don’t wait and be saying in your 20’s that you will start saving when you get a raise. What if that time never comes? Your savings account will still be $0 and that is not how wealth is accumulated. To become a man of means and have a lot of money to depend on during your retirement, it starts with early consistent savings. There is no better time for saving, the right time for planting a money tree is now. Plant it today and reap the seed when you are within your 50s. (how much should you save in your 20s)
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So how much should I save in my 20s, 30s and 40s?
This is the exact question most young people ask. But I want to show you how much money you should save for your future with a simple scenario…
Imagine they sell cars, and bicycles in the next city. Every single car costs $100 and a bicycle cost $10 I have a dream of buying a bicycle in the next 10 days. One morning I was walking on the street and you approached me and said, hey man, do you have any plan for saving money? Then I responded yes. Then you continue, I want to buy something in the next 10 days, so how much should I save? Oh save $1 every day, I replied.
You took my advice and discipline yourself by saving $1 every single day and spend the rest of your money on unnecessary things. On the fourth day, your entire savings was $10. Now, tell me, can you buy the $100 car you are hoping to? No, the salespeople will even slap you before you open your mouth and say, am buying this car for $10. You should have saved $10 every day which will sum up to the price of the car $100 on the 10th day.
Who made mistake here, me or you? Is probably you because you should have told me what you wanted to buy in the next 10 days rather than saying “ I want to buy something in the next 10 days” How will I know the price of what you want to buy and tell you how much you should save to be able to afford it?
This little scenario is just about what I want to show you on, how much should you save in your 20s. You yourself know the financial position you want to find yourself in the future. Or the kind of house, car, and the business you want to establish. You just have to analyze things by yourself base on what you are up to. If you are hoping to buy a car in your 30’s whiles you are now 26 years old. Saving $10 every month to meet the price of such a car won’t work my friend. What then should you do is to save a huge amount of money every month.
So, is simple, no one can predict rightly for you how much should you save in your 20’s, 30, or 40s without telling them what you are up to. Is like you are trying to find your way to the next city called “financial freedom” On your way, you met a man and you asked, please am going. Then the man said, if you are going, then go. You will surly get lost, you should have rather asked him “please am going to the next city called financial freedom and I don’t know the way” Then he will direct you rightly to that city.
So the question of how much should you save in your 20s or 30s depends on you. Know what you want to achieve in the next 10 years and sit down quietly and calculate how much can you save every month to achieve such goal. Be it car, house, or anything you dream of obtaining in the future, calculate the cost and start saving towards it now.
But remember, either you know how much to save or not, your goal is to save. But what do you have to save for?
The secrets of knowing what you must save for to be successful in the future is right below…
What should you save for, and how much should you save?
Either you are willing to become financially free in the next 20 or 30 years, there is something really important you must start saving for now…
1. Build an emergency-fund
So what is an emergency fund at all? An emergency fund is a money set aside to cater for unforeseen expenses. For example, if you lose your job, fall sick, fire outbreaks in your house, and many more. Is a financial priority every man should make in his or her life. Because you can’t predict rightly what will happen tomorrow, you do need to set aside some money in case something bad you are not expecting happens. At least you should have 3 – 6-month surviving income. This way in case you are to lose your job, you can depend on it for at least 2 months before you get a new one.
You don’t need to have $1000 or $1999,000 in it, just calculate how much money you can depend on for survival within 2 – 6 months. You don’t need to pull off a whole 6-month income into it but rather you can begin by paying at least 5% of your monthly earnings into such account. It is better to have a separate account for an emergency-fund as Warren Buffet said “Don’t put all your eggs in one basket” Create a different account and set up automatic deduction so that 5% of all your monthly earnings will be credited to it.
Here come the life changing secret on how much should you save in your 20s, 30s and 40s.
I have been waiting to show you…
3. Save for your future
I know what you are thinking, saving to marry that pretty girl or handsome guy right? Ha-ha, I got you. That is also part of it, go ahead and get financially prepared for marriage, my friend. Saving smartly at different ages is mainly towards something but most often all that we say is “am saving for my future” that is why most people are so eager with their retirement savings. Everyone dream of having a brighter future and that brighter future start with nothing else than early preparation. That time is now.
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Moreover, either you have a salary amount of $100 or $4300,000 save at least 10% of it every month for your future. Just save but don’t save for saving sake, invest as your earnings grow, and very soon in the future, you will meet your personal financial goals. You don’t have to be in your 70s or 80s and still be in debt, not having double-income and no insurance policy. Any little money you save to invest now is a slave to work for you to enjoy the fruit of it when you retire. So commit to saving and soon you will find yourself successful because remember, success is nothing more than daily small consistency work. Having any further suggestions on what I just show you (how much should you save in your 20s, 30s, and 40s) feel free to comment below.