When it comes to saving money, we all know we should be doing it – but it can be tough to sort out the details. If you’re a little confused by the numbers, you aren’t alone. A 2016 study showed that a full third of Americans had $0 saved. That’s a huge problem.
Of the remaining people polled who did manage to save some money, half of them had fewer than $1,000 put aside. Obviously, $1,000 is not enough – but what is “enough”?
There are few different viewpoints on what constitutes enough, but everyone agrees on one thing: You need an emergency savings account. Read on to see what else you should have saved and by what age.
Late-teens – early-twenties
$500-$1,000. This money is for emergencies only – think car repairs and surprise medical bills, not weekend trips and really nice boots.
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This makes it easy for you to transfer money over when you’re still in the stashing stage and easy to access when you’ve got a financial emergency on your hands. If you really want to be ahead of the game, put this money into a liquid investment vehicle or a money market account.
Twenties
½ your salary. For the average American working full time, this means you’ll need to have about $15,000 saved. That sounds like a lot, but look at it this way: If you give yourself 10 years to save, you are putting aside just about $30 per week. By adopting habits like budgeting, living below your means, and always taking that 401k match, you’ll get yourself there in no time.
This money should be kept in a mix of pre- and post-tax retirement accounts, like your company sponsored 401k and your own personal
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