Savings · 7 min read
How much should I have in savings at 25, 30, 35 and 40?
The common benchmarks are roughly half your salary saved by 25, one times by 30, two times by 35, and three times by 40, with three to six months of expenses of that held in accessible cash. Those are averages dressed up as rules, so here is what they mean, what counts, and what to do if you are behind.
Savings benchmarks by age
| Age | Cash cushion | Total saved | Typical cash figure |
|---|---|---|---|
| 25 | 1–3 months of expenses | ~0.5× salary | $3,000–$8,000 cash |
| 30 | 3–6 months of expenses | ~1× salary | $9,000–$18,000 cash |
| 35 | 6 months of expenses | ~2× salary | $18,000–$24,000 cash |
| 40 | 6 months of expenses | ~3× salary | $20,000–$30,000 cash |
"Total saved" includes retirement accounts. "Cash cushion" does not : it is money you could reach this week without a penalty.
Months of expenses beats a dollar figure
A $15,000 cushion is generous for someone spending $1,800 a month and thin for someone spending $5,000. The benchmark that travels is months of essential expenses, which is why the first step is knowing that number. The monthly survival number calculator works out the bare minimum you need to cover each month, and the emergency fund calculator turns it into a target.
What counts toward the target
- Counts as cash: checking overflow, a high-yield savings account, money market funds.
- Counts toward total savings but not cash: 401(k), IRA, brokerage accounts, employer match.
- Does not count: home equity, a credit card limit, or a car's resale value. None of them help in the week a paycheck stops.
If you're behind the benchmark
Most people are, and the benchmarks assume an uninterrupted career that few actually have. Three moves in order of impact:
- Get one month of expenses in cash first. It stops the cycle of small emergencies becoming credit card balances.
- Clear high-interest debt next, a 22% APR balance costs more than any savings account pays. The debt payoff calculator gives you a date.
- Then build to three, then six months. Automating a fixed transfer on payday outperforms saving whatever is left over.
Also worth reading: how big should your emergency fund be? and how much emergency savings do I need?
FAQ
How much should I have in savings at 25?
A reasonable target at 25 is one month of expenses in cash plus roughly half a year's salary across all savings and retirement accounts combined. For many people that is $3,000 to $8,000 in accessible cash.
How much should I have in savings at 30?
Aim for three to six months of expenses in an accessible emergency fund, and about one times your annual salary across all savings and retirement accounts.
How much should I have in savings at 35?
Six months of expenses in cash is the common benchmark, with roughly two times annual salary in total savings including retirement.
How much cash should I have in savings for emergencies?
Three months of essential expenses is the floor, six months is the standard target, and twelve months suits self-employed or single-income households. Base it on essential expenses, not total spending.
Set your own savings target
Based on what you actually spend, not an average. Nothing leaves your browser.
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