Advertising
Advertising

How Much Money You Should Have Saved at Different Stages of Your Life

How Much Money You Should Have Saved at Different Stages of Your Life

Would you love to be financially independent? Personally, it means having enough money to do whatever you need to be done without having to worry about the state of your finances because your finance is still great.

Yes, I know saving can be quite difficult. But I’ve found that being too strict with savings can boomerang, you have to give little leeway to enjoy yourself and still save. You don’t have to cut off every enjoyable thing in your life to be able to save. So, my advice? Don’t be too strict on yourself about it, you can have fun while saving enough for the future.

This is achievable, yes, you can do it! Let’s see what you can do to make saving easier:

Important Rules to Follow When You Save Money

  • You do not necessarily have to have a specific sum. Instead, you should have a specific percentage.
  • A specific percentage is important because the percentage would adjust as your income and profit increase or decrease, without affecting your livelihood.
  • You do not have to increase your spending rate to match your income. Instead, you should rather increase your saving percentage if you find that you have a lot more money left after your taxes, expenses and bills have been met.
  • Collecting precious items can be an interesting idea to save money. You can collect gold, silver, diamond or anything that keeps appreciating irrespective of inflation.

How Much You Should Save at Different Stages of Your Life

The Stage of Starting your Career

At this stage, you are most probably in your 20s and saving is very unlikely to be a priority as there are numerous expenses. However, it is reasonable that you should aim to save 25% of your overall income yearly. This means that you would try to cover up all your expense (including debt repayment) with 75% and make sure you DO NOT exceed that. If you properly plan your budget, you should be able to save enough for the future.

Advertising

    Photo credit: Source

    The Stage of Bringing up a Family

    At this stage, you are in your 30s, 40s, and 50s and long term saving is even more difficult with lots of responsibilities, in addition to short and medium term savings for emergencies and children’s college fees. However, it is advisable that you should have twice the equivalent of your annual income saved up every five years. For example if your annual income is $50,000, you should aim at saving up to $100,000 in 5 years.

    Have your savings account linked to your main account so you can transfer your agreed funds into it at the start of each month. This would make it easier to save and remove procrastination.

    Advertising

      Photo credit: Source

      The Stage of Thinking of Future Retirement

      At this stage you should take stock of your savings and work out what you might realistically expect from your lifelong savings plans.

      Through all the saving stages, some tips to help you achieve your main saving goals include:

      Advertising

      Staying on top of your debts and getting a good credit score.

      Your credit score is your financial history and if things get dire you might need to get a loan and you want to be sure that you have been paying off your debts and keeping a clean financial slate.

      Having an emergency fund

      When emergencies happen or you lose job, to avoid dipping into your long term or retirement savings, you can fall back on your emergency funds.

      Advertising

      At the end of the day, saving towards retirement is a long game of saving and saving and saving money. If you are unable to meet your saving goals, it does not make you a failure. The important thing is to get back on track as soon as you can.

        Photo credit: Source

        More by this author

        Kyra Taylor

        Writer and Lawyer

        How Much Money You Should Have Saved at Different Stages of Your Life How to Make and Freeze Homemade Ricotta Cheese Four Best Business Card Printing Sites 4 Reasons Why You Should Use a Resume Template Three Common Causes of a Slow Internet and How to Speed It Up

        Trending in Money

        130 Fun Things You Can Do This Summer Without Spending Much 235 Real Ways to Actually Make Money Online 3How to Make Money with a Blog (According to 23 Successful Bloggers) 4This List of 50 Low-cost Hobbies Will Excite You 530 Fun Things To Do With Your Friends Without Spending Much

        Read Next

        Advertising
        Advertising

        Last Updated on August 15, 2018

        30 Fun Things You Can Do This Summer Without Spending Much

        30 Fun Things You Can Do This Summer Without Spending Much

        Summertime can be a real strain on your wallet. The sun is out, there are people to see, places to be; it’s no wonder you might be short of funds during these sunny months. Not everything has to cost you an arm and a leg.

        Take some time to go through this list of 20 cheap summer activities and make some realistic goals to complete as many as you can.

        Video Summary

        1. Visit a strawberry festival

        Summer is prime time for tasting strawberries. More often than not, an area that grows strawberries will have a strawberry festival. Indulge yourself in strawberry pies, jams, cakes and more!

        2. Have a picnic

        Take your partner or your family to the local park and enjoy a relaxing picnic. Designate each person to bring one food item of their choice to add to the fun.

        3. Camp in your back yard

          The summer heat can sometimes make it hard to sleep. Why not enjoy the heat outside in the yard? Pitch a tent or gaze into the night sky.

          4. Take long walks

          Discover something new where you live. Take the afternoon off from your chores and go for a long walk. You may be surprised by what you discover.

          5. Break a world record

          Breaking a world record doesn’t have to be time-consuming. You could even break one on your lunch hour. Give it a go!

          Advertising

          6. Go on a bike ride

          The number of bike paths on roads in big cities has increased dramatically over the years. Take advantage, and enjoy the summer breeze.

          7. Join a gym class

            The gym is not everyone’s idea of a good time, but why not go with a friend a join a class? Spinning, yoga and step classes are always more fun with friends, and a lot of gyms allow you to pay-as-you-go.

            8. Find a new hobby

            The summer is the perfect time to find a new hobby. Serotonin (our body’s natural “happy” hormone) is produced by the sunshine and will be at a yearly high, which is great for when we want to tackle something new.

            9. Join a sports team

            Not all sports teams are competitive and require huge amounts of your time. Join in the fun with like-minded people, get fit, stay healthy and make some friends along the way.

            10. Make a slip ‘n slide

              Gather your friends, some plastic sheeting, a hose, washing up liquid if desired, and make a huge slip ‘n slide just like these guys. Granted, yours won’t be as big, but you get the idea… it’s fun!

              11. Make a treasure hunt for your kids

              Today’s digital world sees our children more often than not playing inside than outside. Why not create a sense of adventure by making a treasure hunt? Only rule? It has to be outside.

              Advertising

              12. Visit a free festival

              Towns and cities are awash with free festivals, with themes from film to science. Scout your local area and discover something new.

              13. Visit the zoo

                Let’s face it: we love animals. While browsing news websites and social media networks you’re bound to come across a few pictures of cats. Take a trip to your local zoo for a better experience.

                14. Take a road trip

                Enjoy the open road with a few friends and take a road trip somewhere–anywhere. Just go out and enjoy the sunshine!

                15. Play ultimate frisbee in the park

                  Frisbee is always great fun down the park, but why not turn it into more of a competitive sport by playing ultimate frisbee?

                  16. Make your own ice cream

                  Ice cream is a very versatile dessert. Make a sandwich, enjoy a cone, or simply just enjoy a bowl full. Better yet, making your own ice cream allows you to create any flavor you want.

                  17. Invite your neighbors over for a BBQ

                  Advertising

                    When was the last time you invited your neighbors over? Do you even know them? Now’s your chance. Just ask each person to bring a food item so costs don’t mount up for you.

                    18. Get a summer job

                    For many students, summer is the time for relaxation and fun. But who said earning money and being productive isn’t fun? You only get out what you put into a situation.

                    19. Attend a charity event

                    Attending a charity event is a great way to raise funds and awareness for a cause, meet new people, and generally have a good time. Search for your local charity event today.

                    20. Visit a national park

                    National parks are a great way to explore nature and learn something new. You could even volunteer and make a difference in helping restore natural habitats.

                    21. Visit your local comedy club

                      Local comedy clubs are extremely underrated. They are cheap to attend and no doubt you’ll have a barrel of laughs.

                      22. Make your own hammock

                        Hammocks are very relaxing, are perfect for summer afternoons and are surprisingly easy to make.

                        Advertising

                        23. Read in your new hammock

                        Now you have your very own hammock, the only thing left to do is enjoy it. Grab your favorite book and read to your heart’s content.

                        24. Watch a movie outside

                        Movies are great. Relaxing outside in the evening is great. Put them together and you’ve got a perfect combination. In D.C, Maryland and Virginia this summer, for example, you can enjoy a huge number of movies outside.

                        25. Take a hike

                          Hikes are a great way to keep fit and see more of Mother Nature. There are countless trails available for you to explore. Why not try some this summer?

                          26. Learn how to fly a kite

                          As a child, you probably had a kite and haven’t touched it since. Why not dust it off and attempt to fly it? It’s tricky, but well worth the challenge.

                          27. Work out at the park

                          American cities are full of parks with ample space for a work out session. No doubt you’ll be happier to work out in the sun rather than a crowded gym.

                          28. Take your dog to the beach

                            One of the many joys of owning a dog is taking him or her for long walks during the summertime. This joy is enhanced when visiting the beach, for both you and your dog.

                            29. Make a summer smoothie

                            Healthy, delicious and perfect for the summer. Not only that, there are countless recipes ready for you to try.

                            30. Attend a free yoga session at the beach

                            No experience needed and all skill levels are welcome. Take yourself and a buddy down to the beach and try some yoga. You’ve got nothing to lose!

                            Read Next