How much should i save

Getting Started. Planning for Retirement. Retired: What Now? Personal Finance. Credit Cards. About Us. Who Is the Motley Fool? Fool Podcasts. New Ventures. Search Search:. Oct 9, at AM. Author Bio Adam has been writing for The Motley Fool since covering consumer goods and technology companies.

He consumes copious cups of coffee, and he loves alliteration. He spends about as much time thinking about Facebook and Twitter's businesses as he does using their products. For some lighthearted stock commentary and occasional St. Louis Cardinals mania Follow admlvy. Key Points Everyone's savings journey starts off differently. Not everyone needs to save the same amount if they don't have the same big expenses. Follow these simple guideposts to see if you're on track for a successful retirement.

Image source: Getty Images. Catch-up contributions for k. Join Stock Advisor Discounted offers are only available to new members. Never having extra money, I always worried about not having enough savings -- but now that I'm 69, those little growth stocks I began slowly accumulating in an IRA back in my late 30's are now exploding and now the mortgage is paid off and we have a nice nest egg. You never know, just keep trying and it might work out better than you imagine! All definitely possible, 41 years old.

I also have k in k and make under k a year. Also forgot to mention that I own 5 cars all payed off and 5 bikes with no payments. The numbers used are so far off my own personal numbers I find the above of no value other than seeing how far off people are off with their thinking and spending.

The only numbers I would agree with might be the college fund. The rest are way too high except emergency fund. However I have several times more than that. But I learned and keep pushing to a goal in all things. Some levels took decades to reach. Did you look at all that information about money for old age day. Well how long? Like into the here and after long term? You know self taught. No fancy elite Diplomas on my wall, no time for school. Was always working trying to build for the old age you know?

Would have been nice though. No cheating, can't go look one up and then tell me. Can I trust you? If we are doing this that is written in this article th. Over double the 50 yr. I guess I'll quit saving and just start blowing money on stupid stuff Hey folks.

People see a number and they sometimes get upset and reject everything. Your ability to retire really depends less on you income and more on your savings rate. It also makes budgeting easier. The easy way is when you do your taxes, take your bank statement from the end of last year. Now look at it again at the end of the year. Now, how much did you invest in a K. If everything else is gone no assets remaining then you spend the rest. That's your consumption. You're doing pretty good.

Your in trouble. You'll never make it. Get the growth. What rubbish. If savings is not for spending in old age what is it for? Everyone should read "Millenial"'s response above and stop whining. This is about discipline not income. I guess it helps financial advisors if people always think they are behind Use it as it uses you, move on when you can. Move around all of the USA as needed to grow your income. Be frugal and prepare for the future but live in the present.

If one limits themselves to saying I'm only going to work in one area then they need to take that understanding to realize they just limited themselves.

I think I made a mistake. I made saving for kids 2 college Priority 1 first 18 years. Retirement Priority 2. My kids have zero college debt but I wish I had more going into retirement. I have a different view on saving.

Granted YOU must safe for the future, unexpected bills and the like. I consider cash money in the forms of paper money, stocks, any investments that involve a cash payout. But how much is a dollar worth? Should the economy go broke. Diversify your savings in anything you can sell,. I prefer real estate, the name of the game is cash-flow to supplement your income from a job eventually replacing your income.

The goal is to buy one rental property per year, and not when the market is in a bubble like the stock market is now Or back in when the real estate market was a bubble. The returns I. Many will get hurt in this next stock market bubble. The smart money is moving to real estate now, those that pull out of the market timely, then the real estate bubble w.

Isn't that a contradiction of facts. Once someone is 80, savings should not be the highest priority unless you are stating that you are meant to let the next generation inherit your hard work.

Where do you invest Rafael O. I also like to do that but where to invest? A person making 50k can barely live much less save. I don't have to skrimp on anything. Can i buy a Bentley. Yes, but i don't. I buy them because it means nothing to me. People you are telling to save will have no access to any great food items , Good restaurants, Sporting events are so expensive that I see no way a normal family can attend, I guess the bottom line is credit cards.

I hope this all works out before they start calling me to send in money. At 32, I am only barely making this happen. I started working at 15 and when I hit 23 after college I cashed out my k, paid off student loans, and bought a house. I kinda feel like it was a good decision even though I had to start over with my k. This stuff is tough I'm behind on the way to 40, but at the rate I'm saving and investing will have reached the end retirement goal by the time I'm Posting this, because a lot of comments are mentioning "save young".

I don't disagree with this, -it's the smart way-, but it's still very well possible to save if you focus on it. In other words, don't feel hopeless and acknowledge your commitments towards the end game regardless of when you start.

I didn't have the same access to things when I was younger as I do now. Most Americans that I know, live from hand to mouth and have no savings at all. I'm the rich one in the family, so saved sister and brothers houseK later, yet I only have K to my name, but have a military retirement. The reality is, most people have no savings, since the taxes in the US prevents most from saving any money.

These numbers are WAY off. Note, this isn't even PRE tax. Where did they gather their data at, the Hamptons? Holy crap. The statistics you quote are obviously missing the point of most personal realities as noted in the interesting, humorous and stark responses submitted below. I think you focused far too heavily on the "savings" theme and ignored the "investment" aspect that allowed this 79 year old man to enjoy life far beyond any "savings rule" you have presented. Dang, I believe these numbers are way to low.

Things to consider—-As a retired guy now, I started saving for retirement immediately upon graduation from college. What did I do? I invested it right away. A start. Note: I started working at age 12—yard work, farm work and had a real job from age 16 forward.

I always had a job and sometimes two. I worked my entire college time including full time summers and during the school year as I was on my own from age 18 forward. I lived cheap in college with a roommate. After college I stayed living the same college expense and stock piled monies right away for several years.

Think: safety fund. After that, I rented a room in a house from an owner I rarely saw. Cheap, but nice. Again, no lease and saving monies while having a blast.

Eventually, I bought a late m. Where in the states are these average yr olds working? Your taxes a different.. How do u figure to 11times my Income? What u think Soc Sec pays this Days sure not K? Besides my Kids make more then i do!

Some of my GK way over K a year! The table above is really illogical. So, we need to triple our savings in 10 years? Then we need 5x our income by age If you make a decent contribution and invest your savings in the stock market, it seems reasonable that you can double your savings every 10 years. So, by 40, you should be able to save 2x your income, by 50, 4x, and by 60 8x.

I really dislike that out-dated table that just has people throwing in the towel when they are hopelessly behind at Why do you need that much at 80, at some point the amount should turn around and go the other direction. I am 53 and have absolutely no savings. I've been a waitress my entire life also a single mother now raising to grandchildren. Is there any hope for me to retire?

These numbers are crazy. I made my first million dollars by age I did not start a successful business or inherit money from a previous generation. I made this money simply by working as a professional Engineer and saving and investing. I just don't see this as being "lucky". I wasn't lucky. It was just saving and investing. I was about as average as you can get. It took me 13 years to go from a negative net worth to a million dollar net worth.

I never had any help from my parents or anyone. This is definitely possible. In fact, I think this should be standard. Oh, by the way, the million dollars in is quite a bit more now. In , it's more like 2 million dollars, so adjust your expectations for that.

It's really not that hard. That period of time was good for investing, but I doubt it was on. Unrealistic money goals when most people have to pay off cars, homes, college ect. Your better to aim for saving a paycheck each month. Little savings is better than no savings. Please tell me how most people can save very much money when there are ongoing economic problems like , for example, rising cost of living, disasters, sickness, unplanned events, accidents, rental increases, etc.

Capitalism is the religion of death? Please, capitalism made the USA, The greatest country in the world. It gives each of us the opportunity to become a business titan if we want it and work for it.

I don't know what cities you are using by saying most 25 to 34 year old people spend dolars a month. Where I live most people don't even make a month. So those are very unrealistic numbers. I have been retired for over 20 years. What these people project is useless.

When you retire your living expenses go down significantly. Working is expensive. The cost of commuting, the cost of daily lunch, coffee, I would buy breakfast on the way to work, special parties at the job, charity collections, It all ads up.

That is what retirement is like. You do not need that much money. Think of what you really need, forget the wants, then how much do your needs cost? That is what you need for retirement. Our products Resources Tools. Partner with a financial professional Investing Investment watchlist Investment performance Life insurance performance Market commentary.

Banking support Today's rates Your Money insights Build an emergency fund. Savings solutions. Financial education Resources. Enroll in an employer's plan Open an account Download our mobile app Need online access? Plan sponsors Consultants Advisors. Insights Insights Home. How much should I save each month?

When someone asks how much money they should save each month, I throw them a curveball reply:. That's a serious question. Your ideal savings rate depends on your specific, long-term reasons for saving.

Your short-term savings can get used to vacation in Aruba, buy holiday gifts or pay your taxes. You might use this money to replace your dishwasher, fix your car's timing belt, cover a major insurance deductible, stay afloat when you're between jobs and make a down payment on a home.

Now back to the original question: How much should you save a month? Let's break this down by goal:. Sound daunting? Don't worry: your employer match, if you have one, counts.

Our online tools can help you calculate your needs for retirement and other financial goals.