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Here’s One Expert’s Hilariously Lofty Take On How Much Money You Should Save At Each Age

Here's One Expert's Hilariously Lofty Take As To How Much Money You Should Save At Each Age

This one will hurt. There’s no sugarcoating it. Part of me debated whether it was even worth covering because, honestly, our job is to entertain you. But it’s out there, and this conversation needs to happen. We’re biting the bullet. Together.

CNBC spoke with Kimmie Greene, a money manager with Intuit and spokesperson for Mint.com, about how terrible Americans are at saving money, and what we should be aiming for. Hold onto your butts.

In your 20s: Aim to save 25% of your overall gross pay, Greene tells CNBC. “That 25% is the combination of 401(k) withholdings, matching funds from your employer and any cash savings that you have,” she notes. “It can also include debt repayment.

Well, that’s lofty, no? My twenties are long gone, but I’m still haunted by juiced-up wedding seasons, bachelor parties, and boys’ trips that were just too wild to say no to. That’s the problem. Your twenties are all about saying no to expenditures like that, but in the age of Instagram Albums, it’s nearly impossible to go into hiding after saying no.

Greene also notes that we should, “Just make sure your lifestyle expenses don’t exceed 75% of your gross income,” because fuck all of us.

Now it gets fun.

By age 30: Have the equivalent of your annual salary saved, Greene says. If you earn $50,000 a year, aim to have $50,000 in savings when you hit 30.

What do you want me to say? That it’s doable? I’m sure it is if you have a time machine. I know a few people with some very profitable side hustles that probably knocked this out of the park. But my goodness, this is painful. We’re in it together.

By age 35: Have twice your annual salary saved.

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By age 40: Have three times your annual salary saved.

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By age 45: Have four times your annual salary saved.

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By age 50: Have five times your annual salary saved.

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That’s enough. You get the idea. Let’s just all agree to chill out on the postgraduate degrees, and to say no to the occasional destination wedding. And maybe chill on the golf. Green fees are getting out of control and you can’t even hit your 1200 dollar irons. Also, maybe don’t pull the trigger on that jet-ski – unless it’s a super tight one that actually makes a lot of fiscal sense since your buddy’s brother has a lake house that’s only a couple hours away, and he’ll probably let you and your boys chill there when he’s not relaxing with his family.

[via CNBC]

Image via Shutterstock

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Dave

Lawyer. Writer. Dude doing business. I'm the meatloaf guy from tv.

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