Personal finance guru Suze Orman recommends an eight-month emergency fund because that's about how long it takes an average person to find a job. The personal savings rate, the amount of disposable income people save, was only 4.4% in April, according to data from the U.S. So, to answer the question, we believe that saving one to one and a half times your retirement income before age 35 is a reasonable goal. Conventional wisdom states that couples in their 30s should have three times that amount saved for retirement.
To ensure you are making the most of your retirement savings, consider investing in a Best 401k Gold IRA Rollover. As important as those goals are, you'll also want to save so you can take advantage of the good things life has in store for you, whether it's getting married, buying a home, or just going on vacation with your family. While it certainly depends on your situation, experts have general guidelines for what you need to save at every stage of your life. If you want to save for a couple of years, such as for a new car or a down payment on a home, you might consider investing money in a money market fund or in a CD, which could generate a little more interest than in a typical savings account. You may also consider adjusting the amount based on your obligations with bills, family needs, job stability, or other factors.
The amount you need to save to survive an adverse life event depends on your financial situation and your safety and that of your family. However, you can choose to save nine to 12 months on expenses if you're worried that a protracted emergency will drain your savings. Dedicating more hours to work, getting a part-time job, selling items you no longer need, or starting a side activity are ways to earn extra money that you can save. Whatever it is, you'll want to save some money, especially if you want to avoid having to carry thousands of dollars in expensive credit card debt.
If you're struggling to save, many employers offer financial wellness programs or other tools that can help you with budgeting and basic finance.