Unless you're a bajillionaire, which is highly unlikely, we've got a feeling that you could use some money saving tips that can help prepare you for the unknown road ahead. Let's face it, even the highest-paid employee with a history of good luck, success and job security still worries about their finances, with money saving always one of the most difficult and tricky things in everyone's life. The question of, how much should I be saving? is probably one that crosses your mind every month, right? If you're like us, it most definitely is!
According to the Fidelity info, money saving should actually be pretty simple, with the general rule of thumb being that a person should have at least their annual salary saved up by age 30, with increases with each age from there. To better help understand the incremental money saving with ages, here's a chart that Fidelity put together to see where you should be at.
Of course, this doesn't mean that the formula's an exact science. After all, many people splurge on things the minute they get that long awaited raise at work, or find some other disposable income. However, the graphic and money saving info should definitely be used as a barometer as to what your finances might want to look like as you get older and closer to retirement. No one wants to work until 90 years old, guys.
And, while we've given you tips on how to become a millionaire by the age of 40, as well as how to make thousands from your bank with a little trick from a financial expert, it's best to have a steady and consistent plan each month for your financial future. Whether that means following the above Fidelity chart or sticking to something set by a financial advisor, living within your means now in order to live a better life later is important to remember.
Unfortunately, while the Fidelity information is helpful, according to Two Cents, the U.S. Government Accountability Office reported that, in 2015, a shocking 29 percent of households aged 55 or older had no retirement savings. That's more than alarming and extremely worrisome. It's understandable if a person can't put away a big chunk of money for savings each paycheck or month, but, again, finding the right formula for yourself should be key in order to live within your means and maintain (and then progress) your lifestyle.
To further echo that, Adheesh Sharma, director of financial solutions for Fidelity Strategic Advisers, Inc., says the later money saving goals are the most important, per Fidelity:
"Think about these savings factors as milestones along the way. And don’t worry if you are not always on track. The later milestones are the most important, and there are things you can do along the way to catch up. Of course, the earlier you take action the better.”
So, when it comes to how much should I be saving, there's no set in stone answer, but there are guidelines and measurable goals that should be considered, so do your best to follow those in hopes of having enough saved up to help reach your future financial goals. To get more money saving info, head on over to Fidelity's website.
Lead image via Getty and embedded graphic via Fidelity.