Saving money is a tricky topic to discuss because many people don’t have the option of saving, and others don’t know how to save money. Below are three things that will tell you how much money you should have saved as certain ages.
- Saving money is tricky but a little bit every day can make a huge difference when it comes to your accounts. Starting at 15, the average age of a high school student, you can save $7,300, with just five dollars a day, by the time you go off to college. Obviously, it’s not enough to retire or buy almost anything up you’ll already be better off than most of your friends and college students. Rack that 5 dollars a day to ten and you have more than half the average amount of a four-year public education, at $14,600. These simple steps can help you get out of college debt or never be in it and can help you learn the basics of saving money. Some would argue that five dollars a day are a huge burden but just cut out your weekly coffee shop coffee and brew your own cup a day and you already more than halfway there.
- Save more than half your income. As a young and single person, there aren’t that many expenses you have if you budget your money right. Once you start making $40,000 a year, the average yearly income in the USA for people under 30, it isn’t that hard to save a little money. Budget in rent, reduce costly spending, and save whenever you can, can lead to a healthy saving account for the future. While many people may have trouble saving half of there yearly income any amount saved is great. If you're young enough and read my first saving trick then you can just continue to save 5-10 dollars a day of your money to save that extra 14,600 dollars a year. Multiply that by 10 years out of college to 32 years old and you’ve already saved more than 140,000 dollars.
- You don’t need the next big thing. Saving is not so much as saving in my opinion but cutting spending. Just like when you are trying to lose weight exercising more calories than you need, too much of a day, and you will start to lose the weight. Adding the same principles to saving and you can learn that not everything is needed. For example, a customer of one of my businesses buys a coffee drink every day for $5.10, and she brewed that same coffee at home she could save up words of three dollars a day. Yes, that would be bad for business for me, but it would save her $1095.00 a year. Add that to other cutting and you have your 5-10 dollars a day.
How much should you have saved by the time your 20, more than 14,000 dollars? At 30, more than $140,000, and so one and so one. Saving is the easy part, it is the cutting spending that will take time.