Saving money is one of those things we all know we should be doing, but figuring out how much to save, and when, can feel like a mystery. Whether you’re planning for retirement, building an emergency fund, or simply working toward a more stable financial foundation, the key is setting long-term goals that align with your life stage.
But how do you know how you’re doing? If you’ve ever wondered, “How much should I have saved by now?” or “Am I on track for retirement?”—you’re not alone. In this guide we’ll break down realistic savings benchmarks by age, so you can see where you stand, uncover opportunities to grow, and take the next step toward a stronger financial future.
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The Importance of Saving at Every Stage of Life
Your financial needs, responsibilities, and goals don’t stay the same, and your saving strategy shouldn’t either. From your first job to retirement and everything in between, each stage of life brings new opportunities to build security and prepare for the future. Whether you’re setting aside money for emergencies, investing for long-term growth, or simply trying to get ahead, understanding how your savings needs evolve over time can help you stay one step ahead.
By thinking in terms of life stages, rather than just ages, you can create a savings plan that grows with you. In this guide, we’ll walk through what to focus on in each decade of life, with practical benchmarks to help you stay on track.
Setting Up Strong Financial Foundations in Your 20s And 30s
You might be wondering, “How much should I have saved by 30?” It’s a common question—and a smart one. These early adult years are full of financial pressure: student loan debt, entry-level paychecks, and rising housing costs can all make saving feel nearly impossible. But they’re also the years when building good financial habits can make the biggest impact on your future.
This is the time to start creating your first nest eggs—small but meaningful savings goals that prepare you for emergencies, major purchases, or long-term investments. One of the most important? An emergency fund. Life happens—unexpected car repairs, medical bills, or job changes can strain your budget overnight. A solid rule of thumb is to save three to six months’ worth of living expenses. Even small monthly contributions add up over time. Not sure how to get started? Check out our article on how to start an emergency fund for easy, actionable steps. Unsure whether to park your funds in checking or savings, our post on checking vs. savings accounts breaks down the pros and cons of each, with more information on maximizing returns from your savings account here.
Budgeting for Success
If you’re still trying to track where your money goes each month, building a simple budget is a great place to begin. Our budgeting guide can help you stay organized, identify extra funds to save, and set realistic goals. And when it comes to where you’re keeping your money, be strategic—our post on checking vs. savings accounts walks through the pros and cons of each, including how to maximize your savings account’s earning potential.
If homeownership is something you’re eyeing in the future, now’s also the perfect time to lay the groundwork. Our Gen Z Guide to Saving for a First Home has helpful tips on how to start preparing early, even if buying a home feels years away.
Once your emergency fund is in place, the next step is to begin saving for retirement. Whether through a 401(k) or an Individual Retirement Account (IRA), even small contributions can grow into substantial wealth thanks to compound interest. A good target is to have the equivalent of one year’s salary saved by age 30. That number can vary depending on your lifestyle and income, but the habit of saving consistently is more important than hitting a specific figure.
Need help developing smart saving habits? Our post on habits to build wealth can help you take your next step with confidence.
Strengthening Your Financial Security in Your 40s
By the time you are in your 40s, your financial responsibilities have likely expanded. You may have a mortgage, kids, or other big expenses that require careful budgeting and planning. But you have also likely developed some good habits that have helped you along the way.
At this stage, a common benchmark is having saved three times your annual salary. This is an ambitious goal to be sure, but it reflects the need for long-term savings as retirement approaches. If you haven’t started saving consistently for retirement, now is the time to make it a priority. In addition to your 401(k), it’s worth exploring Traditional IRAs or a Roth IRA to maximize your retirement nest egg.
During this stage between early adulthood and retirement, building wealth and ensuring financial security should also include taking a look at debt reduction. Paying off high-interest debts like credit card balances frees up money to save and invest. It's easy to accumulate debt, especially when establishing credit or dealing with unexpected expenses. Paying off high-interest debts like credit card balances can free up your money to save and invest. While saving, it's a good idea to maintain your emergency fund and adjust it based on your living expenses. Remember to have around 3 to 6 months' worth of living expenses. For more help on wealth management and investing, check out our Wealth Management & Investing Guide for Millennials.
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Preparing for the Golden Years in Your 50s
As you enter your 50s, your savings strategy should shift more heavily toward retirement. You may be nearing retirement, earning more than ever, and reaching the peak of your career. This is a critical time to evaluate your retirement savings and make adjustments based on your financial goals and timeline.
By age 50, a common benchmark is to have saved five times your annual salary. This target can help ensure your retirement fund supports your desired lifestyle. The closer you get to retirement, the more important it becomes to increase your savings and fine-tune your investment strategy.
One powerful tool at this stage is catch-up contributions, which allow you to contribute additional funds to your 401(k) and IRA accounts. These extra contributions can make a significant difference in your overall retirement savings as you approach your final working years.
And while your focus may be on retirement, it’s still important to maintain a solid emergency fund. No matter your age, having a financial cushion for unexpected expenses remains essential.
Tips for Consistent Saving and Building Wealth at Any Age
Starting and maintaining your savings accounts is a big undertaking at any age. Check out this link on healthy habits and see the tips below to keep you consistent:
- Automate your savings: Set up automatic transfers to a savings account or retirement account each payday. This makes saving a habit and ensures you’re consistently building your savings.
- Track your spending: Knowing where you spend your money each month can help you cut back on unnecessary spending. Consider using a budgeting app or spreadsheet to keep track.
- Prioritize high-interest debt: Pay off the high-interest debt you have first, so it doesn’t chip away at your savings. Getting rid of credit card debt or personal loans before putting money in savings is key.
- Increase your income: Side gigs, asking for a raise, or investing in your skills can increase your income and boost your ability to put money towards savings rather than just bills.
- Use Your Employer Benefits: Contribute to retirement plans like 401(k)s, especially if your employer offers a matching contribution. This is essentially “free money” that can help you grow your retirement savings faster.
Take the Next Step Toward Financial Security
At CS Bank, we’re here to help you make smart financial choices at every stage of life—from starting your emergency fund to building long-term retirement savings. Whether you're in Harrison, Cassville, or anywhere in Northwest Arkansas, our team is ready to guide you.
Stop by your local CS Bank branch or contact us to explore your options for IRAs, savings accounts, or debt management tools. The financial habits you build today can lay the groundwork for a more secure and confident tomorrow.