At what age should you have $100,000 saved?

There's no set rule of thumb for a $100,000 target. Financial planners typically recommend saving one year's salary by age 30 and three times your annual salary by age 40. Use these guidelines along with your income to determine how you're doing.

Is $30,000 in savings at age 25 good?

If you're saving about 15% of your income (between retirement accounts and other savings vehicles), the average 25-year-old should have about $20,000 saved. But a "good" savings figure depends on your income, how many years you've been in the workforce, and your general financial goals.

What is a good salary for a 25-year-old?

The median annual income for workers in the 20 to 24 age group is $41,392, while the median for the 25-34 age group is $59,800, according to BLS data. There's no set definition of what a good salary is, as it depends on your profession, location, years of experience, and more.

Should I pay off debt or save first?

It depends on what type of debt you're talking about. If you have high-interest debt, like credit cards, it's generally a good idea to prioritize paying them off before adding money to savings. On the other hand, if you have low-interest debts, it can still be a good idea to save money, especially if you're trying to establish an emergency fund.

How Much Money Should I Have Saved by 25?

Saving in your twenties is hard but not impossible. Let's look at how much you should be aiming for.

By Matthew Frankel, CFP – Updated Mar 6, 2026 at 2:23 PM EST | Fact-checked by Parker Hicks

Key Points

By age 25, aim to save 15%-20% annually, targeting at least $20,000 savings.
Median salary for 25-year-olds is $59,800; consider increasing savings as income grows.
Start an emergency fund and explore 401(k) matches to boost long-term savings.

By the time you're 25, many people reading this have likely spent at least a few years in the workforce. However, you haven't had too much time to save year, and you may be starting to think seriously about saving money.

At 25, saving might still be a challenge. This is especially true if you're earning an entry-level salary or you have significant student loan debt.

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An infographic outlining different methods to save money when you're 25 years old. — Image source: The Motley Fool

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Build your emergency fund first

Your first priority should be to establish an emergency fund. That's money that you keep in a savings account, not the stock market, so that you can quickly access it if you need it.

Eventually, you should have six months' worth of emergency savings. This may seem like an impossible task, but you don't need to get there right away. Even if you can build a $1,000 emergency fund, you'll be prepared for most of the unexpected expenses people face. For instance, you could put half of your extra money toward emergency savings and the other half toward investing or paying off debt.

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Budget for health insurance

If you're still on a parent's health plan under the Affordable Care Act, consider yourself warned. You need to budget for and obtain your own coverage by age 26 (the age when most family plans will kick you off). Start planning for the extra expense now by shopping for an affordable healthcare plan or applying for jobs with companies that offer health insurance.

When you don't have health insurance, one unexpected trip to the ER can drain your savings and leave you with significant debt. If only for financial reasons, don't even consider going without health insurance coverage.

Collect your employer's 401(k) match

One of the fastest ways to build retirement savings is to take advantage of a company 401(k) match if your employer offers one. Even if your employer only matches 25% or 50% of your contribution, that's still essentially a 25% or 50% return on your investment for the year.

Even if your employer doesn't match your contributions, or you're self-employed, make every effort to invest for your retirement. An individual retirement account such as a Roth IRA is a good choice, since withdrawals in retirement are not considered taxable income and the money grows tax-free until withdrawn.

Not sure where to start? Motley Fool Money has reviewed and ranked the best IRA accounts available today, so you can find the right fit for your situation and start putting your money to work.

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Take on a side hustle

If you're serious about upping your savings game, or have a big goal like achieving financial independence and retiring early, then you might not want to wait around for pay raises from your employer. A side hustle, which can be anything that generates extra cash, is a great way to increase your savings.

A side hustle may not be doable for everyone, but if you can spare the extra time, it's definitely financially worth it, especially when you are young. The younger you are, the more powerful the effects of compound interest are on the value of your portfolio.

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Save more as you earn more

Even if you're not earning a high income now, the best way to ensure your savings rate increases over time is to start planning for the future when you earn more money. Keep your expenses low and determine what's most important to you.

As your income increases, it's OK if your expenses rise, too. Your costs just need to increase at a slower pace than your income. Set a goal of saving a certain and increasing percentage of your pay with every raise you get. If you can live below your means and avoid lifestyle inflation, then you are well-positioned to make your savings balance soar.

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Frequently asked questions

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst and personal finance expert covering financial stocks, REITs, SPACs, and personal finance. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, The National Desk, and other TV networks and publications for his financial, stock market, and investing expertise.

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