According to a leading investments firm, workers should have double their annual salaries in savings by the time they reach their mid-30s.
As many people approach or reach their 30s, their responsibilities and priorities change. Whether it’s due to getting married, buying a first home or having children, the way that people approach their finances is likely to change too. Looking ahead to long term financial commitments is sensible, and making sure you have a sizeable amount of money stored away in savings is also a good idea. As larger expenses begin to accrue in your 30s, you ideally want to have a solid foundation to build on.
Save What You Can
US investment company Fidelity Investments say that ideally you should have a year’s worth of salary saved by the age of 30, and by the age of 35, twice that. This may be more than a little ambitious for most people, but that doesn’t mean you should ignore the advice completely. Saving twice your salary may not be possible, but you should be looking to put away as much money as is comfortable, as well as thinking about saving into a pension for retirement.
You shouldn’t be intimidated by these recommendations, or be put off from saving if you know nothing about savings accounts, pensions or investments. If you’d like to know more about how you can plan for your future, please get in touch. Our advisers will be happy to talk through your situation and what it is you are planning to do with your finances.