How much should you have stashed away?
While the amount you need in savings is highly personal, and specific dollar amounts can be arbitrary, money expert at Intuit Kimmie Greene has a simple formula to help you figure out if you’re setting aside enough money.
In your 20s: Aim to save 25 percent of your overall gross pay, Greene tells CNBC Make It. “That 25 percent is the combination of 401(k) withholdings, matching funds from your employer and any cash savings that you have,” she notes. “It can also include debt repayment.
“Just make sure your lifestyle expenses don’t exceed 75 percent of your gross income.”
By age 30: Have the equivalent of your annual salary saved, Greene says. If you earn $50,000 a year, aim to have $50,000 in savings when you hit 30.
Again, this includes any retirement-account contributions, matching funds from your company, cash savings or money you have invested elsewhere, like in index funds or with robo-advisers.
