Gen Z: Here’s How Much You Should Have in Your Savings by 25

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Trying to save as a young adult can be difficult. You may be a few years out of college, earning an entry-level salary and likely still figuring everything out. Planning ahead and learning how to be financially responsible is a great way to ease your financial stress, which is why it’s important to know how much cash you should have saved up by your mid-20s.

Take a look at how much experts think you should have socked away and some ways you can bolster your savings moving forward.

How Much You Should Have Saved by 25 

Avoiding unnecessary expenses, seeking guidance from financial advisors and sticking to an achievable budget are great ways to start saving. GOBankingRates gathered different experts’ opinions on what you should have in your bank account by 25 to see if you’re on track financially.

Remember, 25 is still very young – if you haven’t met your savings goal yet, you have plenty of time to catch up.

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3-6 Months of Expenses

A good range to have saved by 25 is usually between three to six months of living expenses, explains Sean K. August, CEO of The August Wealth Management Group. Putting away this cash can help prepare you for unforeseen circumstances, such as loss of income. 

Whether your savings should be liquid versus invested varies based on your risk tolerance. August says that “typically, it’s recommended to have an emergency fund of at least three to six months of living expenses in a liquid savings account, while longer-term investments can be made based on individual goals and risk tolerance.” 

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20% of Your Annual Income

The amount you’re able to save varies greatly depending on your income, expenses and financial goals. Alice Rowen Hall, director of Rowen Homes, suggests that “individuals should aim to save at least 20% of their annual income by age 25.”

For example, if someone is earning $60,000 per year, they should aim to have $12,000 saved by the age of 25. Although this may sound daunting, Rowen offers recommendations on how to save: “This can be achieved through a combination of saving in a retirement account, such as a 401(k) or IRA, and building an emergency fund that covers at least three to six months of living expenses.”

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At Least 10K

If you’re having trouble saving or don’t have a steady income to rely on, Sam Underwood, an e-commerce SEO consultant, suggests, “A good amount to have saved by 25 years old is at least $10,000. This may seem like a lofty goal, but it’s achievable with proper planning and saving strategies.”

At Least 20K 

Alex Milligan, a marketing and growth specialist, believes that “to be on the right track, you should aim to have saved up at least $20,000 by your 25th birthday. This amount can be achieved through a combination of saving, putting money away in an investment account, starting a business or a mix of all three.” 

3 Tips To Save More  

These numbers may seem daunting, especially at this time in your life, but everyone’s savings journey looks a little different. The most important part is establishing good financial habits early on. 

“Each person’s financial situation is unique. Some individuals may be able to save more than others based on their income and expenses, while others may face financial challenges that make saving more difficult,” Rowen reassures. 

Paying off high-interest debt is a top priority. Once you have done so, you should definitely be allocating a certain amount of your income to a savings account. According to Mark Wenger, founder and CEO at, the median amount in the savings account of a 25-year-old is $10,500. Here are some expert tips on how to hit that mark and best save your cash. 

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Use a Budgeting App

It’s essential to make saving a priority from a young age. One way to do this is by using a budgeting app. Underwood suggests utilizing Mint or Personal Capital to track expenses and identify areas where you can cut back. 

Use Cash-Back Apps

On a similar note, using cash-back apps such as Rakuten, Ibotta and Swagbucks to earn money on your purchases can help you save. By earning cash back on your purchases, you can get a percentage of your money back and put those savings toward other financial goals, according to Michael Hamelburger, business development specialist at Bookminders

Consider Long-Term Investments

Once you have set aside enough money for an emergency fund, it is a good idea to factor the rest of your savings into investments. Milligan suggests investing in index funds, stocks or ETFs, which can provide a steady stream of income while also helping to hedge against inflation. Another option to consider is investing in real estate. This longer-term investment provides more opportunity for growth over time, so it’s a great consideration for your savings plan.

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