How Much Money Should You Have Saved By the Time You’re 35?

By Kayla Sloan
March 30, 2018
Chime is a financial technology company. Banking services provided by The Bancorp Bank or Stride Bank, N.A.; Members FDIC

If you’re in your early 30s, you may be starting to think more about your financial situation, especially as it relates to your future retirement.

However, thinking about your future goals is quite different from actually taking action toward achieving future financial independence. In fact, a 2018 Retirement Savings survey revealed that about 37% of those aged 35-54 have $10,000 or less in retirement savings, with about 12% having no retirement savings at all. If this rings true to you, it’s probably time you start putting a plan in place o to save money so that you can afford your life’s goals.

But before you get started, you may be thinking: how much money do I need to save by the time I’m 35? The answer: there is no one answer. This amount can vary based on your individual circumstances like how much you have saved to date, what your goals are, how much money you earn, what type of lifestyle you lead, and where you live. For example, if you live in an expensive city like New York, it may be tough to save as much money as someone with a similar income living in Kansas City.

Tips for Saving for Retirement by Age 35

Reshell Smith, a certified financial planner and founder of AMES Financial Solutions, said she recommends to her clients that they “save as much as they can, as often as they can.”

Her biggest suggestion to those in their 30s is to sock money away into your employer-sponsored 401(k) retirement plan. In fact, save at least the minimum amount necessary to get the full employer match. What if you don’t have a 401(k) at work? In this case, Smith says you should still be saving for retirement on your own.

In general, you should save at least 10% of your income into an individual retirement account (IRA) and other investments. Better yet, if you can afford it and have a 401(k), Smith says you should invest on your own in addition to participating in your employer-sponsored retirement plan.

What Else Should You Save for at Age 35?

Besides saving for retirement and future goals, Smith says her clients in their mid-30s still want to enjoy life and cross some things off their bucket lists, such as taking trips or purchasing big-ticket items. Affording these things generally requires saving money first.

“These bucket list items cost money and they have to be planned for too,” says Smith, adding that her clients often set up separate fun accounts or travel accounts to save for these things.

Yet, there are times when Smith’s clients don’t quite reach their savings goals for their bucket list items. She says this is ok and it may mean it’s time to pivot. For example, one of her clients wanted to go on a trip abroad last summer. But, when the trip wasn’t attainable, it was time for the client to make a smart swap and go somewhere cheaper. To this end, Smith says it’s not about giving up on your goals if you don’t reach them, but instead doing something else so that you can still enjoy life while sticking to your financial goals.

How to Get Caught Up

What should you do if you’re in your mid-30s but you’re way behind on your savings goals for retirement and other life events? Indeed, this happens and when it does, Smith encourages her clients to get caught up. You can catch up, too.

“This is the time when you have to hustle. Whatever that may mean for you, you have to do it,” she says.

So, if you feel you’ve got a long way to go to meet your savings goals, perhaps you can take on a part-time job, start a business of some kind, or find a side hustle to provide you with extra income. After this, you should work on changing your habits and becoming more disciplined.

“You have to change your behavior and become disciplined with your money. If you don’t have a plan, you’re planning to fail,” Smith says.

For example, if you often go out with your girlfriends, why not make girls’ night out a girls’ night in to save money?

“You can still have fun and spend less money,” she says.

Automate Your Savings

If you haven’t already started automating by the time you’re 35, now’s the time to do this. This will help you get caught up on your savings and sock away more money for your goals – without thinking about it.

An easy way to start is to pay yourself first. This means that a portion of your paycheck will be automatically deposited into your savings account. By doing this, you save money before you spend it on other things, including bills, going out to dinner and blowing it on unnecessary stuff.

To get started, you can check out Chime, a bank account that helps you beef up your savings automatically. For example, if you’re a Chime member, you can save money by automatically putting a percentage of every paycheck into your Chime Savings account. Chime also helps you save by rounding up all of the purchases and transactions you make on your Chime debit card. These round up amounts are automatically deposited into your Chime Savings account.

Ready, Set, Save

As you approach age 35, it’s important to create a savings plan to either start saving or beef up what you’ve already saved. Using the tips above, you will set yourself on a path toward achieving your money goals – starting right now. All it takes is discipline, focus, motivation and commitment. You’ve got this!

This page is for informational purposes only. Chime does not provide financial, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for financial, legal or accounting advice. You should consult your own financial, legal and accounting advisors before engaging in any transaction.

Was this helpful?
Did you like the post or would you like to give some feedback? Let us know your opinion by clicking one of the buttons below!
Thanks for your feedback! 👍
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Banking services provided by The Bancorp Bank or Stride Bank, N.A., Members FDIC. The Chime Visa® Debit Card is issued by The Bancorp Bank or Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Chime Visa® Credit Builder Card is issued by Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see back of your Card for its issuing bank.

By clicking on some of the links above, you will leave the Chime website and be directed to a third-party website. The privacy practices of those third parties may differ from those of Chime. We recommend you review the privacy statements of those third party websites, as Chime is not responsible for those third parties' privacy or security practices.

Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The Bancorp Bank and Stride Bank N.A. (“Banks”). Banks are not responsible for the accuracy of any content provided by author(s) or contributor(s).

© 2013-2021 Chime. All Rights Reserved.