How Much Savings Should I Have at 35?

Starting a savings journey at any age is feasible with determination and a focus on future security. According to Fidelity, by age 35, you should have saved at least twice your annual income, and by age 40, three times your household income for retirement. This blog will discuss the recommended savings at age 35.
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How Much Savings Should I Have at 35?
Assessing one's financial situation is the primary and most crucial step on the road to creating a way for a secure future. Read on for some practical tips on how to save for retirement!
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In the United States, the personal savings rate stands at an impressive 5%, according to Statista.  A fascinating number, right? This statistic is particularly relevant for individuals in their 30s, who often find themselves in a position to save for the future. However, while some may struggle with daily expenses, others do not know how to invest additional money. 

We get your worries! In this blog, let’s explore the ideal savings one should have when they turn 35 and tips they can follow to invest for the best!

Assessing Your Current Financial Situation

Assessing one’s financial situation is the primary and most crucial step on the road to creating a way for a secure future. You shall consider your income, current expenses, debts, assets, and constant cash flow. You may analyze the current sources of your income and their stability to move further. You will learn about your financial health and steps that require action as you reach the end of your assessment.

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What’s the Average Savings at Age 35? 

According to the Fidelity retirement chart, individuals should have saved at least twice their annual income by age 35. Don’t worry if you do not have the ideal amount secured, as most do not. Per the data collected by the Federal Reserve, the average salary is $20,540, with a median savings of $5,400. If you have yet to start saving, this is your time to harness the magic of compound interest!

Tips to Save Money at Age 35 

Starting a saving journey at any age is not complicated if you are determined and have the will to secure your future. Here are a few tips that you can follow to save money at 35!

Extension in Emergency Funds

When you are in your mid-30s, the significance of emergency funds increases. One has to take care of one’s family and homeownership and should have emergency expenses of at least 6 months readily available, providing career flexibility and saving from unexpected challenges. 

Investing With a Strategy

You can start investing as soon as you are past your debts. Use methodologies like ‘debt avalanche’ and ensure that the invested money curbs your needs and leaves you enough for expenses.

Supercharging Retirement Contributions

Your mid-30s are the most appropriate time to boost your financial planning, and contributing towards a 401(k) is suggested while aiming for 15-20% of your incoming salary.

How to Get Started With Savings?

Getting started with savings is about setting clear financial goals and creating a plan. It’s important to assess your income and expenses to understand how much you can realistically save each month. Here are a few steps on how to get started with savings:

Debt Repayment

Prioritize the fulfillment of your credit card and student loan debts before starting to save. Start by targeting high-interest debts and move further to strengthen your financial goals.

Seeking Advice From Experts

Seeking advice from experts can provide valuable insights and guidance for your financial journey. It can help you make informed decisions and avoid common pitfalls in managing your finances.

Focus on Personal Goals and Growth

In your mid-30s, it’s natural to notice friends achieving milestones like building houses or growing their businesses. However, focusing on your unique financial situation and goals is crucial. Instead of succumbing to social media pressures, concentrate on what’s genuinely beneficial for you. Reflect on your strategies and ensure they align with your aspirations and financial well-being.

Invest in Real Estate by 35 

Consider investing in real estate if you want to develop a substantial net worth by 35. Owning your primary residence provides you with a neutral position. However, if you want to get results from a real estate cycle, invest in more worthy properties!

You can explore hands-on real estate investment with the technique of crowdfunding. This approach is like a low-maintenance real estate investment. You can participate in real estate ventures without property management responsibilities. 

How to save more money at age 35

Stretch emergency fund to 6 monthsIncrease emergency fund to cover 6 months of expenses, especially if you have dependents or own a home.
Pay off credit cards and student loansPrioritize paying off high-interest debt like credit cards and student loans.
Invest money as you eliminate debtAs you pay off debt, invest the extra money, especially for retirement.
Contribute aggressively to your 401(k)Aim to save 15-20% of your pre-tax income for retirement, including your employer’s match and potentially maxing out your IRA.

Savings Expense Categories for Those Aged 35 

After reaching age 35, what savings expense categories come to your mind? You shall also consider personal income, family planning, debts, real estate investments, and other categories. Here is a list of commonly discussed savings expense categories. 

Emergency Funds: Unexpected Expenses Can Come By Anytime!

Unforeseen situations and expenses can come by anytime. People go through job losses, repairs, and other emergencies daily without anything to rely on. You shall have a minimum of six months of savings for minimal sustenance under your emergency funds!

Healthcare Savings: Planning Healthcare Expenses Wisely

You shall plan for your healthcare expenses and consider options like utilization of your 401k, HSA, and IRA. You and your family can get tax benefits, which allow you to save pre-tax money and employer contributions with a Health Savings Account (HSA). You may achieve tax-free withdrawals with such schemes as well. 

Retirement Planning: Savings and Goals for the Future

You can customize your savings goals based on your current salary, desired and expected retirement age, and thought-of post-retirement lifestyle.

The ideal recommendation for retirement savings is three times your household income by the time you are 40. You can leverage and take benefit from the concept of compound interest by starting your savings journey early and regular contributions throughout your earning years. 

Tips for Increasing Retirement Savings

You have earned a relaxing retirement after dedicating years to your career and setting aside funds for family, healthcare, emergencies, and future needs. If you are wondering how to boost your retirement savings, here are some practical tips to consider!

Start Budgeting Today!

You can create required budgets using traditional methods, like spreadsheets and notepad entries, or digital technologies, like applications curated for budget requirements. Divide your funds for various monthly expenses, healthcare, vacations, and retirement. Your well-developed budget will be your staircase toward reaching adequate financial goals!

Automating Savings, Just Like Expenses

You might have heard of the technique to automate regular fund transfers for electricity and phone bills. You can do the same for your savings account, ensuring consistent contributions to your retirement fund. You do not have to worry about saving every month and giving extra time to calculate the same. You can do the same with one tap!

The Supremacy of Strategic Planning

You can use one of the most used savings tools, buckets, and boosters. You shall find visual clarity for your financial goals, categorize your earnings and funds, save for emergencies, add additional saving goals, and strategize every expense to create a smooth road for the future. 

Common Mistakes to Avoid

We understand that you are not an expert on savings and expense classification. Therefore, one could make numerous mistakes while trying to create the perfect financial path. Here is a list of common errors that people make that need avoidance!

Ignoring high-interest Debts

People often overlook the impact of high-interest debts and avoid repayment until the last hour. You need to understand that your credit card high-interest loans can hamper your saving ability effectively. You shall address your debt on priority and focus on investments and savings moving forward. 

Underestimating Retirement Needs

People make the mistake of underestimating their requirements after retirement. They do not plan and adjust their retirement savings goals, believing they’ll need the bare minimum. One needs to effectively assess their retirement needs and ensure its alignment with their financial targets.

Inability to Diversify 

People often habitually invest in single asset classes and not diversify their money. This mistake is commonly called overconcentration and can lead to high risks. Strategic planning with portfolio diversification can safeguard your savings, even with market fluctuations.

Wrap Up

This is your queue to prioritize your investment journey and start saving. 35 is a crucial age for you to achieve financial security and create financial goals for the future. Consider consulting a financial advisor or an expert to develop a plan tailored to your needs and well-being. Ensure that your finances and savings strategy are firmly in place without compromise.


How much to allocate for emergency funds?

It’s a good idea to have at least six months’ worth of expenses saved up for emergencies. This way, if you face a situation where you suddenly stop earning money or need funds for an unexpected situation, you’ll have a financial cushion to support yourself.

Is it too late to start saving at the age of 35?

It’s never too late to start saving, even at 35. Many people find themselves in a similar situation, unsure about how to begin saving and investing. The key is to start now with a solid strategy. By saving consistently, you can build a fund for your current needs and future goals.

How to effectively manage my budget?

To manage your budget effectively, it’s important to organize your earnings into different categories. Allocate portions of your income for regular expenses, healthcare, paying off debts, investments, and savings. By dividing your budget this way and sticking to your plan, you can ensure that you have enough funds for each area without overspending.

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Allan Moses

An editor and wordsmith by day, a singer and musician by night, Allan loves putting the fine in finesse with content curation. When he's not making dad jokes or having fun with puns, he's constantly looking to tell stories out of everything.


This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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