How Much Income You Need To Save (By EVERY Age)
Here's EXACTLY how much you need saved by every age, the average incomes from your 20's, 30's, 40's, and 50's – and how you can retire with as little as $416 per month. Enjoy! Add me on Instagram: GPStephan | PROMOTIONAL OFFER: Get FREE Fractional Shares when you sign up and make a deposit using my paid affiliate link for WeBull:
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AGE 20: Average Net Worth: -$31,571
1. GET A CREDIT CARD
The point is to begin building up your credit score as soon as possible, since 50% of your score is made up from your on-time payment history and how LONG you’ve had credit for.
2. OPEN A ROTH IRA
This will allow you to invest $7000 per year and grow your money COMPLETELY TAX-FREE by the age of 59 – meaning, by the time you’re older, everything is pure profit.
3. SAVE 20% OF YOUR INCOME
4. INVEST IN THE MARKETS
AGE 30: Average Net Worth: $42,339
1. GET A CREDIT SCORE OF AT LEAST 750
2. BE BAD-DEBT FREE BY 30 YEARS OLD
This means you’ve paid off any loans or debt that’s above a 5%-6% interest rate, you don’t have any credit card debt or personal loans outstanding, and besides the possibility of a low-interest rate mortgage or student loan…you don’t have anything weighing you down.
3. HAVE A 3-6 MONTH SAFETY FUND
4. AIM FOR 1X YOUR SALARY SAVED
AGE 40: Median Net Worth: $90,000
Average Net Worth: $319,000
1. MAX OUT RETIREMENT ACCOUNTS ANNUALLY
2. MAXIMIZE YOUR EARNINGS
3. HAVE A BUDGET – NO MATTER WAHT
4. KNOW HOW MUCH YOU NEED TO RETIRE
The rule of thumb is that, for a 30-year retirement, you’ll need to have anywhere between 25 to 30x your annual spending invested in order for that money to last you without running out.
AGE 50: Median Net Worth: $290,000
Average Net Worth: $1,300,000
1. HAVE 7-8X YOUR SALARY SAVED, OR 10-12X YOUR EXPENSES
2. BE CLOSE TO PAYING OFF YOUR MORTGAGE
3. HAVE A CLEAR PLAN FOR RETIREMENT
AGE 60: Median Net Worth: $490,000
Average Net Worth: $1,600,000
Top 1% Net Worth: $14,338,000
1. AIM FOR 10-12X YOUR SALARY SAVED UP
2. PAY OFF YOUR PRIMARY RESIDENCE
4. BEGIN WITHDRAWING FROM RETIREMENT ACCOUNTS
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-Here is a link containing the source material for each piece of research cited. I do my best to make my videos as accurate as I can, and the additional resources should help anyone who wants to look into them further – enjoy! https://docs.google.com/spreadsheets/d/15Sz6ZlMOT7tSijfstN_NdpAnvyiMigHJGPmHx6gNM68/edit?usp=sharing
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Hi
One of my friends is having so much trouble. She owns a home and has two roommates , and her mortgage is only $400 a month, but she can barely afford to pay her bills and buy food 😢
Ever since that old man took over the white house, nothing is affordable.😧
@@darlenedevegan7401Sleepy Joe 😂
I’m sorry, but you are adorable. hehe
Are you Scotty Kilmers son? He can stop moving his arms either 🤣
It helps retention 😅
@@GrahamStephanlol!
@@GrahamStephanstarts throwing hands everywhere to increase retention*
Thank you for teaching me financial literacy at 21 years old. I started watching you at 17 and now i can say I’m ahead financially because of you. You taught me how to be frugal and to watch what I spend. I will meet you and thank you in person ONE DAY!
Looking forward to it! Keep it up!
Keep saving and don’t buy too much in your 20s as it’s very easy to fall into bad habits at a young age. Your 30s are your 20s but with money and they’re way better but only if you set yourself up in such a way. Ignore hype culture (fancy clothes, Starbucks, new cars, jewelry, etc) I promise you as someone who escaped extreme poverty, it gets so sweet when you get to 30 and have no debt, savings, investments, and cash to burn.
I also like the financial habit/tactic of saving and investing until it hurts rather than a defined percentage. So you have very little left in your chequing account just enough for typical expenses.
That works super well!
I really appreciate the verbal table of contents in the beginning of every video ❤
You got it!
Your videos have truly changed my perspective on finances for the better. Thank you for all the valuable information!
You are so welcome!
Damn it I’m screwed I’m in my 30s and I don’t have what I should for my age bracket 😂
Regyapswealth
The literal second I turned 18 I had a roth opened. Best decision of my life!
Nice!!!
Congrats! That puts you ahead of 95% of your peers. You’ve got this!
@@rayzerot thank you for the encouragement! 😃
How long ago was that? How big is it now?
@person-ie1fe Good question!
My first payment was on March 1st, 2022.
I set up automatic depositing at the beginning of each month of $500.
So far, I contributed $12,000, and the net worth is currently $14,696.16.
I’m thinking about still contributing another thousand to last year, though.
these averages per age group are stupid low vs what you really need to live comfortably
Basically if you’re single, no kids, living with roommates (or owning a home and renting out rooms) you can afford to do this.
Hope you see this Graham. You are a genuine Youtuber, and I love your content as somebody in high school trying to be like you. Keep up the great work.
I appreciate that!
Learn the power of the snowball effect. I started out slow, slow, slow. Barely worth $100k in my early 40s. Just turned 60 and I’m worth $1.16 million. Fully intend to reach $2 million by 67 and then retire, but not claim Social Security until 70.
Last week on The Ramsey Show they were talking about how if you claim your social security as early as possible and invest it you’ll have way more than if you wait to claim it. I highly suggest you look into that!
@@AnonymousYTUserVery interesting take
10x your net worth in 20 years? How sway
From everything I’ve looked into, that isn’t really true. His assumptions are pretty optimistic and it would have to be invested in a risky portfolio at an age where you should be more conservative.
Dave is awesome at getting people out of debt. For most other things, it would greatly benefit people to do actual research and do their own math. There are a lot of variables that go into things like that and he’s very surface level most of the time.
The DEX is currently experiencing a major bug,
In a video I made, I explain how exchanging results in around x 7.
Thank you for all your great videos! I’ve been saving for years but didn’t start to plan for retirement until my late 30’s. I think because I realized my life was already more than halfway over and I was starting to see the finish line. I started making some aggressive investments in ETFs and videos like this one have made retirement SO much easier to plan. Keep it up!
Wow, I’m 21 and I am doing significantly better than my peers yet I felt I was so behind. Thank you for providing this information
Thank you Graham for enriching so many lives! 😊
Man, I wish someone did this research for expenses, because that is WAY more relevant than income.
Yeah I want to know how to save 20% when you make the median salary, have kids and childcare, and no partner earning.
Expenses are much more personalized than income. Graham talks a lot about coffee. But for most Americans, the issue is transportation. Many Americans have too much car in thier lives, buying new cars or even expensive old cars with car payments.
I’m 23 with a 116k net worth…I’ve made 50-65k since I was 19. I’m a mail carrier for the USPS and I work as many hours as they let me. I’m forever grateful I had parents that encouraged me to live at home rent free to save for the future. I now live in San Diego in my van being able to have fun with my money and still save and invest 30-40%. I’m doing this all for my future family!!! “Today is hard, tomorrow will be worst, but the day after tomorrow will be a sunshine”Patience, dedication, and consistency 🤘🏼
Doing a good job! I’m also 23 but only 50k net worth so far
I’m looking to apply with usps and get out of wildland firefighting. Would you be willing to share if you do city or rural, and if the hours are too much for you (can you do forty if wanted)? I can live frugally, but I can’t take the busy summer hours anymore.
@@mariah12809I do city and no the hours are not too much I’m taking of advantage of my young healthy body while I can I love being out in the sun getting my cardio in so I don’t have to do it at the gym and you’ll be doing long hours until you become a regular then you can choose to be on the overtime list or not. And the faster you work the earlier you get off (most of the time)
Hi Graham, I know you get a lot of comments under your videos, but I simply could not hold back on expressing my gratitude for your work on Youtube because you seriously changed my life. I started watching you at 17 and started setting myself up financially, putting as much money in a market weighted total world index fund ETF utilizing registered accounts, maximizing my credit score and points utilization and adopting a long term mindset on life in general. Im now way older and I’ll be starting soon my career in personal finance to preach those crucial steps while sharing my new found passion for personal finance. I’ll be forever grateful for the spark you gave me and changed my life for the better. I know you received some hate on Youtube but no one can steer from the fact that your tips and mindset are the gold standard to anyone starting in personnel finance. Wishing you a great day man.
Bought AMS94K at 0.88 each, couldn’t believe my eyes when I saw it soar past 1$.
Stop manipulating people to buy your crappy stock
Nice try
Wasn’t Alex Becker a private investor for Project AMS94K. It’s been killing it lately. Do you think it’s still got room to move.
Scammer