AVERAGE SAVINGS BY AGE | Rule of Thumb - YouTube

In this video I'm going to show you my exact rule of thumb on how a benchmark my average

savings by age.

Stay tuned.

Welcome back.

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When it comes to savings.

Americans are falling short big time.

Nearly 70 percent of adults have less than a thousand dollars in their savings account.

Think about that for a second.

All it takes is a blown transmission a couple of flat tires.

I hate to say this again but someone getting sick or someone passing away boom that thousand

dollars is gone and you have zero dollars in savings retirement funds aren't doing much

better either.

They're actually shocking in my opinion.

About half of US families have zero dollars in retirement savings.

This means that people that are going into their golden years have no nest egg and they're

probably going to eat cat food or something because I don't know how they're going to

live off of government subsidies.

Social Security may not even be in existence to when I retire.

So that's why you need to start planning now.

People like to think that they'll save more when they make more.

But studies have shown time and time again the more you make the more you spend.

It's human nature.

Think about it when you start making more money or you come into more money whether

it's through gifts or through an inheritance.

What do you think to yourself oh I'm going to get the nice dinner I'm going to go to

the nicer restaurant I'm a buy the nicer car.

It's human nature guys.

If you're driving a Ford one day you want to be driving a Ferrari the next day when

you're sick of the Ferrari you want to switch to the Lambo you need to learn how to become

content and disciplined with your money.

And that's how you become an overall happier person.

The sooner you start saving the better because of compound interest you have time on your

side and your money actually starts to make money.

So with all this being said let's get into the rule of thumb for how much money you should

have saved at each age in your 20s you should aim to have a quarter of your overall gross

pay saved up.

So a quarter is 25 percent.

So for easy numbers let's assume that your gross pay is a hundred thousand dollars.

A hundred thousand dollars multiply by 25 percent is 25 grand.

This can be a combination of your 401k your Roth IRA your checking or your savings by

age 30 you should have the equivalent of your annual salary saved up by age 35.

You should have twice your annual salary saved up.

And the list just keeps going on and on like this.

I never said this was going to be hard but actually saying it and doing it are two completely

different things.

Let's move on.

By age 40 you need to have three times your salary saved.

Forty five.

Four times fifty five times.

So on and so forth every five years you multiply your salary by another time.

So ultimately by age 65 which is ideally retirement for most people you ship eight to 10 times

your annual salary save for retirement.

This means that you'll be well funded for the next 20 to 25 years.

And you know God willing you'll live till you're 100.

They should be able to last you over the next 25 to 30 years of retirement and make sure

that you're not mooching off for children or b being a burden to your children.

That's the worst possible thing you can be in retirement.

Ladies and gentlemen as being a burden on your children you need to be a blessing to

your children.

And that's it.

I know this video was very short and I know it was straight to the point.

But again it's very easy to say something and think Oh that's simple I'll be able to

do that rather than actually implementing it and having the discipline and the know

how to practice.

If you've got any value out of this video please comment.

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It really helps you guys.

I put in a lot of time and effort into these videos and I'm not asking for anything in

return.

I simply want to educate my friends my family and whoever else is watching these videos

on how to lead a healthier financial life.

Thank you so much.

And answer the question of the day below if you needed a dollar amount right now to retire.

What would that dollar amount be.

I look forward to hearing your comments.

Thank you and have a prosperous day.

What do I need for retirement?

One million dollars.