How Much Money Should Millennials Have When They Reach The Age of 30?


Millennials have had a complicated time building wealth. The Great Recession started in 2007 landed just as Millenials were beginning to graduate high school and college.

A college education itself represented a financial problem for many millennials. The cost of going to college skyrocketed in the years that they were attending school. Student debt is one of the most significant debt sources, and the average millennial owes nearly $30,000

In many ways, the economy had not fully recovered when the coronavirus pandemic set off another major crisis. Once again, many millennials lost their jobs, savings, or both in years considered crucial for career building.

Millennials will need savings to retire, but as they approach 30, most don’t have any idea if they’re behind. In this short guide, we’ll look at how much millennials need to save by 30, and what kind of practices will take them there.

First, we’ll look at how well most millennials are doing right now.

How well are millennials doing at saving?

If you’re a millennial, it can help if you understand where you are compared to other members of your generation. Simultaneously, the average amount of savings isn’t necessarily an indication of where millennials should be. 

Several recent polls have shined a light on the current savings habits of millennials.

As you can see, the results are all over the place. If you have anything at all, you may be ahead of almost half of the people who came up in the same generation. Now, we’re going to look at what you need to have “enough.”

How much do I need in savings?

You need to save as much as you’ll need to maintain the same lifestyle you held during your working life. It’s important to remember that your costs may not be the same during both periods. You may be dealing with extra expenses, for example:

  • ● More travel (now that you have the time)
  • ● Higher medical expenses
  • ● Assisted care, or services to cover home-keeping and yardwork.

However, it’s also possible that your expenses could go down. If you plan, you may be able to control your costs by:

  • ● Downsizing your home or vehicle
  • ● Spending less on experiences that you don’t enjoy as much, anymore
  • ● Take advantage of senior discounts and programs

Now, let’s take a look at how much you’ll need to save, depending on your goals. 

How much saving does it take to retire?

If you’re 30 years old, and you plan to retire at 65, the table below will give you an idea of how much you need to start saving each month. These calculations assume that:

  • ● You intend to keep the same amount of income after you retire.
  • ● You don’t have any savings yet.
  • ● You expect an annual return of at least 5% on your investments.  
IncomeAvg. Amount to save per month

This table doesn’t apply to everybody, because no two people share the same financial situation. Some people already have a significant amount of savings at 30. Others can rely on a substantial inheritance from elderly relatives, and others may plan not to retire at all.

Furthermore, most people have not reached the peak of their earning potential at age 30. For both men and women, earning potential increases significantly after the age of 35. If you are comfortable with your lifestyle at 30, you may be able to contribute far more to your savings in just a few short years.

There are many ways that you can improve your chances of being in a good position. Next, we’ll cover some of the ways that you can save more effectively as a 30-year-old. 

How can I save more effectively? 

Some financial practices can bring you a lot closer to your goals of saving enough for retirement. Consider the following: 

  • Begin keeping a budget if you haven’t already: A budget will help you categorize your funds and determine where you need to make changes. It will help you figure out where your savings will come from. 
  • Start setting financial goals: Setting long-term goals is how you test your ability to meet them. These goals will help you identify where you’re falling short of saving and help you figure out where to cut back, or whether you need another income stream.
  • Shop to save: Purchase items at the lowest price you can buy them. Prepare food at home instead of going out to eat. Hold off on major purchases until you can purchase the items on sale. 
  • Take your health more seriously: 30 is the age to begin taking your health a lot more seriously. Health is typically one of the largest expenses you’ll face as you age, and you can save a lot by making healthy choices. Cut down on fast food, alcohol, smoking, and other major risk factors.  
  • Seek out a financial mentor: If you know someone in your life who has already achieved your financial goals, ask if they’ll accept you as a mentee. Go to them when you need advice, and let them fill in the blanks when you can’t find advice for your specific challenges.

Get started on your savings plan today

Saving for retirement is a serious goal, and most millennials will face severe obstacles to getting there. However, you now know how much progress most millennials have made toward achieving that goal.

You also know how much you’ll need to save, and which practices will help you achieve your financial goals. 

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