Your Salary vs. Your Savings: Where Do You Stand?
Welcome back to Asking for a Friend! 💌 We were absolutely blown away by how much you loved our first deep dive, and this week, we’re tackling a juicy topic we all think about: SAVINGS!
Saving money sounds simple, but let’s be real—it’s so much easier said than done (especially when life keeps throwing unexpected expenses at us). The good news? Understanding how savings typically grow (or, let’s face it, sometimes stall) during different life stages can give you a fresh perspective and help you feel less alone on your journey.
So, let’s break it down and chat about how saving habits evolve as we age. Here’s what the data has to say, this data comes from 1739 entries: 👇
So, What Does This All Mean?
18-24 Years Old
Total Savings: $31,792
Median Savings: $23,000
Weekly Savings: $354
💸 This group is off to a stellar start! Even with limited income, they’re putting away a solid chunk of change. Many might benefit from lower living costs (hello, shared housing or staying with the ‘rents), which frees up cash to save. It’s proof that building good habits early really pays off.
25-34 Years Old
Total Savings: $46,433
Median Savings : $23,000
Weekly Savings: $382
🌟 With career growth often comes a bit more cash—and savings reflect that. While total savings grow nicely, weekly savings only nudge up slightly, likely because rent, groceries, and lifestyle upgrades start creeping in. It’s all about finding balance here!
35-44 Years Old
Total Savings: $50,930
Median savings: $21,000
Weekly Savings: $320
🏡 This phase is where things get real. Mortgages, childcare, and family expenses can eat into weekly savings, despite this being a peak earning time. Savings growth slows, but that’s normal—it’s all about survival mode and keeping long-term goals in sight.
45-54 Years Old
Total Savings: $48,828
Median Aavings: $25,000
Weekly Savings: $231
📉 Weekly savings dip even more as priorities shift—think supporting kids, paying down debt, and maintaining a comfortable lifestyle. While retirement might still feel far off, this is a good time to start thinking seriously about it (even if it feels like one more thing on the to-do list).
55-64 Years Old
Total Savings: $92,250
Median Savings: $92,250
Weekly Savings: $450
💪 Savings ramp up in a big way! With fewer financial responsibilities (like grown kids flying the nest), people can focus on building that retirement safety net. It’s inspiring to see how saving becomes a top priority at this stage.
What Can We learn From This?
Start Early to Build Momentum 💡
Early adulthood is the perfect time to build solid saving habits, like automating part of your paycheck. While average savings might seem high, the median savings (~$23,000 for 18-34) shows that most people are saving more modest amounts—proof that even small, consistent efforts add up.
Midlife is a Balancing Act 🔄
In your 30s and 40s, life gets hectic with mortgages, childcare, and rising expenses. The median savings (~$21,000-$25,000) reveals that many people feel the pinch, even during peak earning years. Don’t stress if savings slow down—focus on realistic goals and staying consistent.
Retirement Prep is Where It’s At 💰
By 55-64, the median savings jumps to $92,250, reflecting a shift toward serious retirement planning. This highlights the importance of prioritizing super contributions, cutting back on unnecessary expenses, and preparing for a future without regular income.
Why Focus on Median Savings? 📊
Unlike averages, which are skewed by high savers, the median gives a clearer picture of what most people are actually saving. It’s a great reminder that you’re not alone if your savings aren’t skyrocketing—what matters is progress, not perfection.
The Big Takeaway:
Start strong, stay steady through the busy years, and ramp up savings when it counts. Small steps over time will help you build financial security, no matter where you’re starting from! 💖
The easiest way to build your savings? Set it and forget it! Automating part of your paycheck to go straight into a high-interest savings account (or an investment account) every payday is chef’s kiss for your finances. It takes the mental effort out of saving and makes sure you’re prioritising your future—before lifestyle creep even has a chance to sneak in.
Not ready to save big? That’s totally okay! Start small—just $20 a week adds up to over $1,000 in a year. And as your income grows, you can slowly increase the amount. Automation is the ultimate hack for staying consistent, and consistency is where the magic happens for building long-term wealth.
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