How much should Australians have in their savings accounts by age
This story first appeared on news.com.au. Click here to read the full article >
Since the pandemic shook things up for everyone across the country, a finance expert has revealed how much money you should have in savings.
With the past 12 months shaking things up for everyone across the country, one thing has been on our minds: saving money.
But how much should we strive to have in the bank depending on our age?
Money educator and finance expert Vanessa Stoykov said every Australian should be prioritising saving money right now.
She said it’s simple to figure out how much money you should have in your savings account and it doesn’t need to be complicated.
“Where many go wrong is thinking it’s difficult to calculate how much they need to save, but it’s not,” Ms Stoykov told news.com.au.
She said people under 35 should aim to have at least three months’ salary saved in the bank, and people over 35 should aim to stretch it to six months’ salary.
“Simply look over your last few bank statements to work out how much you are earning and spending each month, and use that as a guide,” she explained.
“Make sure that you have 3 to 6 times your monthly spending cost saved in a separate account depending on your age.”
Based on research from Finder, the average Australian has $28,426 in savings, and when it comes to age groups the average person has the below in a cash account:
Aged 56-74: $40,463
Aged 40-55: $34,025
Aged 24-39: $22,532
Aged under 24: $10,568
Ms Stoykov told news.com.au that Australians need to be prioritising savings now more than ever after the year we’ve had.
“After the pandemic, and in the state the economy is in, savings are more important than ever,” she said.
“Having a nest egg that is easily accessible – unlike asset investments – and can be drawn quickly in case of emergency should be a priority for Aussies.”
Ms Stoykov stressed that it’s important to “change your mindset” around money and to “make sure future you is getting paid”, including prioritising superannuation.
“If you want to have a brighter financial future, you need…”
This story first appeared on news.com.au.
Click here to read the full article >