How much money should you really have saved? | Personal finance

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The average wedding costs $ 19,000. While you can receive great gifts from friends and family, don’t expect to recoup the cost of your special day.

The average family spends $ 12,000 to $ 14,000 a year on their children, and newborns are even more expensive. If you don’t have additional savings for child-related expenses, your financial plan may suffer in other ways.

Depending on your plans, you may want to dramatically increase your cash savings in your 30s to pay for those big expenses. During this time, you should be making regular contributions to your retirement savings and investments.

At age 35, aim to save 1.25 to twice your salary for retirement; and by the time you’re 40, you should have saved two to 3.5 times.

41 to 50

You will enter your peak income years in your forties and fifties, and this is an opportunity to boost your savings. Most of your big expenses will be behind you, with the possible exception of paying for your children’s college education.

College tuition fees are getting more and more expensive every year. You may be able to get a state tax deduction by saving in a 529 plan. And be sure to apply for financial assistance. Even if you have a large balance in your retirement accounts or a large equity in your home, the FAFSA does not count them as assets, so you may still be eligible for assistance.


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