Hey, don’t worry if you’re not close to having $7,000 saved up by the age of 21! While that may be the average for someone who has worked full-time for a year earning the median salary, there are many factors that can affect how much money you have saved. Don’t compare yourself to others, focus on building good financial habits that will benefit you in the long run. Keep reading to learn more.
How much money should you have at 21?
By age 21, assuming you have worked full time earning the median salary for the equivalent of a year, you should have saved a little more than $7,000. Read on to learn why you shouldn’t be discouraged if your savings are nowhere close to that number.
When we talk about money, it’s easy to get caught up in the numbers. We see headlines about young people who have saved tens of thousands of dollars by the time they’re 21, and we feel like we’re falling behind. But the truth is, everyone’s financial situation is different, and there’s no one-size-fits-all answer to how much money you should have at 21.
First of all, it’s important to remember that not everyone has the luxury of being able to work full time while they’re in school. Many students have to balance their studies with part-time jobs that pay minimum wage or less. And even if you are able to work full time, the median salary varies widely depending on your location, industry, and level of experience.
Secondly, there are a lot of expenses that come with being a young adult. You might be paying for rent, utilities, groceries, transportation, and student loans, not to mention the occasional night out with friends. It’s not easy to save money when you’re living paycheck to paycheck.
But just because you don’t have $7,000 in savings at 21 doesn’t mean you’re a failure. In fact, it’s perfectly normal to be in a different financial position than your peers. Everyone has different priorities and circumstances, and there’s no shame in that.
Instead of comparing yourself to others, focus on building good financial habits that will serve you well in the long run. Start by tracking your expenses and creating a budget that works for you. Look for ways to cut back on unnecessary spending, like eating out or buying clothes you don’t need. Consider opening a high-yield savings account and setting up automatic transfers from your checking account. And if you have any debt, make a plan to pay it off as soon as possible.
Remember, saving money is a marathon, not a sprint. It’s not about how much you have saved at any given moment, but rather the habits you develop over time. By making small changes to your spending and saving habits now, you’ll be setting yourself up for financial success in the future.
Don’t be discouraged if you don’t have $7,000 in savings at 21. Everyone’s financial situation is different, and there’s no one-size-fits-all answer to how much money you should have at any age. Instead of comparing yourself to others, focus on building good financial habits that will serve you well in the long run. By tracking your expenses, creating a budget, and looking for ways to save, you’ll be on the path to financial success.
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