So, you’re 21 and feeling like a failure because you haven’t saved $7,000 yet? Don’t worry, not everyone has the same opportunities or circumstances. Unexpected expenses can also drain your savings. The important thing is to start saving as soon as possible, even if it’s just a small amount each month. Create a budget, automate savings, cut back on expenses, and stay committed to your goals. Don’t give up, keep moving forward.
How Much Money Should You Have at 21?
By age 21, you might have heard that you should have saved at least $7,000. But what if you haven’t? Don’t worry, you’re not alone. It’s important to remember that everyone’s financial situation is different and there are many factors that can affect how much money you have saved at this age.
The Reality of Saving Money at 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 by the time you turn 21. But let’s be honest, not everyone has the opportunity to work full time at the age of 18 or 19. Some may choose to go to college or pursue other opportunities that may not provide a full-time income.
Furthermore, the cost of living varies depending on where you live. In some cities, the cost of living is much higher than others, which can make it more difficult to save money. And let’s not forget about unexpected expenses such as car repairs or medical bills that can quickly drain your savings account.
Why You Shouldn’t Be Discouraged
Just because you may not have saved $7,000 by age 21 doesn’t mean you’re not on the right track. The important thing is to start saving as soon as possible, even if it’s just a small amount each month. Every little bit counts and can add up over time.
It’s also important to remember that saving money is a journey, not a destination. You may face setbacks along the way, but the key is to stay committed to your goals and keep moving forward.
How to Start Saving Money
If you haven’t started saving money yet, now is the time to start. Here are some tips to help you get started:
- Create a budget: Determine your income and expenses and create a budget to help you track your spending.
- Automate your savings: Set up automatic transfers from your checking account to your savings account each month.
- Cut back on expenses: Look for ways to cut back on expenses such as eating out or buying coffee every day.
- Start small: Even if you can only save a small amount each month, it’s better than nothing. As your income increases, you can increase your savings.
While it’s true that 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, it’s important to remember that everyone’s financial situation is different. Don’t be discouraged if your savings are nowhere close to that number. The important thing is to start saving as soon as possible and stay committed to your goals. With time and dedication, you can achieve financial stability and security.
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