Friends That Invest

How Much Money to Save at Every Age

Sep 29, 2025
Discover the ideal savings benchmarks for each decade of life, from 1-2 months' expenses in your 20s to a goal of 10x your income by retirement age. Learn how to navigate lifestyle creep and the importance of automating your investments. Sim shares practical steps like utilizing employer matches and keeping separate accounts to simplify your savings strategy. With actionable insights, you can confidently prepare for a secure retirement, regardless of your starting point.
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ADVICE

Save A Small Emergency Fund Early

  • In your twenties, save one to two months of living costs as a baseline and three to six months for an A+ safety net.
  • Open a retirement account to grab employer match and start investing early to benefit long-term.
ANECDOTE

Windfall Spent On A Wedding

  • Sim recounts a waitress who used an insurance windfall to pay for an extravagant wedding that later ended in divorce.
  • The story shows that windfalls can be spent quickly and are better used to build long-term financial security.
ADVICE

Save One Year Of Salary In Your 30s

  • In your thirties aim to have saved or invested an amount equal to your annual salary by decade's end.
  • Use this income-relative target so the goal scales with your pay and stays realistic across earners.
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