savings - how much

There is no norm - it depends on so many different factors - e.g. your income, your current personal/financial situation, your short/medium/long term plans which need to be funded somehow etc. Perhaps if you post more details about your own situation people might be able to comment.
 
I'd be willing to bet the modal savings for a representative sample of 26 year olds is very low indeed.

If you google for [broken link removed] you'll get various ones telling you how wealthy you should be for your age and income level.

Clearly these are only for amusement value as they're based on population averages and don't really apply in any individual's case.
 
It all depends on your financial goal and how long you have to achieve it. If it’s financial freedom later in life you need to calculate want kind of pension or retirement fund you need and then work out how much you need to save each year towards it; if it’s buying a house in the next few years you need to save enough to cover the deposit, legal fees, insurance, etc. So it’s nothing to do with your age, it’s all to do with your short, medium and long term financial goals.
 
A lot of 26yr olds have no savings but a lot of debt. Some have had to borrow to do Post Grads etc & are still paying them off. The Irish are lucky as students in the UK & US have much heftier college fees.
Count yourself lucky if you have neither savings or debts. It's a great place to start.
Then, like PMU says think of what your own specific goals are. There's no one fit formula for everyone.
 
I have two siblings, one 26 who is loaded and the other 30 who spends money like its going out of fashion, so everyone is different really.
 
How loaded is that? Lots of assets accumulated and high income? Or just reasonable income and living within their means. Are they a "prodigious accumulator of wealth" at 26?
 
GeneralZod said:
How loaded is that? Lots of assets accumulated and high income? Or just reasonable income and living within their means. Are they a "prodigious accumulator of wealth" at 26?
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By loaded I really just mean a lot of money saved in various different accounts , not richard branson standards or 160k like mention earleir either
 
since i was a young wee lad! about 10 years of summer jobs then started working full time in 1999

pension and car also, no house
 
To be a so-called Prodigious Accumulator of Wealth at 26, you'd need to have a net worth of 5.2 times your annual salary (before tax, of course). Inherited wealth doesn't count, by the way, so subtract that.

(By the way, that formula is not based on any population averages, it's based on the book "The Millionaire Next Door")
 
How much of that 160k is capital appreciation achieved over the ten years and are you excluding pension savings from that total?

I assume you skipped 3rd level and went straight into work to be in such a good position early on.
 
Yes my pension is seperate to this, skipped college alrite :)

sorry whats capital appreciation?
 
ft5j60j said:
Yes my pension is seperate to this, skipped college alrite :)

sorry whats capital appreciation?
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You've done remarkably well all right without understanding capital appreciation!

110k on 21/03/06 increasing to
130k on 09/09/06 increasing to
145k on 06/06/2007 dropping to
130k in 08/08/2007 and then rising to
160k in less than a month ! - and you work in IT - I thought you were Rio Ferdinand :D.
I had no interest in savings in hard cash in my 20s, in fact I owed £60000 when I was 25 which was borrowings for the first commercial premises I ever bought ( many thought I was mad) - the rent roll from it is currently €52000 p.a.. I'm in my early forties now and am still borrowing for various projects - at the end of the day it's about net worth.
 
So I guess this thread is not so much about what level of savings somebody of 26 should have (a pointless question in my opinion) and more about people flaunting what they actually have?

Impressive data mining though demoivre! :)
 
So I guess this thread is not so much about what level of savings somebody of 26 should have (a pointless question in my opinion)
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I agree because it doesn't take account of the overall picture, which was the purpose of the example I used.

more about people flaunting what they actually have?
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That certainly wasn't my intention anyway - as I said already the purpose of the example was to show that because one didn't have much savings in one's twenties doesn't mean one doesn't have or isn't accumulating wealth - personally don't think owning one commercial premises would be a brag.... ...............unless it was Harrods .:D
 
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