How much money should you have saved by the age of 30?

As you approach 30, many people begin to question whether their financial situation aligns with what they really expect from this stage of life. This is when the questions arise: Am I saving enough? Should I already have a significant financial cushion? Are my expenses excessive?

This decade marks the beginning of decisions that directly affect your financial future. It is the time when many question whether it's the right time to buy a house, invest, or start planning for retirement. However, it's also the time to answer other questions.

Is there an ideal savings target at 30?

This is one of the main questions people in their late 20s or early 30s might ask. And here we should mention that there is no single answer, although there are benchmarks that can guide you when it comes to your savings.

Here we draw on the insights of financial analyst Kimmie Green, who proposes a simple and progressive formula. It suggests that, by 30, you should aim to have saved at least the equivalent of one year's gross salary.

Let's take a simple practical example for this equation. Let’s assume you earn 25,000 euros a year. This should be your target savings by this age. From here, the formula continues growing with the years: by 35, you should have saved double your salary, by 40 triple, and so on.

What factors affect your saving capacity?

Having or not having the mentioned savings amount depends on many personal and structural factors. Some of the most relevant ones are:

• Cost of living - Living in big cities can imply higher fixed costs, making monthly savings more difficult.
• Employment situation - Job stability, extra income potential, and salary progression clearly make a difference.
• Debt level - Mortgages, personal loans, or student credits may limit savings.
• Financial education - Those who understand how to manage their money tend to better anticipate unforeseen events and make better investment decisions.

Keys to saving more and better

You may not have reached the recommended savings threshold. Don't worry, it’s never too late to improve your financial situation. Some effective practices you can implement to improve your situation are:

• Create a monthly budget - Knowing exactly how much you earn and how much you spend is the first step in controlling your finances.
• Automate your savings - Transfer a portion of your income to savings automatically each month. If you don’t see it, you won’t spend it.
• Set realistic goals - Saving 100 euros per month consistently for five years is significant progress, even if it doesn’t seem like it.
• Invest wisely - Keeping money in a checking account is not profitable. Therefore, there are safe and profitable alternatives, like crowdlending.

Investment alternatives for young profiles

Investing is not just for experts nor for those with large sums of money. At Inversa, we believe that anyone can start investing with affordable amounts and low risk. Our crowdlending platform allows you to invest in invoices from real companies, diversifying your portfolio and earning competitive returns.

This form of investment lets you put your savings to work without requiring advanced financial knowledge or high capital. With short terms, transparent tracking, and control over your portfolio, this tool is ideal for those starting to build financial independence from the age of 30.

What happens if I have nothing saved by 30?

It’s possible that you haven’t reached the recommended target by 30, but this shouldn’t cause frustration. Every situation is different, and the most important thing is to act as soon as the doubt arises in your mind: now. Instead of comparing your situation to standards, what matters is making decisions that bring you closer to your financial well-being. Planning, automating, and finding efficient investment options are key steps to achieving this.

Investing simply, safely, and with tangible impact is possible. If you want to get started, you can explore how our collaborative investment platform works and discover other ways to responsibly invest your money at Inversa.