You’re 25 (or close to it) and someone mentioned you should have a certain amount saved. Now you’re doing the mental math and wondering if you’re behind.
Take a breath. According to the Federal Reserve’s 2022 Survey of Consumer Finances, the median bank account balance for those under 35 is $5,400. That includes checking, savings, money market and brokerage cash accounts. In other words: Most 25-year-olds aren’t sitting on a mountain of savings.
When it comes to savings, here’s what you actually need to know.
Key Takeaways
- Most experts recommend saving around $20,000 by age 25, but the realistic median is much lower.
- Building a 3-to-6-month emergency fund is the most important savings priority at this age.
- Small, consistent habits now pay off big later thanks to compound interest.
- Side hustles can help close the gap when your income feels tight.
How much should I have saved by 25?
Most financial experts point to around $20,000 as the ideal target. That figure comes from the Federal Reserve’s data on average balances for Americans under 35, but keep in mind that averages get skewed by high earners. The more realistic middle-ground is that $5,400 median.
The honest answer: Anywhere between $5,000 and $20,000 puts you in a reasonable range. If you’re below that, you’re not alone. Entry-level salaries, student loans and rising rent make saving genuinely hard in your mid-20s. The goal isn’t to hit a specific number by a specific birthday. It’s to build the habit.
What should I prioritize at 25?
Build an emergency fund first
Before anything else, aim to save three to six months of living expenses. Multiply your monthly essential spending by three to six—that’s your target.
Your emergency fund is your financial cushion for job loss, car repairs or other unexpected bills.
Save 10%–20% of your income
Most experts suggest allocating at least 10% of your income to savings in your 20s. Can’t hit that yet? Start with whatever you can and increase it as your income grows. The habit matters as much as the amount.
Start retirement contributions now
Every dollar you invest at 25 has decades to compound. If your employer offers a 401(k) match, contribute at least enough to capture it—that’s essentially free money. A Roth IRA is another great option if you’re in a lower tax bracket now.
Learn more about different types of investment accounts in this beginner’s guide to investing.
What if I’m behind?
Automate your savings
Set up automatic transfers to savings on payday. Even $25 or $50 a week adds up to $1,300–$2,600 a year—without thinking about it.
Pay off high-interest debt first
Credit card debt at 20%+ interest wipes out savings progress. Pay your high-interest debt off before focusing heavily on saving. Once it’s gone, redirect those payments straight to savings.
Pick up a side hustle
If your income feels like a ceiling, extra money from a side hustle can go directly into savings without touching your paycheck.
Platforms like KashKick let you earn real cash in your spare time—playing mobile games, taking surveys and claiming deals. There’s no complicated points system: $1 Kash = $1 USD. Once you reach $10, you can cash out through PayPal or Venmo.
One KashKick member, Kayla, earned more than $1,200 in less than two years by playing games and earning KashBack. For someone building an emergency fund, that kind of side income makes a real dent.
👉 Sign up for KashKick for free and start earning.
Where to keep your savings
- High-yield savings account: Best for your emergency fund. You’ll earn more interest while keeping money accessible.
- 401(k) or Roth IRA: Best for retirement. Tax advantages let your money grow faster.
- Separate savings buckets: Keep different goals in separate accounts so you don’t raid your emergency fund for non-emergencies.
For more options, explore the best places to save money.
The bottom line
Ideally, you’ll want around $20,000 saved by 25—but most people aren’t there, and that’s okay. What matters more than hitting a number is building habits: automating savings, capturing your employer match and finding ways to earn extra money when you can.
Compound interest rewards consistency over time. Start now, even small and your future self will thank you.
Sign up for KashKick today and start earning real cash toward your savings goals.
FAQs: How much money should I have saved by 25?
Is $10,000 saved at 25 good?
Yes—$10,000 at 25 is solid. The median bank account balance across for those under 35 is $5,400, so you’re ahead of most of your cohorts. Keep the habit going.
What if I have no savings at 25?
Start now, even small. Set up an automatic transfer to a savings account and look for ways to boost your income. KashKick is a low-barrier option—sign up free and earn cash from your phone through games, surveys and deals.
How much should I be saving each month at 25?
Most experts recommend 10% of your income. On a $40,000 salary, that’s roughly $333 a month. If that’s not realistic yet, start with less and increase it over time.
Should I save or pay off debt first?
Tackle high-interest debt (like credit cards) first—paying that down is effectively a guaranteed return equal to the interest rate. Once it’s handled, build your emergency fund and capture any employer 401(k) match.
