KJ: Similar to our post regarding the Fidelity study on savings targets to reach throughout your life, I came across an interesting JP Morgan chart that outlines what you should have saved at various checkpoints and salary levels. Basically, you find your current salary and current age, and find where they intersect. If the value is “1.5,” then that means you should have savings equal to one and a half times your salary. Without any more introduction, how do your savings compare?
This study focuses on your income (and not your expenses per se), but it’s equally important to focus on the expense side of things. Maybe you’re fortunate enough to be on the upper end of the chart, but if you’re living at an expense level well below your income, then chances are your target may be different. No chart or study is a substitute for good professional advice, and of course there are some limitations (in that just because you make a certain amount doesn’t mean you spend most (or all) of it…hopefully!), but it’s always interesting to do a status check and see if you seem to be on track and heading in the right direction. For those of us twenty-somethings, we’re kind of stuck using the minimum age, but it also just shows you may be ahead of the game if you’re planning so proactively to achieve these targets! If you’re not on track, what are you doing to get there?
- Are you on track?
What can you do to get (or stay) on track?
Tell us about what works for you.
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