Wondering how much you should have saved up by the time you reach 25 or 30? There’s no single clearinghouse for the answer to this question, especially as so many people in this age group have no savings at all—only student loan debt, car loans, and a mortgage.
But if you are free and clear of those obligations, how much should you sock away for a rainy day? Good question. According to personal finance blog Wisebread
Just looking at the math, it’s clear that a perfect 20-something who could afford to maximize retirement contributions starting at age 22 could theoretically have $188,000 set aside by their 30th birthday, not including interest. ($18,000 x 8 = $144,000 and $5,500 x 8 = $44,000.)
Sadly, just because we all know what we should be doing does not mean that we are doing it. And few of us earn enough at 22 (or heck, even 29!) to contribute the full $18,000 yearly max to a 401(k). (Full disclosure: I am the daughter of a financial planner, and I did not make a single contribution toward my retirement until I was 27.)
So there you have it—try to contribute to a 401k, rainy day fund savings account, or perhaps… begin saving in gold.
Those who save in gold often enjoy a considerable gain against their local currency over a long enough time horizon. For example, the 10 year change of the price of gold in US Dollars is nearly 100%… meaning you’d have almost 100% more purchasing power had you put your money into gold coins or bullion bars a decade ago, as opposed to leaving it in a bank account or under your mattress.
The 10 year return on gold is even more significant against the Euro (125%) and the Russian Ruble (379%). Gold is also up significantly against the Chinese yuan (64%).
For more than 5,000 years, people from all walks of life have recognized gold as a currency and as a store of value for the long term.
Although saving in gold won’t make you rich overnight, it does provide a stable and easily trackable way to set aside some of your earnings or paycheck every month… until one day you may be surprised to see you have set away quite the gold hoard for a rainy day. Even if you are a little older than 25 or 30 by the time you get to your savings goal.
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My objective is to share with you my views on gold, which in recent decades has become one of the world’s most misunderstood asset classes. This low level of knowledge about gold creates a wonderful opportunity and competitive edge to everyone who truly understands gold and money.
