Americans are struggling to save. The median U.S. household currently has about $11,700 put away between bank accounts and retirement savings, according to a recent survey from MagnifyMoney. And young people have much less.
Millennials (defined here as those born between 1981 and 1998) hold only about $2,400 in median total savings. That's not going to get you very far, considering that experts say you should have at least three to six months' worth of living expenses in an emergency fund and also be on your way to saving $1 million for retirement.
To work toward shorter term goals like an emergency fund, or buying a home, and also make sure you'll be able to retire when you want to, the best thing you can do is to start saving early and take advantage of compound interest, in which any interest earned accrues interest on itself.
So, exactly how much should you have saved by the time you hit 30?