If the last few crazy years have taught us anything about money, it’s that having some savings set aside is pretttyyy important.

But how much is actually enough for you? At your age? In your financial circumstances? Is $10,000 enough? Or $50,000? Or $100,000?!

So, if conversations about savings have got you more confused than trying to read War and Peace, you’re not alone.

‍Enter: The benchmarks

So comparing your financial progress to others can be a bit of a slippery slope, but it doesn’t hurt to peek over the fence occasionally. 

Now, of course personal circumstances play a big role when it comes to benchmarks. Everyone has their own relationship to money, and their own money story, and this can’t be downplayed.

But seeing where others are can inspire and motivate you to adjust your goals, up your game, or give yourself a pat on the back for being right where you need to be.

The average Australian has just over $30,000 in savings. For some people, this might sound like a lot, but keep in mind that this figure also includes outliers, like super cashed up boomers. 

In reality average savings varies significantly across age, income levels, and gender, which is why it’s hard to exactly work out suitable benchmarks, but we can get close.

So to keep things simple, we’ll use age as a benchmark to help you suss whether you’re on track or not.

Average savings by age

To bring some more data points into the picture, we’ve also looked at the average savings by age findings of Canstar in their customer surveys.

It’s worth noting that the figures in both the Finder and Canstar report are averages, not medians. 

That means it’s likely the number is skewed higher thanks to a small sample size of people with very high savings balances.

So do take these figures with a pinch of salt.

‍How much should I have in my savings?

These numbers might give you some idea of where you stand, and where your attention needs to be. 

But if your savings balance isn’t where you want it to be, don’t stress. It’s never too late to start saving.

If you’re just getting started in building your savings, a recommended initial goal is to save up at least three months worth of living expenses in your savings.

That way, if you’re hit with an unexpected job loss, or need to cough up for major car damage, you’ve got some funds to rely on.

Once you’ve built that emergency fund, you can then start working towards other saving goals, or even investing goals.

One final tip

Building savings of course starts with budgeting and setting goals based on your budget. 

But on top of that, you can also give yourself an instant savings win today by setting up a high-yield savings account (if you haven’t already).

It’s a sure shot way to save faster, that will take just 10 minutes out of your day.

These are savings accounts that offer significantly higher interest rates than traditional savings accounts.

Most high-yield savings accounts in Australia offer at least 5% interest. 

So, if your interest rate isn’t serving you, and you’re eager to get on top of your savings, getting yourself a high-yield savings account is one way to achieve your savings goals faster.