Households led by someone between the ages of 25 and 34 earn an average of $74,082 a year before taxes, according to the BLS's 2018 Consumer Expenditure Survey. At 23, I barely was able to keep $500 in the bank . However, I will tell you what I would do if I were you (even if in my answer I use “you”, I am still imagining what I would do). So why not go for $3k a year, which would put you at $38k by the time you're 30? Unless you have state taxes in IL, I'm not sure. But that doesn’t mean you should buy a car on a whim. If you’ve recently had car troubles and need a new one right away, you may not have as much time to save as someone who is just starting to think about buying a new or used car. T. Rowe Price says generally, most people should save at least 15% of their income each year in order to achieve savings benchmarks at each age. If the amount of money you're saving each month doesn't hurt, you are NOT saving enough. 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