How Much Should You Actually Have Saved by Age 33? A Reality Check on the $100K Goal

The question haunts many young professionals: By the time you reach 33, how much should you have accumulated in savings? According to venture capitalist Kevin O’Leary, the answer is clear — $100,000 is the benchmark figure you should be targeting, assuming you begin your savings journey a decade earlier at age 23.

The Math Behind the Goal

Let’s strip away the intimidation factor. The median salary for someone in their early 20s hovers around $37,024 annually. While this might feel modest, O’Leary’s formula is surprisingly accessible: save 20% of your paycheck and let compound growth work its magic at a realistic 5-7% annual return.

Breaking this down, if you’re earning that median income and commit to saving $600+ monthly, here’s what the numbers reveal. Using a 6% compound interest rate (well below the stock market’s historical 10% average), putting aside $617 each month for a decade would accumulate to approximately $102,236 by age 33. The compound effect becomes even more dramatic over longer timeframes — extend that investment another decade, and you’re looking at $287,122 by age 43.

How To Free Up 20% of Your Income

The biggest objection isn’t mathematical — it’s behavioral. Where does the extra $600-700 monthly come from? O’Leary’s suggestion: eliminate discretionary purchases and redirect that capital toward investment accounts. For those with flexibility in living arrangements (sharing housing costs or remaining with family during early career years), this threshold becomes achievable.

Alternatively, adding a side income stream of $1,000+ monthly accelerates the timeline significantly. This approach transforms the equation: aggressive savers can hit their six-figure milestone much sooner than 33.

Beyond Stock Market Returns

Your $100K doesn’t have to live in stock portfolios. Employer-sponsored 401(k) plans typically deliver 5-8% annual returns, and when employer matching is factored in, you only need to contribute slightly above $300 per paycheck to reach the target. This makes the goal even more attainable for employed individuals with benefits packages.

The Compounding Advantage Over Time

Here’s where the analysis becomes compelling: assuming consistent 20% savings rates as your career advances and salary increases, that cumulative wealth accelerates exponentially. Someone earning above the median in their demographic reaches $100K even faster. Fast-forward to traditional retirement age around 63, and disciplined savers following this model would have accumulated over $1.2 million.

The framework is simple but demands discipline — you’re essentially answering the fundamental question of what you should have saved by your thirties and then committing to the system that gets you there.