I'm 25 Years Old. How Much Should I Have in Savings?

The quick answer? It's really a matter of what you spend.

It's not easy being a 25-year-old. You're sort of stuck in this limbo situation where you're supposed to be getting the hang of adulting, but you're still in the mindset of feeling like you're still in college.

Being 25 can also be challenging from a financial standpoint. You might have outstanding debt to pay off, whether it's a credit card balance or another type of loan. And your wages may not be much to write home about given your limited experience in the workforce.

Now, you may be wondering how much savings the typical 25-year-old should have. And the answer? Figuring out how much savings you need is more a matter of what you spend than how old you are.

You need protection from emergencies

The Federal Reserve reports that 32% of Americans could not cover a mere $400 expense out of their savings. In reality, you should have enough cash in the bank to cover three full months of essential living expenses at a minimum.

Here's the logic for that. Let's say you lose your job and you're not eligible for unemployment benefits due to not meeting the requirements. If you don't get any severance pay from your employer, you may have to live on your savings alone while you look for a new job. And it could end up taking at least three months to find a suitable role and complete the hiring process. So if you have enough money in savings to pay for three months of essential bills, you might manage to avoid debt if a layoff impacts you.

But job loss aside, you never know when you might incur an unexpected bill. Your car could run into issues that cost $800 to repair. Or, you might get stuck with a medical bill that costs you $400. Without money in savings, once again, you risk debt. So it's good to do what you can to build yourself an emergency fund.

To figure out what yours should look like, figure out what your essential bills are and how much they cost you. Let's say your essential expenses are:

• $600 in rent (because you share a living space with a roommate)
• $350 in car payments
• $100 in auto insurance
• $100 in gas
• $400 on groceries
• $100 on personal care
• $100 on healthcare
• $100 on utilities
• $100 for cellphone service
• $50 toward your credit card minimum

All told, that's $2,000 a month, which means you should really aim to have $6,000 in savings at least.

What if you don't have enough savings?

If you're 25, you may not have enough cash at your disposal to cover three full months of essential bills. And if so, don't beat yourself up. Now that you know what savings target to work toward, you can do your best to set aside extra money every month until your emergency fund is complete.

Of course, you may want to consider a side hustle to help yourself catch up on savings -- especially if your regular paycheck doesn't leave you with much wiggle room. It may not be the ideal way to spend your free time. But if you're 25, chances are, many of your friends are doing it, too.