Asked 2w ago
Need more information if $20k savings includes your 6mths emergency funds and your salary and tax bracket to determine whether achieving $100k at 30yo will be an easy feat or a difficult one for you. Most importantly, whether you need to pay back your tuition loan or your parents have kindly paid it full for you. (In this context, i'll assume you don't have a student loan to repay)
Assuming you have your emergency funds aside of $20k, and exclude all other living costs, insurances and taxes, saving $80k in 7years, which is abt $11.43k per year (barely even $1k/mth) is definitely possible, whichever industry you're working in assuming you're a graduate with a degree.
During the ages from 21-30, i think how much savings you have depends on your lifestyle as much as your salary.
Let's assume that you have $4k/mth salary. Saving $1k (25%) is not that hard because you're not paying house rent. If you're not a person who goes to club and spends $500 each wk in luxury good or monthly vacations to Bali, that should be achievable. And all these is without factoring in investing. If you invest another 25% of your salary ($1k) monthly, that will be an annual investment amount of $12k. If you manage to enjoy an annual return on investment of 7%, this $12k would turn into $19,270 at the end of 7years!
If you're a beginner in investing and willing to DCA monthly consistently for the next 7years, you can do your research and consider investing into a world diversified etf like IWDA, or if you believe US growth can still outgrow its performance the last 10y, go for VUSD/CSPX.
Wish you the best!
If you already found a way to save $10k per year, you will definitely be able to reach $100k in savings by the age of 30. At that rate, you wouldn't even need to invest actively to reach $100k; even safer options like deposit accounts could help you get there.
But if you are trying to increase $20k to $100k in 7 years, you would need to grow it by 26% per year, which will not be easy. Investing in the US stock market (which has had the best return historically) has earned about 8% per year over the long run.
Since you are young, having a preference towards growth assets like stock is likely the right way to go. However, the stock market is very frothy right now in my personal opinion. Take it slowly, be patient, learn about investing, and wait for the right opportunity to enter the market. Since you are young, you still have a lot of time to start when risk/reward is much better than it is now.
At young age, salary matters a lot more than investing.
If I am in your situation,
1) set aside safety net in some reliable products(about 6m-1y of your expenses), like singlife 2.5%/elastiq/dash easyearn.
2) invest in some 'effortless' product like robo-investment or ETF. Meanwhile, understand the market.
3) focus effort on job.
10% earn on 20k isnt worth very much effort compared to when you have 200k to put in investments.