What is your savings rate?


My gross savings is right around 50%. Most of my travel is to visit friends and family so they aren’t as costly as experiential trips, but still take up a lot of time so that I feel busy. I don’t feel like I’m missing out, but that’s mostly because I personally would rather visit old friends in Austin instead of going on my own to Europe.


2015: 60.30% based on using the [Amount saved / Amount Gross Pay] x 100

2016: 65.03% (projected)

Question: Is it supposed to be on gross pay, or net pay? (Seems like there is a lot of discussion around this)




You could always ramp-up your savings rate, in order to determine if you really ARE missing out on awesome experiences, or not - just as an experiment on yourself.

For me / us, I don’t feel like we are in want for much of anything…I know that I can go out and buy &/or experience something; the choice comes down to my priorities, or exactly ‘how much’ I feel the need to spend on said experience.

Again, I don’t really ever feel deprived by having a higher savings rate, but that’s just one guy’s thought on the subject.



Lots of super-savers here!

We are saving about 20% to retirement, plus another 10%+ to our remaining debt (student loans).


Aiming to 70%, currently at 66%.


2016 looks like it will finish at 75% for me. Formula:

(investment contributions) / (take home pay + pre-tax contributions)


Last year I saved 62% of gross income. This year I am aiming at 70%.


If I calculate my net worth by dividing the change in my net worth by my net income to get my savings rate - I get almost 200% though?

example previous month change being 13,000 and net being 6900 (13,000/6900 = 1.88 or 188%)
Is this right?


Is some of the $13,000 employer match or pre-tax contributions deducted off the top of your income? Because those should be added to your net income number. Technically, any re-invested investment earnings should also be added to your denominator as well.

For me, the simplified method I mentioned works well because the bulk of my savings are coming out of my net income. If that’s not the case for you, it may not be the best way for you to calculate your savings rate.

Like I said, the method will probably change once my investment earnings start making up a nigger portion of my savings. Until then, this method tracks what I’m interested in measuring.


I think the answer really varies depending on income. I have a 75% savings rate but I still travel out of the country and go on trips every few months. The rest of the time when I am home I live a very frugal lifestyle but not so much so that I am crazy and reusing toilet paper. It sounds like you have some rather expensive experiences you enjoy - for me, it would be worth a lower savings rate if those things make you happy. Warning A very annoying and highly unpopular but totally fitting phrase coming up… You can’t take it with you when you’re gone! :slight_smile:


2014: 47%
2015: 29%
Not as high as some, but I do not live a particularly frugal life. That is intentional, I have nothing against frugality (I know it has helped many people here get out of debt and build a great financial firewall) but I get a good deal of pleasure from spending my money too! As long as we have the right balance…


My sentiments precisely!


Question re:savings rate. I have a rental property for which I pay a mortgage. Would I include my mortgage as part of my savings since its kind of saving? Thoughts?

Also, are we doing pre or post tax income?


I wouldn’t. There is no guarantee in real estate and the money is worth nothing until the house is sold. Your mortgage is considered debt…in my opinion at least. Again, I learned this the hard way! :slight_smile: If the rent covers the mortgage and there is more left over, what do you do with the excess? If you save it then that can be considered savings.

@PoF has a good formula here:


This is exactly where I am, budget as low as I’d like to comfortably go, little kids at home don’t really lend toward a lot of side hustle, and trying to pay down the mortgage! Good luck - 2020 is not far now!!


This year I managed to save about 22% of my gross income. The cost of living in my area is what makes it difficult for me to save much more.


Single guy, saving anywhere between 60%-70% after tax. Renting out an extra room on AirBnB definitely helped the savings rate! I’m almost living for free at my place which is nice but also quite a bit of extra work. I suppose it helps to live in a tourist friendly location like Vegas.


I save about 40-50% after tax.

I’d like to bump that up, but I’m supporting my mother and had some big health expenses in the last few years.


2015 was about 62% saved (in long term accounts).

2016 looks like it’s going to be about 57% (in long term accounts), but I am stockpiling more cash than usual for potential lifestyle changes in 2017.


Despite being a huge personal finance nerd since graduating college 8 years ago, I had never actually tracked my savings rate. I calculated it today and it was about 60% (including mortgage principal payments)!!! Granted this was an exceptionally good year income wise, but its good to know that I didn’t blow all my money.

Lots of areas to improve on in 2017 - especially eating out - eek!