Our savings rate is low, it’s 3%. This month our extra debt payments is 54% of our take home pay. We’re hoping to keep it up or even go higher. In a few years when our massive student loan debt and minivan are done we’ll be able to up the savings rate.
I’ve finally updated our numbers for 2016 and we saved 56% using gross and 76% using net. This is slightly lower than last year.
Looking at numbers from my 2018, I’m firmly in the 45-50% savings rate range. Though, if you count contributions made by my employer to my defined benefit plan from my work, it slightly crosses the 50% range.
Is it safe to assume we don’t count payroll taxes (like Social Security and Medicare) toward our savings rate? I can see an argument either way.
90% savings rate
But it’s because we live like hobos and have higher than usual income so it’s not exactly a feat. The one time savings rate doesn’t work well…I like the FIRE score by Green Swan.
Whatever is left over…
Gross or Net?
We owe probably ~40-45% to the tax man, so that maxes our gross out at 55-60%…
That said, we’re probably saving ~50% of gross, factoring in that massive tax bill.
My own saving rate is 50%. From my gross salary I usually try to save this amount for future. However, i go to spend a large amount from that portion, whenever it is required. For example, one month I save Rs. 10,000 from my salary and next month I am required to buy a smartphone, of Rs. 15,000, then of course I will use my savings. So if I talk about my overall savings, it gives me the average of 50% annually.
According to this calculation, it should be lower than 50%, but the reason it is high just because of my investment habits. I just earn average 11.67% from my investment habits. I usually prefer to invest in Fixed Deposit, Mutual Fund and EPF. If I talk about return rate, from FD it is 7%, From mutual Fund I usually get around 20% and 8% from EPF scheme. So when count the average of all, it becomes 11.67%. So I would prefer that everyone should encourage the habits of investment choosing long term or short-term investment options to achieve your finance goals. from your personal savings. It always maintain a level of expenditure.
I think the savings rate of everyone depends on many factors, especially the economic situation of a certain country you live. Our rate is varied and depends on the extra money which we receive from time to time and spending we do. But still, it doesn’t exceed 25% in average from both incomes. We do plan how to increase the saving percentage and hope next year it will be the doubled rate.
I’ve not yet closed year 2018 numbers but we’re between 74% and 75% Saving Rate.
Very proud of it!
My wife and I just calculated our savings rate for the first time as a couple. 30%. Our goal is too see if we can steadily increase it throughout 2019.
Interesting! Sounds like a lot of people are citing their savings off of gross, not net, right? My husband and I are at ~40% of net income.
It sounds like you are at the typical American savings rate. Don’t feel bad. At least you recognize the need to pay off debt and invest in your future.
You will get there!
Currently it is 39% of gross based on my paycheck. I never had a fixed savings rate. This level gets you to FI in 17 years and is similar to a 50% net savings at my tax rates. I actually invest more since I reinvest all dividends, rent, interest, etc which could boost my savings rate overall if I counted that in this calculation:
About 50% during my working years. Now about 20%
2018 was 38% savings, 33% taxes and 29% spending based on gross income.
This does not include paying down mortgage principal or 401k contributions by our employers.
50% of net income while you worked? You are retired now? That all worked out well for you?
38% is ideal in my opinion. You are rocking it! That is awesome. You are exponentially rocketing towards financial freedom.
Thanks! I sure hope so.
86%! Doing pretty well but a lot of it is because of high income.
Probably very bad, I need to save money than spending it.