I Calculate My Personal Savings Rate And You Should Too

Описание: Calculating your Personal Savings Rate is a simple but valuable calculation.
Savings/Net Income X100 = Your Personal Savings Rate
There is no right number.
Everyone's personal savings rate is different, and that's OK.
I use it as an indicator to make sure I am saving at least 33% of my income each and every month.
Ideally, I would like to increase my savings rate, and knowing what it is now helps me stay on track.
As our income increases, our expenses tend to as well. Knowing your personal savings rate will help keep your savings the same or increased if that is your goal.
Some of you may have smaller savings rate then you would like, increasing your income and decreasing your expenses will help free up some money for savings. Easier said then done, I know.
As far as my 33% is concerned, that's all I can afford to save right now. I need to increase my income and reign in some expenses in order to increase it.
I like this calculation because it is easy and the numbers tell it all. There's not a whole lot of room for interpretation.
Try calculating your personal savings rate monthly, especially if you have lofty savings goal. It will help keep you on track and help you make the right moves with your money.