SAVING RATE: HOW TO CALCULATE IT AND 3 WAYS TO INCREASE IT

When trying to grow your wealth; several factors come into play.

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Investment environment, interest rates, asset selection, risk adjusted returns of various asset classes, taxes, asset location and saving rate.

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Saving Rate is the percentage of income a person sets aside every year. The money does not need to be held in cash and can be used to buy income producing assets.

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Why Is Personal Saving Rate Important?

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How To Calculate Saving Rate?

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For example, if you earn $100,000 a year and pay $25,000 in taxes. Your Net Income = $100,000-$25,000 = $75,000 If your annual expenses are $50,000 then Your Saving Rate = $25,000/$75,000 = 33.33%

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SAVING RATE: HOW TO CALCULATE IT AND 3 WAYS TO INCREASE IT

When trying to grow your wealth; several factors come into play.

Investment environment, interest rates, asset selection, risk adjusted returns of various asset classes, taxes, asset location and saving rate.

Saving Rate is the percentage of income a person sets aside every year. The money does not need to be held in cash and can be used to buy income producing assets.

Why Is Personal Saving Rate Important?

The advantage of high Personal Saving Rate is that your expenses are low relative to income.

How To Calculate Saving Rate?

For example, if you earn $100,000 a year and pay $25,000 in taxes. Your Net Income = $100,000-$25,000 = $75,000 If your annual expenses are $50,000 then Your Saving Rate = $25,000/$75,000 = 33.33%

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