The Importance of a Savings Rate

The Importance of a Savings Rate

The Importance of a Savings Rate

People used budgets to figure out how much they were to save. I started to do the same, and at the end of the month see how much was left over after spending.

What I didn’t realize was that the Savings Rate was one of the most important things I should have been looking at.

Your savings rate is a percentage of your take-home pay that is used for savings.

What is a savings rate?

A Facebook post that sparked my interest.

A Facebook post that sparked my interest.

A Facebook post that sparked my interest.

Going through my Facebook feed, I came across a post that asked “Who here puts 15% towards their retirement accounts? We try, but it is an ideal and goal.”

The Simple Math for a Savings Rate

There were a couple assumptions that would go along with the numbers that we need to consider.

Pay Yourself First

Pay Yourself First

Pay Yourself First

Pay Yourself First

Pay Yourself First

Pay Yourself First

The way this works is you determine how much you want to save, automate it into a savings account or retirement account before it hits your bank account, and then you can spend the rest.

People may say “How can you save more than 15% of your pay?” It is time to cut expenses.

How we save money:

Swipe Up to learn more about  The Importance of a Savings Rate

Swipe Up to learn more about  The Importance of a Savings Rate