Savings Rate

The percentage of your take-home pay that you save and invest rather than spend.

Your savings rate is the share of your after-tax income that you set aside. It is widely considered the most influential factor in how quickly someone can reach financial independence, because it both lowers spending and increases investing at the same time.

Examples

Saving $1,500 of a $5,000 monthly take-home pay is a 30% savings rate.

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Financial Independence Net Worth

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