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Savings Rate

How fast you are moving forward.


Savings Rate measures how much of your available resources you are utilizing to get your time back as a percentage.

Essentially, Savings Rate tells you how fast you are progressing.


Savings Rate formula


  • After-tax take home pay is what gets deposited into your checking account.
  • The higher your Savings Rate, the better.
  • You won't make any serious progress until you can sustain a 50% Savings Rate.

    This will be your initial target.

  • Savings Rate works exactly the same regardless of Income or Net Worth!

How long it will take to reach FI using different Savings Rates has a great calculator that will tell you how long it will take you to reach FI at different Savings Rates.

Average American Savings Rate

The average Savings Rate in America can be found at the Federal Reserve Economic Data website.

Savings Rate Graph

The spike from COVID appears to have died down and we have returned to the historical average.

Historical American Savings Rate

Note that the historical avergage hovers around 10%.

Know Your Numbers!

Do you know your current savings rate?

If not, figure it out.

Increase your Savings Rate