A Simplified  Look At The Savings Rate


Your savings rate is one of the most important financial measures at the beginning of your FIRE journey – even more important than your rate of return.

Your savings rate will help you make decisions. You can see how a specific financial decision will affect your savings rate over both the long term and the short term.

How To Calculate Your Savings Rate Savings / (Gross Income – Taxes)

Your savings rate is directly linked to your actions. So the higher your savings rate, the quicker you will be able to retire.

Increasing your savings rate can significantly decrease the amount of time you need to become financially independent and  retire early.