Personal Savings Rate: The 🔑 to Building Net Worth

Nishant Deshpande
2 min readJan 5, 2022

The personal savings rate is the most important personal finance metric that NO ONE seems to know. Does it have to do with how much you invest? Or the interest rates on your bank accounts? Nope. Simply put, the personal savings rate is the percentage of your disposable income left every month after spending and paying taxes. Think of it as your personal profit margin! If you make more money than you spend, you’ll have a positive rate. Maintaining a high personal savings rate is the fast track to building net worth. Below is how your personal savings rate is shown and calculated on Investii!

So how can you increase it? Simple: spend less money than you make. In fact, focusing on your personal savings rate can make budgeting way easier. Budgeting apps tell you to set a limit for dining, rent, entertainment, etc, and then make you feel bad if you go over it. With the personal savings rate, all that matters is that you spend less than you make. If you move money to savings, investments, or retirement, good for you! It doesn’t negatively impact your savings rate so keep stacking money away. Building your net worth starts with having a positive savings rate. Get to it!

Curious to know your personal savings rate? Create an account at https://www.investii.com/ and find out!

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Nishant Deshpande

Founder and CEO at Investii | Finance and Tech Enthusiast | Milwaukee Native | “The brave might die young but the cautious may never live”