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Net vs. Gross Income - How Much Should You Be Saving?

Money Guy Show

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How to Calculate Your Gross Income

If contributing to only Roth accounts, would my target be 20 to 25% of my net income instead of gross income? If it's still the gross income, then why? Can you talk about why you guys talk about percentages of gross over net? Brian: People like they want a game, I say game and that sounds negative. But when you shoot for that gross number, it's really, really easy; removes friction from calculating what you need to be saving.

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