375 | What is Savings Rate and How to Calculate It?
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How to Calculate a 36 % Savings Rate
Jonathan: In this case, we just have to fix the denominator. So if you funded a pretext retirement account, like a four o one k, and you maxit output, that's being included in the 30 thousand dollars that they're counting for savings. But we need to add that back to their takom pay down in the denominators. And so that math is going to bring you back down from that lofty forty eight % that we said in scenario too but it's still more than senaria one. It's a 36 % savings rate in this case. We want to stop there for people who are looking for additional nuance.
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