Definition
Savings Rate
The percentage of your income you keep instead of spend.
Your savings rate is the share of your take-home pay that goes to savings and investments rather than spending. Saving $600 out of $3,000 a month is a 20 percent savings rate.
It is one of the best predictors of long-term financial progress, more than income alone. A high earner with a low savings rate just has expensive spending; a modest earner with a high savings rate quietly builds wealth.