Your savings rate is how much of what you earn is not consumed. Raise it by earning more, spending less, or both. At national level, statisticians publish household or domestic savings rates that help explain investment capacity in the wider economy.

Key takeaways

  • A steady moderate rate beats rare heroic months followed by zero.
  • Automate transfers on payday so saving happens before discretionary spending.
  • Debt repayment is not identical to saving, but both improve net worth.
  • Compare rates on like for like income definitions.