When people think about managing their finances, they usually focus on two things: budgeting and spending. But there’s one metric that’s even more important—yet often overlooked: your savings rate.
Your savings rate tells you how much of your income you’re actually keeping. And unlike your budget, which is a plan, your savings rate reflects what’s really happening.
What Is a Savings Rate?
Your savings rate is the percentage of your income that you don’t spend. It’s calculated like this:
Savings Rate = (Income – Expenses) / Income
For example, if you earn $5,000/month and spend $4,000, your savings rate is 20%.
Why does this matter? Because the higher your savings rate, the faster you build wealth and the more flexibility you have in life. It’s the clearest indicator of financial momentum.
Why Most People Ignore It
There are a few reasons why most people don’t track their savings rate:
- They don’t know how
- It sounds complicated
- They assume if their bank balance isn’t negative, they’re doing okay
But here’s the truth: if you don’t track it, you can’t improve it.
Why Tracking Your Savings Rate Beats Budgeting
Budgets are helpful—but they’re also aspirational. A savings rate, on the other hand, is grounded in reality.
- Budget: What you plan to do
- Savings rate: What you actually did
That’s a big difference.
Tracking your savings rate shows you whether your financial plan is working. It holds you accountable and helps you course-correct quickly if things go off track.
How NetTrack Makes It Easy
NetTrack automatically calculates your savings rate by connecting to your real income and expense data. You don’t need spreadsheets or formulas. Just link your accounts and go.
With NetTrack, you’ll see:
- Monthly savings rate trends
- Year-to-date savings performance
- How changes in income or spending affect your trajectory
This insight is powerful. It helps you make smarter decisions with confidence.
What’s a Good Savings Rate?
There’s no one-size-fits-all answer, but here are some general benchmarks:
- 10% – Minimum target for most people
- 20% – Solid savings habit
- 30%+ – Aggressive wealth-building mode
Your personal goal might vary, but the key is tracking it consistently.
Start Tracking Your Savings Rate Today
If you want to build real wealth, you need to know your savings rate. It’s the heartbeat of your finances—and the simplest path to freedom.
NetTrack makes it effortless.
➡️ Create your free NetTrack account now and start measuring what matters most.