Author Topic: Hypothetical savings rate?  (Read 2206 times)

Baylor3217

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Hypothetical savings rate?
« on: August 24, 2013, 01:02:22 PM »
Assuming the following hypothetical, what would the savings rate be?

Monthly
Gross: $10,000
401k contributions: $1900

Net take home: $6000

Expenses: $2000


$300 interest earned monthly on savings

What other info do you need?  I'd like to prototype my math to ensure I'm calculating correctly.

Inquizator

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Re: Hypothetical savings rate?
« Reply #1 on: August 24, 2013, 01:11:50 PM »
I'd calculate ($4000 savings + $1900 401k) / ($6000 net income + $1900 401k) = 74.7%

Some people do things a little different, but I have chosen to use net pay and add 401k contributions to both sides of the equation. I also ignore interest gained by my 'stache.

KMMK

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Re: Hypothetical savings rate?
« Reply #2 on: August 24, 2013, 01:36:55 PM »
I'd calculate ($4000 savings + $1900 401k) / ($6000 net income + $1900 401k) = 74.7%

Some people do things a little different, but I have chosen to use net pay and add 401k contributions to both sides of the equation. I also ignore interest gained by my 'stache.

That's how I do it as well.

icefr

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Re: Hypothetical savings rate?
« Reply #3 on: August 24, 2013, 04:08:30 PM »
What other info do you need?  I'd like to prototype my math to ensure I'm calculating correctly.

I agree with other posters, but the most important part is that you use the same formula each year so that you can compare the data.