The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Baylor3217 on August 24, 2013, 01:02:22 PM
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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.
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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.
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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.
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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.