When people say that they save a certain percent of their income, how do they generally figure that? Do they mean percent of their gross or net income? If I were to save 30% of my gross income, I'd save $24000/year, or $2000/month. I'd have to live on approximately $1600/month, which is less than my mortgage. If I were to save 30% of my net income, I'd save just under $13000, or $1083/month, and have to live on $2517. Or, I could figure that the approximately 10% of my gross income that goes to my pension plan is savings, and save 20% of my gross, or net...
I know people do this differently, it's just that I'm shocked when people say they save a high percentage, and wonder exactly how they figure it.