Hi Everyone,
I'm confident this question has been asked before, but I must know for myself. (and I can't find it yet in the forum). when I calculate my savings rate: I add the total deposited into all accounts, 401k, IRA, taxable, and 401k matching... to simplify the problem, let's use round numbers.
Gross Pay 100,000
Savings 45,000
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Savings Rate = 45%
is the right way to calculate savings rate at gross or net income? if I based it on net income, clearly I would have a higher savings rate, but what's considered the "right way" - this will give me a clearer picture of when I can retire...
thanks in advance,
Steve