According to the BEA (Bureau of Economic Analysis – U.S. Department of Commerce), the personal savings rate in March 2010 (latest statistics) was under 4%!. The personal savings rate is the percent of disposable personal income (after taxes) that is saved. I really thought it would be higher because of the poor economic times, but then again, with 10% unemployment, that is a lot of people not saving.
Unlike the BEA, I calculate my personal savings rate based on gross wages (not disposable income, i.e. after taxes). I do this because (1) it is easier! (2) I won’t know about my true taxes until after I file – I always owe the state more money and the Federal usually owes me. But I do know what my gross earnings are.
Right now, my savings rate is 15.2%, including retirement saving. Not including retirement, my savings rate is 7.2%. I would like to get both higher. I should be saving around 10% for retirement, and my non-retirement savings need a boost (especially after deleting my emergency fund!).
How does your personal savings rate compare to the national average? Is there anything you are doing to increase your savings? Let us know!
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I just did the calculations and I am able to save 28-46% of my gross salary including savings and retirement depending on the month. I do not make a lot of money and do not consider myself frugal. I could be saving alot more.
Good for you! I’ve been slowly increasing my savings rate, but I am not where I want to be yet. But I am getting closer!
Thought you might find this interesting. It is the personal savings rate by country for the last 20 years. http://econ365.files.wordpress.com/2008/10/gross-savings-rate.pdf
“Save like the Irish” should be our new national mantra.
Wow! Great chart. So sad to see the U.S. savings rate at only 1.2%! No wonder we are in trouble. Just about any other country has a better savings rate. I guess we haven’t learned yet!