Start setting aside cash for your long-term goals, big-ticket items and the proverbial rainy day. » How to check your personal savings rate. Tally all of your after-tax monthly income, including salary, government benefits (such as Social Security), and interest and dividend income. That’s your disposable income.
Subtract from that number all of your expenditures — housing payments, utilities, food, entertainment and so on — to find out how much money you have left at the end of the month. Divide that number by your disposable income and multiply by 100 to find your personal savings rate.
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