Question 1

What is a good savings rate?

Accepted Answer

Financial advisors generally recommend saving at least 15-20% of your gross income, including any employer 401(k) match. The national average personal savings rate in the US hovers around 4-8%. If you're aiming for early retirement (FIRE), you'll want 25-50% or higher. The right number depends on your age, income, goals, and how much you like your job.

Question 2

How much should I save by age 30?

Accepted Answer

A common rule of thumb is to have 1x your annual salary saved by age 30. If you earn $60,000, aim to have $60,000 saved by 30. By 40, target 3x; by 50, target 6x; by 60, target 8x; and by 67, target 10x your annual salary. These are guidelines — starting earlier always helps, but starting late is still better than not starting.

Question 3

What is the 50/30/20 rule?

Accepted Answer

The 50/30/20 rule suggests spending 50% of after-tax income on needs (rent, food, insurance), 30% on wants (dining out, entertainment, travel), and 20% on savings and debt repayment. It's a solid starting framework, but many financial independence advocates push for higher savings rates — 30-50% — by aggressively reducing the 'wants' category.

Question 4

Does my employer 401(k) match count toward my savings rate?

Accepted Answer

Yes, your employer match absolutely counts. If you save 6% and your employer matches 3%, your effective savings rate is 9%. This is literally free money — if your employer offers a match and you're not contributing enough to get the full match, you're leaving part of your salary on the table.

Question 5

How does savings rate affect retirement age?

Accepted Answer

Savings rate is the single most important factor in determining when you can retire. At a 10% savings rate, you'll need to work about 51 years. At 20%, about 37 years. At 30%, about 28 years. At 50%, about 17 years. At 70%, about 8.5 years. This is because a higher savings rate simultaneously increases how fast your investments grow AND reduces how much you need to live on.

Savings Rate	Monthly	Balance at 65	vs Target
5%	$313	$1.07M	$-429,639
10%Your Target	$625	$1.61M	+$106.9K
15%	$938	$2.14M	+$643.4K
20%	$1,250	$2.68M	+$1.18M
25%	$1,563	$3.22M	+$1.72M
30%	$1,875	$3.75M	+$2.25M

How Much Should You Save?

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Getting There

Projected Growth at 9.3% Savings Rate

What If You Saved More (or Less)?

Year-by-Year Breakdown

Frequently Asked Questions

What is a good savings rate?

How much should I save by age 30?

What is the 50/30/20 rule?

Does my employer 401(k) match count toward my savings rate?

How does savings rate affect retirement age?

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