Savings rate is always talked about in the Financial Independence / Early Retirement (FI/RE) space. It’s been written about time and time again, and everyone has a different thought on it. I had never sat down and calculated mine, so here goes.

My money is moving to multiple different investment accounts. I have my Fidelity 401k through work, a Optum HSA (Health Savings Account) through work, a Vanguard Roth IRA that is contributed to post-tax, I buy individual stocks through Robinhood, and a Vanguard taxable brokerage account that I put money in to save for a down payment on my next house. My income from work is $82,400 pre-tax, and is used for Savings Rate Calculations.

Note that these calculations do not include stock dividends, rent that my roommates provide to go towards my mortgage, or equity in my mortgage. This is my interpretation of a Savings Rate calculation.

My Savings Rate Calculation

• Fidelity 401k - I contribute 22% of my pay (as close to $18,500 as possible) and my employer contributes 7% = 29% * $82,400 = $23,896
• Optum HSA - I contribute the maximum allowed = $3,450/yr
• Vanguard Roth IRA - I contribute the maximum allowed, as I have extra money throughout the year = $5,500/yr
• Vanguard Taxable Brokerage - I add $50 week = $50 * 52 = $2,600/yr
• Robinhood Individual Stocks - I stopped with automatic contributions here, I still add about $100/mo = $100 * 12 = $1,200/yr Total Invested Per Year = $36,646 Divided by Salary = $36,646 / $82,400 = 44.5%

There you have it, almost a 45% savings rate. Considering the average savings rate in America was 3.1% at the time of writing, I think I’m saving pretty well. It is difficult when checking the pay stub from work, seeing your income, but then seeing almost half of your income directed to other accounts you can’t spend. I’m glad I got into the habit of not taking my entire paycheck to a bank account!