How to Calculate What Percentage of Your Income / Money you Have Saved

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In 1993, the average American's savings was 5.9 % of disposable income, according to MSN Money. In 2003, it was a sad 1.3 %. Where does your family fall on that scale and what can you do to improve it?

Things You'll Need

  • Calculator
  • Write down your average annual income.

  • Multiply it by the number of years you have worked. This is the total amount you have earned.

  • Divide the amount in your personal savings by the total amount you have earned. You now have your percentage of income saved.

  • Three ways to help you save more of your money: Pay yourself first. A standard rule of thumb is to save 10% of your income. Second -- You should have three accounts. An emergency fund that should have at least three months of your salary in it, a short-term savings for purchases that you used to put on credit cards (because you won't need those anymore), and a long-term savings account for college and retirement (it can be a fund of some kind). Third -- Make it automatic! If you put your payment to yourself on an automatic billing cycle like your other bills it'll come out and start adding up and you won't even have time to miss it.

Tips & Warnings

  • It's not how much you earn ... it's how much you keep!
  • Cut up all buy one credit card. Use it for emergencies only.
  • Keep a journal of everything you spend.
  • Set a time goal for yourself to achieve a specific amount in your savings.
  • Always consult a professional if you have questions.
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