*Sigh*. I’ll see how I get by with an SR of 47% for the next few months. Damn I thought I was being frugal. But no. I am still being disgustingly profligate 😉

And some people are on a 75% SR!! I had respeck for them anyway but I now have even more new found respeck for them.

Thanks again for helping me see the light.

]]>Not sure if you can just add the percentages like that because it depends on what you are spending. It is easier to think of it in absolute terms I find.

So lets say your total wages are £1000, your pension cont. presumably will be 160 and employers cont. 50 so £210.

Let’s say your Net wages are around £700 which is about 30% for tax and NI, ballpark enough for this simple example.

So your savings rate from the net is ~22% which means you saved £154 and spent £546.

So let’s plug all that into the formula from my other post:

Total savings = £210 + £154 = £364

Total savings + total expenses = £910

SR = £364 / £910 = 40%

See it’s a little bit out, maybe that’s because my estimate for taxes will be slightly out but I get the feeling that you can’t just call the percentages for post and pre tax savings as equivalent and so you are best to just plug the real amounts into the formula and then see what the real answer is.

Hope that helps 🙂

]]>So am I right in seeing it this way..?

From my gross my employer’s pension contribution is 5% and mine is now 16%. Easy for me to add these two together, 21%! 😁

From the net my savings currently amount to 21.83%.

I’m calling that nearly 43%.

So another 7.17% of savings from my net comes to 50%.

So can I claim that as an SR of 50%?

Cheers.

]]>Yes, recognising my employer’s pension contribution as actual income helps. It was sort of invisible to me until I recently.

Thanks!

]]>See my post here if you want to find a simple formula for it (you can skip all of the ramble as that may confuse you and just scroll down to the final formula at the end). Any questions on it, just give me a shout.

http://thefirestarter.co.uk/calculating-savings-rate/

Cheers!

]]>It’s tricky for me to work out (I’ve no head for numbers!) as my pension deductions come from my gross salary and my own savings are from my net income so I think that percentage is right.

So if including my employer’s pension contribution isn’t cheating I’ve only got to save a couple of hundred quid more to reach 50%. I’ll see how I get by over the next few months.

Thanks for the motivation!

]]>