Gross income (pretax) savings rate

[TJKansai]

Someone suggested a poll on this topic, and while a number of people have posted their savings rates in other threads, this poll will give us an easy place to view the data.

Mortgage payments for your primary residence will not count as savings. Logic being resale value of most residences in Japan is pretty hard to anticipate.

Also disregard dividend/cap gains income you may be reinvesting.

I am sure many people may "save" for future (pre-retirement) expenses such as travel, cars, kids or homes, but let's exclude those buckets here.

*Of course, if you are paying for private school for a couple kids, your savings rate is most likely way below it was before they were in school. If this is the case, how about putting in what your average savings rate is over time in order to make comparisons a little more even.

[mighty58]

Quite impressed that people are over 50%. Unless my math is off, that would mean a savings rate somewhere around the 75% mark in net income terms.

[AreTheyTheLemmings?]

As with the retirement nest egg target poll, the lack here of an "I don't know" option is a kick up my lazy arse.

[TJKansai]

As with the retirement nest egg target poll, the lack here of an "I don't know" option is a kick up my lazy arse.

About once a year my wife and I collect all our receipts for a month and see where we are. That, plus a careful look at the credit cards and automatic bank withdrawals gives us a pretty good idea.

[TJKansai]

Quite impressed that people are over 50%. Unless my math is off, that would mean a savings rate somewhere around the 75% mark in net income terms.

My guess there are a lot of people who are quite frugal AND have better-than-average incomes (perhaps two breadwinners).

When I was starting out, my annual income was 4 million, after taxes clearing around 250,000/month. Rent was just ¥40,000 which allowed me to save ¥100,000-150,000/month at that time. Then I got married and our income hit 6 million, but rent was still just ¥55,000, so we banked almost all the extra.

[jcherni]

Does the "pretax" condition give a better insight in this case?
(this is an honest question, not trying to diminish your effort or something)

I mean, I save 50% of my money after taxes, which for me means that I save half of the money I have available.
This seems to be a good result.

Calculating on pretax, this falls to 38%, but this number has no meaning for me (I mean, we don't really have much control of the taxes we pay).

[TJKansai]

Does the "pretax" condition give a better insight in this case?
(this is an honest question, not trying to diminish your effort or something)

I mean, I save 50% of my money after taxes, which for me means that I save half of the money I have available.
This seems to be a good result.

Calculating on pretax, this falls to 38%, but this number has no meaning for me (I mean, we don't really have much control of the taxes we pay).

Perhaps post-tax (and deductions) would be a bit more useful and accurate, but I figured it is a lot easier to take the pre-tax number.