Savings rate
Share of income you save. The lever that matters most early on.
Where it is explained in full
Whole life insurance: what it is, who uses it, and the arithmetic nobody shows you. A life insurance policy that also holds a savings account inside it. It is sold to almost everyone and it fits a few people well. This page explains how it works and how to tell which you are, and it never tells you what to buy.
The health savings account: three tax breaks and one gate. The account people describe with the most excitement and understand the least. It does something no other account does, and there is a gate in front of it that many people cannot walk through.
A definition says what a thing is; it never says whether it fits you. The guides explain how it works and name the professional who confirms it for a particular person. The No Advice Disclosure.
Words beside it
- Burn rate
Cash leaving a business each month net of cash coming in.
- Cap rate
A rental property's yearly net operating income divided by its price. A quick measure of return before borrowing.
- Compound annual growth rate (CAGR)
The steady yearly rate that would turn a starting value into an ending value over a period.
- corporate bond
A loan you give directly to a company instead of a government, and the company promises to pay you back with interest over a set period of time.
- coupon rate
A coupon rate is the percentage of interest a bond pays you each year based on its face value. For example if a bond has a face value of one thousand dollars and a coupon rate of five percent, you receive fifty dollars per year in interest payments.
- Discount rate
The return you demand to accept future money today; higher rate, lower present value.
- health savings account
A special bank account the government allows you to open so you can save money specifically for medical costs and get tax benefits while doing it.
- High yield savings account
A savings account paying a competitive rate, usually online.
Ask about Savings rate
A model reads this page and answers from it. It will say when the answer is not on the page. Education, not personalized advice.