Savings Rate
BudgetingGlossary term
Definition
The percentage of income that is saved or invested rather than spent. Calculated by dividing total savings by total income. A higher savings rate accelerates progress toward financial goals and financial independence.
Related terms
- Pay Yourself FirstA budgeting philosophy where you prioritize saving and investing by automatically directing a portion of income to savings before paying any other bills or expenses. This approach ensures saving happens consistently regardless of spending habits.
- FIRE MovementFinancial Independence, Retire Early is a lifestyle movement focused on extreme saving and investing to achieve financial independence and optional retirement well before the traditional age of 65. Adherents typically save 50-70% of their income.
- BudgetA financial plan that outlines expected income and expenses over a specific period. Creating and following a budget is essential for managing money and achieving financial goals.
By the numbers
What the data says
- 2025
24%
US adults with no emergency savings at all
Only 46% could cover three months of expenses
Source: Bankrate, Annual Emergency Savings Report - 2024 survey, published May 2025
63%
Adults who could cover a $400 emergency expense with cash or its equivalent
Unchanged from the two previous years
Source: Federal Reserve, Economic Well-Being of US Households in 2024 - August 2025
4.1%
US personal saving rate as a share of disposable income
Source: Bureau of Economic Analysis, Personal Income and Outlays
National figures from the sources shown, as of the period on each card. They are context, not a forecast or advice for your situation.
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