Savings rate

Your savings rate is the share of income that actually reaches your asset stock — measured by how much your balances grew, not by intentions. It is the valve on the whole money system, and at an early stage it out-muscles any yield optimization: widening it by ₱30k a month adds ₱360k a year, while +0.5% yield on ₱500k adds ₱2,500. Benchmark: the Money Guy Show’s financial-independence target is 25% of gross.

First used in: 0.2 · Your money as a system