The U.S. Personal Savings Rate is Plummeting. But Yours Should be Rising.

Long-time readers here know that personal savings rate is one of my favorite personal finance metrics (along with safe withdrawal rate, crossover point, net worth, and “usable net worth”, to name a few). No other metric is as apt at diagnosing your current “personal business” of household cash flow management. In its simplest form, Personal savings rate (over a specified period of time) = net savings (or losses) / total income If you can boost your personal savings rate up to high enough levels, you can start to make some crazy fast progress in paying down debts or saving for...

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