Understanding Your Savings Rate: Are You Average, Healthy, or Wealth-Building?

A key element of wealth creation and achieving financial independence is your savings rate. 

Average savings rate in the US: 4.40%*

Healthy savings rate: 20%

Aggressive wealth building: 30% or higher

The beginning of a new year is an ideal time to evaluate your budget, reduce unnecessary expenses, and set your savings goals for 2025. After committing to a savings plan, it's equally important to allocate those funds to the right account types and investments for success.

*The Bureau of Economic Analysis November 2024