Every Cent Counts

Savings ratio is the proportion of income the individual sets aside as savings for the future. Savings can be used for children’s education funding, future retirement goals etc. You should save a minimum of 10% of your gross income. Most Asians are able to save more than 10% as we have been taught to be savers since many of our parents were migrants who suffered through World War 2. They were very thrifty to the point of being misers which the younger generations could not understand.

Savings Ratio = Monthly Savings divided by your monthly gross income from all sources