Your personal saving rate is the percentage of your income each month that you are able to save. If you earn $2,000 and you spend $1,500, than your saving rate is 25%. You are saving 25% of your money each month.
Personal finance experts will tell you that increasing your saving rate is the key to building your financial security over the long term. However, a recent post on the blog Get Rich Slowly argues that we change that advice slightly.
Rather than focus on increasing your saving rate, it is better for most people to focus on decreasing their spending rate. After all, the only way to save more for most people is to spend less. Read the full article to learn more.