In this article I talk about saving rate of my family. I love saving money. It gives me some sort of internal sense of achievement mixed with the feeling of safety and security. My wife loves saving money much less than I do.
Definition of saving rate
Saving Rate means the percentage of earnings after TAX that a person saves every month or every year after spending.
What is the saving rate of my family?
We have always been saving most of our Net Income, around 80% over the last decade to be specific. I am quite happy about that number. For example, our saving rate in H1 of 2021 was 85.2% of our total Income After TAX. My family was DIOK (Double Income One Kid) at that time, but it has changed since we have two kids now.
Here is the summary of our Saving Rate from 2012 until 2023:
2012: 72% (Well, we have been religious money savers)
2013: 73%
2014: 68% (Do not remember exactly what happened here – we perhaps increased our spending to improve our living standard. By the way, this is what happens when you experiment with life inflation)
2015: 77% (Back to the saving game!)
2016: 75%
2017: 73%
2018: 91% (We were about to purchase our home, so yeah, saving rate was quite extreme. We lived in the suburbs of Shanghai in a very small studio apartment)
2019: 67% (Decorating our house reduced our saving capabilities a lot that year)
2020: 85%
2021: 85% (I am quite happy this year with anything above 80%)
2022: 88% (We continue saving at least 85% of our Income After TAX)
2023: 89% (We managed again to save over 80% of our Net Income from full-time jobs that pay salary and part-time jobs that pay wages)
All of the figures between 2024 and 2025 are quite accurate estimations:
2024: 90% (Do you also want to save 90% of your income? Check: Over 100 Money-Saving Tips to Boost Your Budget)
2025: 90%
On average, our saving rate between 2012 and 2024 is has been as high as 80% on average. It means that we were able to save 80% of our Income After TAX.
Ho do we manage to save so much money?
We constantly manage to save a big part of our monthly income by living below our means. I wrote an article with tips to help people save large amounts of money here: Over 100 Money-Saving Tips to Boost Your Budget.
What do we do with our savings?
We use our savings to acquire money-generating assets including: real estate, bank deposits, online business and stocks, in order to develop more passive income streams.
Saving money is important. But, remember about health
Health is wealth people say. I try to live healthy every day. It includes eating healthy food, avoiding activities that are harmful for the body, mind and soul, exercising regularly, avoiding stress, sleeping well, etc.
There are some really cool articles that I have written already about living a healthy lifestyle. Check them out in the HEALTHY LIVING section. I am not going to publish any more articles about healthy lifestyle these days. But, will come back to this section later on when I get older. I want to focus on building the business management-related content first to keep growing the readership.
Health is wealth my friends!
In summary, my wife and I easily manage to save approximately 80% of our Net Income on average year after year. We use all our savings to invest (acquire and grow) money-generating assets.
While almost all of our money being invested, we keep some hard cash that serves as Emergency Fund outside the banking system. It is just some petty money perhaps only around RMB20,000 (~USD$3,000).
