What do you count when figuring savings?

[resolution]

With all of the threads about percentage of savings, I was wondering what people generally count as their income and savings. Whenever I sit down and try to figure out my actual percentage I get bogged down in all the details of what is counted or not counted.

For example my employer matches my retirement contribution, so is that counted as part of my savings percent or is that just extra that isn't counted? If it is counted as a part of savings, is that then added into my gross to come up with the percent, or does my gross stay the same and the employer contribution is just the flat percent of my original gross?

If taxable investment income is just reinvested does that count as savings and income or is that not counted? What about rental income?

In general on these threads I tend to use our flat w2 income, and not count any investment, rental or self employment income. I go back and forth on whether I should count employer contributions. I was just wondering if other people did the same or if there were another method that most people used.

[cronewitch]

I count only my paycheck as income, gross pay. The amount I put into investments counts as savings. I don't count other income like from investments or profit sharing.

So if I earned 60K and invested 30K that would be a 50% saving rate, my numbers are a little lower I am attempting to save 3K a month now but will fail at least 2 months when I have property taxes. The only reason I can save near 50% is I have a roommate and money he gives me doesn't count. I am happy as long as I save more than 1/3 my income.

[dcmetrocrab]

Only my 401k and Roth IRA count for retirement savings. Any company match or bonus match is not figured in. For my "total" savings count, I count retirement, my after tax savings, and my semi long term savings such as house downpayment/EF. I don't count short term savings like my clothing, fun, travel, car maintenance savings.

[Knee Deep in Water Chloe]

This confuses me also.
I can't even explain my answer I'm so confused about it.
I guess I just want to say thanks for asking the question; I'm interested in people's answers.

[MN-Investor]

I usually just calculate a percentage of my DH's gross wages. It's what he earns that we have to live off of, but that we don't because the money is going instead into savings. It's basically new money added to investment accounts.

We have interest, dividends, and stock sales, but they are all just reinvested into their originating accounts. The money for the accounts came originally, for the most part, from wages and employer contributions.

[lynnerself]

I would use our gross salaries. Then for savings count all monies that WE put away (401k, deferred comp, IRA, regular savings etc).
I wound not count what other are saving for us (401k match or pension). Nor would I count dividends, investment income or interest. Those are investment returns.
We are at about 33%

[wodehouse]

I'm only able to put away about 25% of my gross income for retirement. And to me this is the key..."for retirement". In my mind this money is locked away, even though some of it is invested in regular acccounts that are not IRA, Roth, 401K, etc.

I do put away a considerable % otherwise, but to me this is "deferred consumption", which might be deferred until some time later in the year, or even until some year in the middle future. Some 18% for variable deferred consumption, such as fund for home repairs, household improvements, furniture, vacations, new car fund, car repairs, medical/dental/pet health, etc. Some of this may never be spent on what I have it earmarked for but it is there if/when I need it (and I can always move excess to other needs).

[souldoubt]

Using gross salary I count my 401K contributions, Roth IRA contributions and what I put into savings to figure my savings/investing rate. I don't count anything reinvested nor do I count the employer 401K match.

[telephus44]

I don't consider employer match or reinvested dividends. My reasoning is if I can't choose to spend it, then it doesn't count as money I've saved.

[runewell]

When I think savings, I think emergency fund, or basically how much could I write a check for in say two or three days once I turned liquid assets like stock into cash.
But savings could also mean what % of your paycheck is being tucked away for another day. I wouldn't add employer bonuses and contributions but that could be a separate quantity.

My total retirement contribution is 15%-24% of my gross income each year, depending on bonuses which I use to fund Roth IRAs.