Following the discussion with @TeaCup in the other tread:
How do you calculate your savings rate in Switzerland? Specifically:
- What is your denominator: Gross or net salary?
- Income taxes: Reducing your denominator (income), or part of expenses?
- Second pillar contribution: Considered as both income and expense or not at all?
- This older thread seems to trend towards not including them
- Assets: Are you including bought assets (e.g. a new car) as part of your expenses?
- Anything else to be considered?
My calculation: [Savings + acquired non-financial assets] / [Net income + second pillar contributions – income taxes] = Savings Rate %
Or if you track expenses it would be: [Net income + second pillar - income taxes - expenses] / [Net income + second pillar - income taxes] = SR%
Background: I have a high savings rate according to my approach, but that might be deceptive given I probably have the most inflationary method. I also have been challenged on this in the past too. My view is that this figure best represents my savings vs my actual spend. Meaning that if I reach a 50% saving rate calculated this way, I have used half my available income and saved enough for another entire year.