You’ve Been Saving the Wrong Percentage of Your Income (Here’s Why) [jkrbWmcNAzL]
Most people have heard the advice: save 15% of your income for retirement. But what does that actually mean—and more importantly, are you measuring it the right way? In this video, we break down the difference between gross income vs. net income, and why that distinction can completely change how much you’re really saving. Because saving 15% of your income doesn’t always mean the same thing—and depending on how you calculate it, you could be saving significantly more than you think… or not enough to reach your long-term financial goals. Using real-world examples, we walk through how two households earning the same $100,000 income can have very different take-home pay, savings rates, and lifestyles—even when they’re following the exact same financial advice. We also explore how traditional vs. Roth retirement contributions impact your true savings rate, and why a 15% savings rate in a Roth account can feel closer to 17–18% in real life. You’ll learn: • The difference between gross income and net income (and why it matters) • How to calculate your true savings rate • Whether you should save 15% of gross income or net income • Why the 15% savings rule can be misleading • How taxes, state of residence, and filing status affect your take-home pay • The impact of 401(k), Roth IRA, and pre-tax vs. after-tax contributions • How to build a savings strategy that actually works for your lifestyle and long-term goals This video is designed to help you move beyond generic financial advice and build a personalized savings plan—one that balances long-term retirement planning with real-life cash flow, spending, and flexibility. Because at the end of the day, the goal isn’t just to follow a rule. It’s to create a financial plan you can actually stick with. 00:00 Intro: The Savings Rate Myth (Is 15% Gross or Net?) 01:03 The Foundation: Understanding the Difference Between Gross and Net 02:03 The Answer: Why Financial Pros Always Mean Gross Income 02:30 Why Gross is Used? The 3 Main Reasons 02:42 Reason 1: Standardizing the Math Across Millions of Households 04:21 Reason 2: The Pre-Tax Advantage (Traditional vs. Roth Effort Levels) 06:34 Reason 3: Consistency in Retirement Planning and Social Security 07:44 Where the Rule Breaks Down? Why You Don’t Live on Gross Income? 08:18 Texas vs. California: How Taxes Change Your Lived Experience 09:19 How to Apply This? 3 Steps to Pressure-Test Your Savings Rate 11:21 Closing: Why Personal Finance is Lived, Not Just Calculated 12:04 Bloopers Some of my favorite books: Camera & equipment I use: Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research. Join the family & subscribe to my channel here: Thanks for watching, I appreciate you!