savings-rate

Vocabulary Word

Definition

Savings rate is the portion of income that is not spent, but saved for future use. You could see it as the portion of your paycheck you don't spend each month, but put into a savings account instead.

Examples in Different Contexts

For personal savings, the 'savings rate' is the portion of personal income that is saved rather than spent on consumption. A personal finance expert might recommend, 'Increasing your personal savings rate is one of the most effective ways to build wealth and ensure financial resilience.'

Practice Scenarios

Tech

Scenario:

We've seen substantial growth in our tech startup's revenue this quarter. It's time to decide how much of that we're going to funnel back into research and development.

Response:

Indeed, with our increased revenue it's crucial to decide on a healthy savings-rate for future development projects.

Business

Scenario:

Our current project is turning out to be more costly than we anticipated. We need to consider potential measures to protect our company's financial health.

Response:

You're right, we need to maintain a steady savings-rate to ride out these cost overruns. Let's reassess our expenses.