Do you struggle understanding how to calculate your savings rate at a moment’s notice?
This app is for you.
It assumes you have 4 bank accounts:
1. Business Checking
2. Business Tax
3. Personal Savings
4. Personal Expense
With this app, you can know exactly how to get money from your Business Checking account into your Personal Expense account, and do it while targeting a specific Net Savings Rate. Just fill in any 2 of the fields and it will fill in the rest.
(Did you know? Net Savings Rate is the strongest influence on when you can retire. A combined savings rate of 74% will let you retire in 7.5 years, even if you start from $0.)
TARGET SAVINGS RATE – This is the percentage of your net pay that ends up in your savings account.
GROSS INCOME – This is the full amount you wish you withdraw from the Business Checking account
EXPENSE ACCOUNT – This is the amount you will deposit into your Personal Expense account. You’ll use this account to pay all of your bills.
SAVINGS ACCOUNT – This is the amount you will deposit into your Personal Savings account. This is post-tax money. You may invest as you wish.
TAX ACCOUNT – This is the amount you need to transfer to your tax account to cover 100% of your tax liabilities. (This version is hard-coded at 40%, which is a little higher than you need. Future versions will allow you to configure your tax rate.)