For the following scenario: Make a list of things included in income
Make a list of things included as savings
Make a list of things that are not included as savings
Calculate the savings rate
Stephen has a gross annual salary of $65,000. He puts $1,000 in his 401(k) each month and $500 each month into his IRA. He pays $400 to his student loans, and his work gives him an annual bonus which is usually around $3,000. He pays $850 in rent each month. At the end of the month, he usually has about $200 more in his checking account than he had the previous month.