I had written a lot of articles where I used the terms savings rate, or your level of savings and I think many readers may be confused about what savings rate mean and what goes into savings rate. So this article is to try and make sense of it. At the same time I will introduce 2 terms that we typically use in our articles: Your Savings RateYour Spending RateYour Personal Free Cash Flow With this, it will make my other articles more understandable. I would also go through some discussions so as to help you understand these 3 terms better. What is Your Spending Rate? For the majority of you, you have a day job that you earn income. Your income is made up of the portion where: You can touch andThe portion that you couldn’t. The portion that you couldn’t touch is the mandatory government pension plan...