Saving capacity
The amount a household can set aside after essential expenses and commitments.
Definition
The amount a household can set aside after essential expenses and commitments.
Why this concept matters
It helps build a sustainable roadmap rather than a theoretical goal.
What to watch
It changes with income, expenses and unexpected events and should be reviewed.
Simple example
With €2,500 of income and €2,150 of expenses, theoretical saving capacity is €350.
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