[nostrademons]

You're talking about monthly savings, not take-home pay, which is usually defined as cash compensation after taxes, retirement, and deductions (i.e. how much you "take home" from each paycheck). Take home - expenses = savings.

And yes, savings and savings rate is the biggest determinant in eventual net worth. I know bond traders and FAANG engineers that make $200K+/year and live paycheck to paycheck because their expenses eat up all of that and then some. One guy literally blew it all on hookers & blow and then died of a fentanyl OD. I also know people that saved about 1/3 of their take-home on a grad student or Whole Foods salary and are now living a reasonable life as a homeowning family despite never breaking $100K/year in income.