By Stas Bekman.

Published: 16 July 2006

A Penny Saved Is Two Pennies Earned

Benjamin Franklin said: "If you know how to spend less than you get, you have the philosopher's stone."

Since most likely you are paying quite a lot of taxes, medical care coverage and other goodies government charges you, and which are tied to the amount you earn, chances are that each penny that you save is equivalent to 2 pennies earned. Because after all those deductions, you get only about half of any extra money you earn. So if you were offered a promotion of $5,000, in reality you are probably going to see only $2,500. However if you manage to save about $7 a day, in a year time you will save the same $2,500 without any promotions (365*$6=$2,555). And this money is already after tax.

Related Articles

1. Ask and You Shall Receive
2. Can You Shrink Your Bills?
3. Don't Let These Mistakes in Bills and Receipts Cost You Money
4. Do you Compare Prices Before You Buy?
5. Can you Really Save Money with Saving Accounts?
6. How the Envelope Money Saving System Works

Share and Enjoy

Tags

money savings, penny saved