By Stas Bekman.
Published: 16 July 2006
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.