Your "Big Raise": How To Save Money
The Big Boss beams down from above. "I'm a
changed man -- I'm ordering that all my employees receive an
immediate hefty raise!" he enthuses.|
"I like the new Ebenezer" you say in stunned amazement.
"What are you giving me?"
"Nothing -- it's something you'll give yourself" he weasels.
"A penny saved is a penny earned" was Ben Franklin's famous
saying -- but he was only half right. Why?
Because whatever you earn gets taxed in many different
ways: federal income taxes, the social security tax and
state income taxes -- before you even spend it! And
when the money's actually spent, Americans pay sales tax
almost everywhere. And after your purchases, you
still get hit with a property tax on your home, car license fees
on your car, and capital gains taxes on your investments.
And then there are the hidden taxes. The government
taxes merchants in many ways that you may not even know about --
care to guess whether those merchants pass the cost on to
you? If you were a landlord would you allow the property
tax to erase your profits, or might you pass most of it on to
A "penny earned" dwindles to less than a half-pence after taxes,
so any money you save is really worth about twice as
much! Happily, there are four common-sense principles that
you can use to save money and virtually give yourself a big
|1. ||Resist buying stuff that you don't need.|
|2. ||Use less of what you do need.|
|3. ||Buy needed goods at lower prices.|
|4. ||Use credit cards that will pay some of your money back.|
Here are some easy tips that you can apply to the first three of
these principles, so you'll have more money and more free time
for optimal enjoyment of your life:
|1. ||Waiting or "wish list." Instead of
buying something you want right away, make it a rule to wait a
week whenever possible. Oftentimes it won't seem worthwhile
then, or maybe in the meantime you'll think of something even
better to buy.|
2. ||Working-time cost. When
you're thinking of buying something, ask yourself how long you
would have to work to earn the money to purchase it. Is it
worth that much time? |
3. ||Price checking. Can you buy
it for less online (perhaps at eBay), or pre-owned, or from
classified ads? Could you rent or borrow it instead?
4. ||Save receipts. Put them in
a box and after a month look back on what you bought. What
purchases weren't really worth it?|
5. ||Expense projection.
Estimate each of your monthly expenses, then project how much you
could save over the coming years by lowering or eliminating
them. Thinking in terms of five-year periods can give you
a new perspective.|
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