 A dollar saved is like five
dollars earned. It takes more effort to earn back that one dollar than
you think. You have to work to earn the money, and while you are doing
that you have other expenses to deal with...
Expenses such as living expenses, travel to and from work, meals, recreation etc.
On top of that, you have to pay tax on your earnings. If you were in the 50% tax bracket, you would need to earn $2 to net $1.
Then
there is the net present value issue. If you had not saved the dollar,
there is a delay before you earn back the money. During that delay
period, you could have invested your dollar and it would be worth more.
Any
money you save is tax free. That is you don't pay tax on money you
already own, that you choose not to spend on other things.
So bottom line, save money rather than spend it on stuff you don't need.
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Savings
Written by 'Guest' on 2009-03-24 08:17:23
I love the one line tips such as 'every dollar saved is like five dollars earned'. Information like this puts dealing with money in perspective and will make me rethink all future purchases! | lhbxfugt
Written by 'Guest' on 2012-02-03 14:56:55
Superbly illuminating data here, tnhkas! |
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