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A Dollar Saved
ImageA 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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