A Penny Saved is Two Pennies Earned
Stumble It!
Digg It!
Tip It!
del.ico.us
FacebookIn his book The Only Investment Guide You’ll Ever Need (an excellent read, by the way), Andrew Tobias spends a chapter talking about the fact that, after you factor in state, federal, social security, and sales taxes, every dollar you earn is only worth about $0.50 (depending on your tax bracket). Thus, he argues that Ben Franklin had it wrong… If it a certain amount of income translates into half that much in terms of buying power, then a penny saved is much more than a penny earned. In fact, it’s worth upwards of $0.02 in extra earnings. So if you’re looking to improve your bottom line, think twice about those frivolous expenditures. It’s far more efficient to fix your finances by spending less as opposed to earning more.
Published on June 10th, 2005 - 4 Comments
Filed under: Saving & Investing
email this article
- bookmark it
About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
Related articles...
» One Year Ago This Week (June 4th – June 10th)» Save Money by Renting Out a Room
» How Much Does a Million Dollars Weigh? (Revisited)
» From the Archives (June 10th – June 16th)
» From the Archives (June 8th – July 5th)
» Stamp Prices Increase (Yet Again)
» The Definition of Overpaid
» Weekly Roundup – 08/25/06
Was this article useful? Please sign up to receive our content via e-mail:
Great deals...
Readers’ choice...
Recent articles...
- Effect of Foreclosure, Short Sale, and Bankruptcy on Your Credit Score
- DIY Garage Kayak Racks: Fast, Frugal, and Effective
- Lending Club $25 Bonus Reminder
- Coupons are a Waste?
- How to Save Money on Pet Care
- Best HSA Custodian?
- Considering a High Deductible Health Plan
- Pay Back the Homebuyer Tax Credit?
- How to Find a Good Deal
- How Much Does Your Debt Cost?
Recent comments...
- laura: I have a foreclosure on my credit from Jan 2007 and my FICO score...
- nickel: Ron: Good question, and I have no idea as to the answer. It could...
- Christina: While foreclosures wreck less havoc on the score than a bankruptcy (according to your...
- Ron: Why do you think those large mortgage lenders are switching over to Vantage? Does...
- XY: I wish they would have special checkouts for people who plan to use 5...
- Live for Improvement: Going vertical with storage is definately the way to go! You should see my garage...
- Jessica: Just do a google search and it should be pretty easy to find. ...
- Just J: I use many of these ideas weekly, we shop for a family of 6,...
Most talked about...
- Dave Ramsey is Bad at Math
- $8,000 Homebuyer Tax Credit
- Dish Network Customer Service SUCKS
- How to Claim the First-Time Homebuyer Tax Credit
- $15,000 Homebuyer Tax Credit
- Reduced Credit Limits? Share Your Experience
- Would the "Fair Tax" Gut the Economy?
- Tax Stimulus Rebate Payments to Start Early
- Pay Off Mortgage Early? Or Invest?
- The Best Online Savings Accounts (Updated!)
- Life's Too Short to Drink Cheap Beer
- $7500 First Time Homebuyer Tax Credit
Your article is very true.
But Benjamin Franklin was almost right. There where no federal income taxes or social security taxes on his time. As a matter of fact, federal income taxes would have been highly unlawfull.
Amendment 16 of 1913 (to the US Constitution) had to be made so that income taxes could become legal.
Comment by Jose Anes — Jun 13th 2005 @ 11:38 amAndrew Tobias deserves a lot of credit for having revised that book totally at least twice… unlike some financial-advice mavens who put the same anecdotes in three or four books.
Fun stuff, especially the earlier edition.
Comment by Todd Derscheid — Jun 14th 2005 @ 10:16 pm