In 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.