I’m sure you’ve heard the saying “A penny saved is a penny earned”, but it is wrong… a penny saved is more than a penny earned! Now for the sake of not splitting hairs, I am going to use $100 instead of a penny – but the premise is the same.
If you EARN $100 then you will have to pay 6.2% in social security tax, lets say that you are in the 25% federal tax bracket, and the average United States state/local tax is 10.1%. This means that for your hard work you will bring home $58.70 of your money.
If you SAVE $100 then you are not “charged” on any of it. Every bit of that savings is yours to keep.
So the next time you save those pennies, smile and remember that a penny saved is ALMOST TWICE a penny earned!
If you are looking for more ways to save than here are some places to start: