A Penny Saved is More than a Penny Earned!

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:

{ 6 comments… read them below or add one }

1 Emily January 6, 2009 at 11:53 am

We have a tendency to forget this, don’t we? We get so used to paying the incidentals (taxes, gov’t programs, etc) that it just becomes meaningless. Thanks for reminding!

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2 Curtis January 6, 2009 at 5:15 pm

Of course, you can’t save pennies that you don’t earn. 😉

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3 LittlePeopleWealth January 6, 2009 at 11:52 pm

LOL – yep, you do have to earn them first!

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4 Tosha January 7, 2009 at 1:00 am

lol, thanks for this post:) It makes me feel better about quitting my job so I could focus more on saving money.

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5 LittlePeopleWealth January 8, 2009 at 4:44 am

You’re welcome 🙂 I’m glad you enjoyed it!

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6 Barbara January 24, 2009 at 3:36 pm

I just found your blog through the BeCentsAble Grocery Gathering. I love it and I love this post. I have featured the post on my blog with a link back.

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