Monday, June 1, 2015

A Less Taxing Way to Save

You pay taxes on the money you earn but NOT on the money you save = More money in your pocket for your effort.

Let us say you need to find an extra $400 this month to meet an unplanned for and unexpected expense.  At first glance the best idea may seem to be to work extra and earn the needed money.  Or, if you are retired, withdraw extra from the retirement pot to cover the expense.

But lets think about this from another point of view.

For the purposes of not overly taxing my math midget mind, let us say you are lucky or unlucky enough to be paid $20 per hour for your extra hours at work.  Once you consider taxes, again to save my midget mind say you are in the 25% tax bracket, you would need to earn just over $533 to clear that $400 after taxes.  That means you would need to work almost 27 extra hours to earn the money you need and of those 27 hours you will have worked almost 7 of them just to pay Uncle Sam . 

But, if you were to find ways to save, you don't need $533 but only the $400 that is actually needed to pay the bill.

If you shop the sales at the grocery store each week and use up some of the food lurking in your cupboards and freezer, you could save $25 a week or $100 for the month.

If you pack your lunch for work (think leftovers, soup, and sandwiches) you can easily save $25 per week or another $100 over the course of the month.

If you eat at home one more day a week rather than ordering pizza or takeout or going out to your favorite restaurant you can easily save another $40 per week  or another $160 per month per adult.

And, if you bring your own coffee from home and skip the daily latte (my weakness)  for 3 days a week you could save another $42 per month.

 There is your needed $400 with $2 extra.  And, you still have those27 hours of time with your friends and familyyou would otherwise loose. Plus, you have and less taxes to pay.

If you are retired you will have the satisfaction of knowing you did not need to take extra out of that finite pot of money that has to last you from now until you are pushing up daisies. I don't want to think about having to face a future where part of my daily social interaction is asking "Do you want fries with that?" I routinely  work to make my money stretche further.

 I stress less, and the future looks brighter. 

s sale
c oupon use incl kohl's and jc penney and target and such

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