I think it was the Quaker Oats guy who famously declared that a penny saved is a penny earned. However, because of taxes, a penny saved is actually worth more than a penny earned. To illustrate, if you happen to be in the 10% tax bracket, every taxed dollar you earn is worth only $0.90; tack on FICA, state and other taxes and it’s worth even less.
The bottom line: Although striving to continually increase your income should always be your first goal, finding ways to save by cutting your spending is actually more cost effective than earning money.
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