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Free Money Tips
"a penny saved is a penny earned"
This
old adage is not true! The reason is is not true is due to the
effect of marginal income taxes. Marginal meaning the amount
of tax you would pay on the next dollar you earn. We
have all experienced receiving a raise or a bonus only to be
disappointed with the size after taxes. Assuming a marginal
tax rate of 30%, you would need to earn an extra $142.86 to come out
with an extra $100 after taxes! Keep in mind that if you plan
on spending that $100 on an item with 8% sales tax, you could only
buy something that costs $92.60. To purchase an item that
costs $100 assuming 8% sales tax and 30% marginal tax rate, you
would need to earn an extra $154.29!
A $100 saved is worth at least $150
earned
This
fact adds to the power to using credit counseling to lower your debt
payments. By reducing your monthly expenses up to several
hundred dollars per month, debt consolidation can offer a fresh
start on the road to more healthy
personal finances.
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