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Five Questions to Ask Yourself Before Starting a New Business
Owning a home used to be the “American Dream.” However, this long-standing goal that so many aspired to, and ultimately reached, has been replaced with a new goal -- becoming a business owner. At first glance it sounds perfect: Leave the...
Freelancers: Your Job Away From Job
Freelancers are just like mercenaries. They find a job to do;
they do it without question; they get their pay and leave
through the front door.
Freelancers do not have to like the people they work for, nor do
they have to abide by the...
Is it Boys vs. Girls on the Internet?
Most people who begin internet businesses do so to escape the office politics. Women, in particular, are drawn to the freedom, flexibility, and choice that owning a web based business affords. While the glass ceiling and good-old- boys clubs' exist...
Succession Planning? ... Not on My Watch!
> At first blush, it would appear there is no shortage of Succession Planning Advocates convinced in theory, the importance and benefits of corporate Succession Planning. In practice, however, real succession planning - or the overt...
Uncovering Soul in the Workplace
Learn about a growing trend in spiritual revival in the workplace.
The San Francisco Chronicle recently reported “soul is in”. In a headline calling it “the buzzword of the ‘90s” a front-page story reported that some 322 citations for the word...
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Ben Franklin Didn't Quite Get it Right
When Ben Franklin said "a penny saved is a penny earned", he didn't quite get it right. Actually, a penny saved is worth more than a penny earned. Do you find this statement shocking? I am about to prove to you that what I'm saying is true.
Most people erroneously believe the best way to strengthen their financial health is to increase their income. On the contrary, saving money by cutting costs will get you there quicker. You see, it's very simple. When your income increases (with some exceptions like the part of it you put into your 401k), that extra money is taxed. On the other hand, any amount you save by cutting costs is not taxed. Therefore, $20 saved by cutting costs is worth more than a $20 increase in income.
The following (although over-simplified) example will illustrate this principle. Let's suppose that Jack and Cindy have identical jobs and incomes. Let's also suppose they shop at the same grocery store and pay about the same amount for groceries each week. Now, Jack gets a $20 per week pay increase and Cindy does not. However, at about that same time, Cindy finds a new grocery store where she is able to save $20
per week on her grocery bill. Assuming nothing else has changed, Cindy is now better off financially than Jack, even though she did not get a raise and he did. How can this be? It's because Jack has to pay taxes on his $20 raise but Cindy does not have to pay taxes on her $20 grocery discount. Assuming Jack is in the 25% federal tax bracket (and disregarding any possible increase in his state or local taxes), he will be able to put only $15 into his piggy bank each week whereas Cindy will be able to put the whole $20 a week into hers!
Bottom Line: It is more blessed to receive a discount than to receive an equal amount in a pay increase!
ABOUT THE AUTHOR
Terry Mitchell is a software engineer, freelance writer, and trivia buff from Hopewell, VA. He also serves as a political columnist for American Daily and operates his own website - http://www.commenterry.com - on which he posts commentaries on various subjects such as politics, technology, religion, health and well-being, personal finance, and sports. His commentaries offer a unique point of view that is not often found in mainstream media.
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