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Home Business
So you want to start a home based business. Just think, you can work in your slippers when you want to - what could be better? No commute, not having to play office politics, no income - Whoops how did that sneak in? Let's have a reality check...
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...
Reloading The Matrix with Jada - Mrs. Smith that is!
It has been nearly two years since the fabulous Mrs. Smith has graced audiences with her presence on Hollywood’s silver screen. This month, Jada shows audiences that the wait is over, starring in the highly anticipated film The Matrix: Reloaded. ...
When the Levee Breaks, a selfish look at the financial effects of Katrina and how many more fuel increases we can take
The aftermath of Katrina has affected more that just New Orleans and the surrounding gulf coast. There are huge financial implications associated with the catastrophe, from the initial humanitarian aid to the rebuilding and repairing needed to get...
Whose Goals Are They?
Many have goals, but few reach them all. Businesses like sports teams aspire to making goals (gaining points) to earn rewards. Are your goals clichéd with being productive? Why is it so difficult to set realistic goals that 100% of the time you...
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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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