A dollar saved is two dollars earned!

It really is … A dollar saved is almost two dollars earned. Think about it. If your employer gives you a grand two dollar bonus, how much do you actually get? About a dollar, because you have to pay income tax, social security tax, medicare tax, etc. So in reality, you only got a dollar increase.

There are several ways you can save your dollars.

• You can buy things for bargain. Rather than pay full price for an item, you can get new items for a lesser price. Shop at Walmart, Big Lots, Christmas Tree Shop, places where you get good stuff for a less price. I am not saying, become a total cheap freak. But, it helps you save some money.
• Don’t buy brand new cars. The moment you drive the car off the dealer’s lot, it’s price is reduced by several thousand dollars. Purchase a pre-owned vehicle.
• Don’t purchase luxuries on credit. Save for luxuries. If you pay for your big screen tv, vacation, stereo system, etc. in cash rather than take a loan, you will enjoy them much better. On top of that, you also save money on interest that you would pay otherwise.

Most people are good at saving money in the above mentioned ways. But, the difference between the rich and poor people is what you do with the savings. Poor people buy more things with the money they save. Things that don’t appreciate in value. Rich people save or invest the difference between full price and the price they pay for items they need.

Question is … What do you do with your savings? Do you invest it for future or do you spend it?

Hope this helped. Looking forward to reading your comments.

Respectfully,
Mayur

Tags: Finances, Money Management