A Dollar Saved is better than a Dollar Earned

There's an old saying 'A Dollar Saved is a Dollar Earned' which originates from an old Benjamin Franklin quote -

"A penny saved is a penny earned"

However, for most of us saving a dollar is actually worth more than a dollar in real value.

Let me explain.

When you earn a dollar, it's likely you'll also pay taxes. And although the amount may vary depending on your marginal tax bracket, your dollar is always less than it's initial value.

For instance, let's say your personal tax bracket is 25% then every dollar you earn is only actually worth $0.75 after the tax man takes his cut.

Whereas, that dollar you saved is still worth $1.

Of course, your tax bracket could be much higher and therefore reduce the amount of money that actually lands in your pocket.

I figured this out a while ago when I hit one of the higher tax brackets in Australia. Suddenly, my dollar was no longer worth $1 in my pocket but rather just $0.63.

But a dollar saved was still worth $1

Do you see where I'm going with this?

Saving money, if done effectively has far more value than the dollar you earned and it can be kinda fun too!

And when I say effectively I mean not chasing a deal all over town just to save a few dollars. If you've wasted too much time or spent money on fuel then you might not be saving money anyway.

Oh, it sounds too complicated, doesn't it?

Well, it's not if you know where to look for bargains, coupons, and discounts.

And that's why we put this deals website together.

So you can find the best deals and bargains in the one place to help you save money on the things you were going to buy anyway.

And because it's powered by Steem you can also make a little extra money by sharing the deals you've found.

OK, you might be flushed with cash now, but the next recession is always just around the corner, and learning how to save money now might just mean feeding your family one more night when times are tough.

Plus, if saving money is already a habit and you're smart about it, then it kinda comes naturally to you as you learn the value of money and the tricks the stores play to get you to spend the maximum amount in-store or online.

For instance, in Australia, we have two major supermarket chains, Coles and Woolworths and because they are super competitive trying to get your attention, they often get the same deals from brands when they offer catalog products for a special price.

Therefore, you never need to feel you've just missed a special if they've sold out because 9 times out of 10 the other store will have the same product on sale at a similar or better price the following week. And when you're talking about a 50% saving it's worth traveling a few extra km's down the road to snap up that bargain.

Never pay full retail again.

Why would you when there are sales 365 days of the year now. Yes, somewhere in the world that thing you are looking for is on sale, and if you can get it delivered for a low price or even free then it's totally worth shopping around.

Just remember when it's summer in your country, the other side of the world is selling off their summer range for a discounted price. It's just the shipping you need to factor into the costs.

But when shipping is free, it's a no-brainer.

Of course, then there are cashback websites, that help you to save even more money, but I'll talk more on this in another post.

So that's enough for today and I hope you've learned why a dollar saved is better than a dollar earned.

Frugal people have always known this but did you?

_{Main Image: Pixabay}