During such times of economic uncertainty, it becomes even more important to save on your daily purchases and any other larger expenses. When you save money, you actually earn more money than if you were to make more money at work. For example, by saving $50 you earn more than if you were to earn an extra $50.
The reason is that the more you earn, the higher your taxes become. So, by earning $50, you put progressively less than that in your pocket (for most). You end up putting $50 minus any taxes into your bank account. But, if you were to save $50, you are saving a full $50. That $50 also came from a lower tax bracket so you were taxed less when you earned it. This goes to show that if you want earn more, one of the first ways to start is by trying to save more. There has always been enormous opportunity for saving, but considering the current economic conditions, now would be a great time to start exploring more ways of cutting corners in your expenses.
Many of you may already be aware of this concept, it has been explored in various books and talked about casually. For those of you who already knew, let this be a reminder to save more to earn more. For those of you who weren’t aware, if you would like more information, be sure to check out Andrew Tobias’ The Only Investment Guide You’ll Ever Need.