A Dollar Saved > A Dollar Earned

Benjamin Franklin said, “A penny saved is a penny earned.” However, Ben’s phrase is an over simplification of the real world. In the real world, there are taxes, time value of money, and a person must actually do something to make back that dollar (unless all income is passive). All these real world factors punish spenders on the less glamorous side of the spending equation – earning. In order to spend $1K a person must earn much more than $1K.  And earn  even more than that if the $1K would have went towards an income producing asset.

For example, I person may save $1K by not purchasing discretionary purchase. In order to make up for that purchase the person must trade their time to make money in the amount that equals $1K and the income tax. Also, if it takes time to make this extra money back that saved $1K would be making interest in an account.

While saving and investing might not be as hot as a new designer wardrobe, a rich old man is hotter than a poor old man at the bars. Which time of your life could you use the boost at the bar to get laid? When you are young and hot or old? Pick the money over the wardrobe. Besides by next season that new shirt will not be as fresh as the cash you could have saved not buying the shirt.  A truer statement than Ben’s statement is, a gay dollar saved > a gay dollar earned.

How do you view your gay money and spending your gay money?

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