top of page
  • Writer's picture Treavor Dodsworth CFP®, CPA, CKA®

#28 - Penny Saved > Penny Earned

Penny Saved > Penny Earned

“A penny saved is a penny earned.” Is it? In at least one respect, a penny saved is much more valuable than a penny earned. Between federal income tax, state income tax, social security taxes, medicare taxes, etc. someone could easily end up with a marginal tax of 35%. Would you come out ahead by saving $100 or earning $100? If your earned income was subject to the above marginal rate, you would have to earn about $154 to equal your $100. I will fully admit that this is nitpicking. Also, I am sure the phrase “a penny saved is a penny earned” is one of many phrases I will annoy my son with at some point… and then probably annoy him even further by explaining why that isn't always the case. In many situations though, a penny saved is more valuable than the penny earned when you take into account taxes. Never forget to account for taxes. They are one of the most significant expenses you will pay over your life.


Interesting Article(s) or Video(s)

  • People usually don't find enjoyment in taxes. Hopefully, there is at least one tax law here that makes you smile.


Thank you for reading! Do you have any money-related phrases that you find yourself using frequently?


Thanks! Message sent.

All written content on this website is for information purposes only. Opinions expressed herein are solely those of Sycomore Financial, unless otherwise specifically cited.  Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. The owner of this website takes great care to thoroughly research the information provided to ensure that it is accurate and current. Nonetheless, the content on this website is not intended to provide tax, legal, accounting, financial, or professional advice, and readers are advised to seek out qualified professionals that provide advice on these issues. All information or ideas provided should be discussed in detail with an advisor, accountant, legal counsel, and/or other pertinent professionals prior to implementation. In addition, the owner cannot guarantee that the information on this website has not been outdated or otherwise rendered incorrect by subsequent new research, legislation, or other changes in law or binding guidance. Neither Sycomore Financial or it's owner shall have any liability or responsibility to any individual or entity with respect to losses or damages caused or alleged to be caused, directly or indirectly, by the information contained on this website. In addition, any advice, articles, or commentary included on this website do not constitute a tax opinion and are not intended or written to be used, nor can they be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. Any mention of an investment product or solution is not a recommendation to buy or sell. ETFs that are mentioned may not accurately reflect the market segment mentioned. Past performance is not a guarantee of future results. Any mention of rates or return should not be seen as a guarantee those rates or return will be received.

bottom of page