MU Extension MU Extension       University of Missouri    ●    Columbia    ●    Kansas City       Rolla     ●    St. Louis

MissouriFamilies.org - Money Matters - Consumer Action

 

Finance Quick Answers

 

 

Does saving a little "here and there" really make a difference?


Remember the saying, "A penny saved is a penny earned?" Unfortunately, many tend to ignore the message behind this old adage because they fail to look at the long term effect of saving. Savings can be more valuable than earnings. Consider this: if you cut your expenses by just $1, you save a full dollar. On the other hand, if you pay 30% in taxes, to make enough to spend a dollar you would have to earn $1.43. In higher tax brackets you must earn even more.
 

This is just a simple example of how small savings add up to big dollars. On a larger scale, think about your weekly grocery expense. If you pay 30% in taxes, spend 20 minutes a week clipping grocery coupons for items you would buy anyway, and save $20 as a result, that is the equivalent of a raise of nearly $30 a week.
 

So clip coupons, save that loose change, and watch your savings grow!

 

 

 

 

Written by:
Sandra McKinnon, Consumer & Family Economics Specialist, University of Missouri Extension

Cynthia E. Crawford, Ph.D., Consumer & Family Economics Specialist, University of Missouri Extension

 

 

 

 

 

 

 

 

 

 

Can't Find Your Question Here? Try Searching Our Quick Answer Knowledge Base

Last update: Monday, July 28, 2008

 

 

 


 
University of Missouri logo links to http://extension.missouri.edu

Site Administrator:
mofamweb@missouri.edu 
Copyright  ADA  Equal Opportunity


MissouriFamilies is produced by the College of Human Environmental Sciences,
Extension Division, University of Missouri-Columbia