The Value of Con$ervation
Saving $1,000 a year on your utility bills equals $1,000 extra you have in your pocket – TAX FREE!
Assuming 28% tax bracket, you are as much as $1,630 RICHER THS YEAR…
…in 10 years: $16,300 RICHER.
Or think of it like this: in order to make up that extra $1,000 per year on utility bills, you have to earn an extra $1,630 (Based on 28% IRS, 7.65% Fica, 3% state income tax).
To keep $50,000 net, you must earn approximately $81,500. Any area you can save puts tax-free money in your pocket. Based on this example, for non-deductible items, bills you pay, etc., for every $500 you pay, you need to earn $815 first! Of course, your exemptions and deductions will vary, but non-deductible expenses are the best places to start saving.
Other conservation ideas:
- Get the best deals on contacts such as cell phone, cable, phone, internet
- Insurance-shop around, consider higher deductibles (new homes are less expensive to insure than older homes!)
- Comparisons shop, use coupons & store discount cards
Remember, with non-deductible expenses, for every $1000 you pay, you must make as much as $1630, pay all your taxes, and then pay these bills!
(All examples based on 28% tax bracket).