'Cost Cutting Your Way to Wealth' ...
... is the title of an article in my favourite personal money management magazine, that arrived today.
Haven't read it yet.
It causes me to remember a book written by a local financial advisor, several years ago, titled, "Financial Freedom without Sacrifice"
One of his topics was, "How to make nearly 40% on your money - guaranteed".
Thesis was - most of the stuff that most of us buy using so-called "credit" (really "debt") cards isn't tax deductible.
If you carry a balance on a store-issued card, usually the cost is about 25 - 28% annual rate of interest, fee, or whatever you want to call it.
Whatever - it's still money flying out of your pocket - into theirs.
And, since most of the stuff bought isn't deductible, you must pay that interest/fee/admin. cost, or whatever - with after-tax money.
So, if you're in 30% tax bracket, of each $10.00 that you earned, only $7.00 is left, after tax.
So - $40.00 earned leaves $28.00 after-tax money to pay the interest on that $100. carried on your store-issued "credit" card.
This only works in terms of reducing the balance owing on one's credit cards - sorry.
That writer also said that they should teach more about managing money effectively in our schools, which they don't.
Have a great tax-reducing week, everyone.