Comments on: Simple Tip For Spending Less – Think About Pre-Tax Dollars http://www.thehappyrock.com/2007/09/12/simple-tip-for-spending-less-%e2%80%93-think-about-pre-tax-dollars/ Getting out of Debt, Getting off the Couch, and Getting into Life Sun, 29 Jan 2012 16:23:20 +0000 hourly 1 http://wordpress.org/?v=3.1 By: James http://www.thehappyrock.com/2007/09/12/simple-tip-for-spending-less-%e2%80%93-think-about-pre-tax-dollars/comment-page-1/#comment-13906 James Sat, 15 Oct 2011 15:14:09 +0000 http://www.thehappyrock.com/2007/09/12/simple-tip-for-spending-less-%e2%80%93-think-about-pre-tax-dollars/#comment-13906 Good advice, certainly makes you think every time you splurge, even on the small things. Another tip is always save your change when you spend (when you spend cash obviously) Good advice, certainly makes you think every time you splurge, even on the small things. Another tip is always save your change when you spend (when you spend cash obviously)

]]> By: Mrs. Micah http://www.thehappyrock.com/2007/09/12/simple-tip-for-spending-less-%e2%80%93-think-about-pre-tax-dollars/comment-page-1/#comment-999 Mrs. Micah Tue, 18 Sep 2007 14:33:07 +0000 http://www.thehappyrock.com/2007/09/12/simple-tip-for-spending-less-%e2%80%93-think-about-pre-tax-dollars/#comment-999 Ouch. I had thought some of that before, but not so clearly. Then again, I've also worked very hard to think of my salary in terms of take-home, not pre-tax. That way I don't get fancy notions about what I can afford. But if I'm doing the "it would take me x number of hours to earn this," this formula would be appropraite. If, on the other hand, I'm thinking in terms of weeks or months, I already have those numbers. :-/ Ouch. I had thought some of that before, but not so clearly.

Then again, I’ve also worked very hard to think of my salary in terms of take-home, not pre-tax. That way I don’t get fancy notions about what I can afford.

But if I’m doing the “it would take me x number of hours to earn this,” this formula would be appropraite. If, on the other hand, I’m thinking in terms of weeks or months, I already have those numbers. :-/

]]> By: Festival Of Frugality #92 - Ideas For Saving Money And Increasing Your Income http://www.thehappyrock.com/2007/09/12/simple-tip-for-spending-less-%e2%80%93-think-about-pre-tax-dollars/comment-page-1/#comment-989 Festival Of Frugality #92 - Ideas For Saving Money And Increasing Your Income Tue, 18 Sep 2007 12:32:34 +0000 http://www.thehappyrock.com/2007/09/12/simple-tip-for-spending-less-%e2%80%93-think-about-pre-tax-dollars/#comment-989 [...] The Happy Rock is thinking about money in terms of pre-tax instead of after-tax. [...] [...] The Happy Rock is thinking about money in terms of pre-tax instead of after-tax. [...]

]]> By: The Happy Rock http://www.thehappyrock.com/2007/09/12/simple-tip-for-spending-less-%e2%80%93-think-about-pre-tax-dollars/comment-page-1/#comment-896 The Happy Rock Thu, 13 Sep 2007 14:45:36 +0000 http://www.thehappyrock.com/2007/09/12/simple-tip-for-spending-less-%e2%80%93-think-about-pre-tax-dollars/#comment-896 Good point One Family, although Roth definitely have there place too. Dec, because of the way tax brackets in the US work you don't actually pay 33% income tax on all of your money, just the portion over some set amount. Our actual tax percentage paid is much less than our tax bracket. I added in the assumption of a 25% actual tax bracket, to hopefully make it a little more clear. I think the $133 for groceries is correct, but your questioning made me correct the new car calculation from $37,000 to $33.500. Thanks for the help! Maybe I will make a after tax calculator to make it a little simpler. Good point One Family, although Roth definitely have there place too.

Dec, because of the way tax brackets in the US work you don’t actually pay 33% income tax on all of your money, just the portion over some set amount. Our actual tax percentage paid is much less than our tax bracket. I added in the assumption of a 25% actual tax bracket, to hopefully make it a little more clear. I think the $133 for groceries is correct, but your questioning made me correct the new car calculation from $37,000 to $33.500. Thanks for the help! Maybe I will make a after tax calculator to make it a little simpler.

]]> By: Dec http://www.thehappyrock.com/2007/09/12/simple-tip-for-spending-less-%e2%80%93-think-about-pre-tax-dollars/comment-page-1/#comment-890 Dec Thu, 13 Sep 2007 09:12:53 +0000 http://www.thehappyrock.com/2007/09/12/simple-tip-for-spending-less-%e2%80%93-think-about-pre-tax-dollars/#comment-890 Surely you've got the calculations wrong here. If you $100 after paying 33% tax then you had $150 to start with - good tip but it's worse than you thought! Surely you’ve got the calculations wrong here. If you $100 after paying 33% tax then you had $150 to start with – good tip but it’s worse than you thought!

]]> By: One Family's Blog http://www.thehappyrock.com/2007/09/12/simple-tip-for-spending-less-%e2%80%93-think-about-pre-tax-dollars/comment-page-1/#comment-880 One Family's Blog Thu, 13 Sep 2007 04:03:10 +0000 http://www.thehappyrock.com/2007/09/12/simple-tip-for-spending-less-%e2%80%93-think-about-pre-tax-dollars/#comment-880 The same logic in reverse is a good trick to convince yourself that saving using a tax-deferred instrument such as 401K and IRAs are good - for a 33% tax bracket, $100 invested in a 401K is just $67 after taxes. Regards, OneFamilysBlog@gmail.com http://OneFamilysBlog.blogspot.com The same logic in reverse is a good trick to convince yourself that saving using a tax-deferred instrument such as 401K and IRAs are good – for a 33% tax bracket, $100 invested in a 401K is just $67 after taxes.

Regards,
OneFamilysBlog@gmail.com
http://OneFamilysBlog.blogspot.com

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