Comments on: A Dollar Saved is Two Dollars Earned but Two Dollars Earned is Twenty Dollars Saved

By: shakylegs

shakylegs — Wed, 01 Feb 2012 19:53:14 +0000

I realize I should have also made a “saved” scenario” in my comment above:

If it took a whole year to earn $50,000 with $37,500 fixed costs to save $7,500 (remember your fixed costs continue relentlessly whatever you do) Then one dollar saved is equal to four dollars earned. It gets worse, if you save only $1,000 out of the $50,000 income, the one dollar saved is then worth fifty dollars earned; in other words “a dollar saved is worth fifty earned.”

By: shakylegs

shakylegs — Wed, 01 Feb 2012 19:11:11 +0000

Quote: “if we start a part time job and earn another $500 a month, we will get the same $500 extra each and every month.”

In this present economy “get a part time job” is a facile statement. A better way to think of “a dollar saved is two dollars earned” is this:

You have your monthly earnings. You also have your fixed costs: taxes, insurance, housing, food, transportation, etc. But we all waste money one way or another. So let’s say you make $50,000 a year, and your fixed costs are 75% of that, but waste the remaining $12,500. Maybe not waste, but you can call them “life’s little luxuries.”

To continue: It took a whole year and $37,500 to earn that wasted $7,500 (remember your fixed costs continue relentlessly whatever you do.) To make up for the wasted money you will have to work a whole additional year (with no waste) to just break even.

Even if you do not waste money, but your fixed costs are equal to your income, then you are on a treadmill to nowhere. In previous economies we could all count on the house as our “nest egg” but no more.

By: Joseph

Joseph — Sun, 08 May 2011 03:50:49 +0000

I have read many comments that say, “make yourself valuable at your job to make more money”. However, that is not an accurate statement. In too many cases I have come across, I have done this by putting extra hours in (with no pay for it), taking on more responsibility, being proactive, and going the extra mile to do the best job possible. I usually get the “Wow, you are a great worker/employee” speech, and then when time came for annual reviews and raises I still received nothing more than a 3% cost of living increase. Too many employers out there are looking to milk you for all you are worth, and not pay a dime extra for it. Getting raises and promotions have less to do with the job you do than with the financial fitness of the company, their budget, your relationship with you supervisor, your supervisor’s idea of your skills, and often, simple old favoritism. Yes, this is a jaded and pessimistic view, but unfortunately, it is also correct.

By: Thrifty Gal

Thrifty Gal — Mon, 24 Jan 2011 03:13:39 +0000

Don’t forget that having a second job might have costs. For instance, if you have little time between your first and second jobs (assuming you go to both on the same day), you might end up buying a meal out because there is no time to go home and prepare dinner between the two jobs. Also, you might have to pay more in child care, if you have children.

By: Nse victor OKon

Nse victor OKon — Sun, 28 Jun 2009 12:09:48 +0000

Thanks for your posts here. They are lovely. But I want you to tip people more on how to earn more money adn how to utilize their times effectively well because it takes the rcih man the same hours in a day to become rich and the poor man the same hours to remain poor. What is the difference between the two?

By: CD Rates

CD Rates — Wed, 02 Jul 2008 13:32:37 +0000

No matter how much you earn, you should always put some away. Earnings (even for big-time CEOs) can change drastically. You can also have an unexpected events that have large expenses.

Savings 3 – 6 months of living expenses is always prudent.

By: magnesium

magnesium — Wed, 02 Jul 2008 13:05:59 +0000

From my point of view in order to avoid saving one should earn money enough

By: Chad @ Sentient Money

Chad @ Sentient Money — Mon, 30 Jun 2008 14:22:45 +0000

A second job is only one option. You could ask for a raise, start a side business, start a blog, etc. Don’t limit yourself.

By: Ann

Ann — Thu, 26 Jun 2008 17:04:08 +0000

I think you’re on the right track. Folks should keep in mind, though, that the more energy they expend on a second, part-time job, the less they’ll have to expend on their primary job. It might be better to make yourself as valuable as possible in your current position so that you can be promoted into a higher paying position.

Also, a second job can sometimes conflict with your current schedule. Your primary employer deserves to schedule you first, without consulting with you over your other job schedule. When they conflict, you really must honor your primary employer’s schedule. This could result in the loss of the second income.

By: Top CD Rates

Top CD Rates — Thu, 26 Jun 2008 15:53:44 +0000

Creating passing income is the key. There are many ways to do it. I think the interent still provides one of the best. You will have to invest some time upfront, but overtime, your actual time spent can decrease. You don’t have to invest a ton of money upfront.