What’s worth more: The $100 you save, or the $100 you earned? What would YOU rather have the option to do? Here’s what’s better, enjoy! Add me on Snapchat/Instagram: GPStephan
Join the private Real Estate Facebook Group:
Get $50 OFF + FREE Coaching Call FOR A LIMITED TIME: Code THANKYOU50 – The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c
I think it’s safe to assume that most people would just rather make the extra $100. If there’s something you want, instead of scaling back and saving your existing income, just work more and make an extra $100…seems simple…but in reality, that $100 isn’t what you think. Let’s start here…to earn that extra $100, chances are, you’re going to have to spend your time making that extra $100. In this example, we’re going to take the typical single California resident earning about $55,000 per year, or $27 per hour.
This means that to make an extra $100 in income, it requires you to work 3 hours and 42 minutes. But wait a second… unfortunately, you also have taxes. Since we’re focusing on the top end of your $55,000 per year income bracket, 22% is subtracted from federal income tax….9.3% from state income tax…6.2% for social security tax…and another 1.45% in medicare taxes. If you’re self employed, you tack on another 7% and then cry yourself to sleep…
That means for the typical employee, $100 earned is only $61.00 after taxes…and just like that, you lost 39% of your income. If you’re self employed, the number is closer to HALF…you lose almost 50% of your income to taxes.
This means, in order to MAKE an extra $100 AFTER taxes, it requires you to EARN $165, WHICH AT $27 an hour, equates to just over 6 HOURS of work. Now, compare that to the $100 you already have in your bank account. Most likely, that $100 you have is already after tax money. That $100 is equal to $100.
Not only that, but when you compare the two…do you think it’s EASIER working over 6 hours to make $100 after taxes at $27 an hour…or is it easier to just find a way to not spend the existing $100 you already have? Chances are, you can find a LOT of ways to save $100 that won’t take you over 6 hours to do.
This means that the time it takes to SAVE $100 is drastically less than the time it takes to MAKE $100 after taxes. And from an ROI perspective, spending your time focusing SAVING MORE will have a much greater outcome than focusing your time on EARNING MORE. And doing this is much better at increasing your net worth.
What intensifies this even MORE is that anything you spend $100 on is paid for with after tax money…meaning that the $100 item you bought, is really worth $165 worth of gross income.
The main purpose and takeaway of this video is really just to show you the power of FIRST focusing on reducing your expenses and saving money, because THIS often has the best ROI, THEN focusing on making more money SECOND. Not only does SAVING the $100 require less time and less work, but it’s WAY easier than earning an extra $100 after taxes. So you need to think to yourself…would you rather spend $100 less, or spend your time earning $165 more? And when you look at it this way, it’s really like every $100 you save is worth $165 earned.
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness@gmail.com
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve – https://goo.gl/sT68EC
American Express Platinum – https://goo.gl/C9n4e3
Read more: youtube.com