How Do You Treat That Hard Earned Dollar?

Do you wash it, iron it, and put it in neat stacks in your wallet. Or is it smashed, wrinkled and getting no respect? Do you know how much you have to work to get that dollar in your pocket? Let’s figure it out.

Let’s say you make $12 an hour and work 40 hours a week – that’s $480 BEFORE deductions! Now for those deductions;

Taxes 20% = $96
Social Security 6.2% = $29.76
Your part of your health insurance premium = $75

This will leave you $279.24. For every dollar earned you are netting 58 cents!

Find out if you are paying too much tax – check out the IRS website at www.irs.gov and complete the Welcome to the IRS Withholding Calculator to determine how much tax you should pay each month.

Keep in mind, we all must pay our taxes but don’t overpay. This is your money that can be put to work for you by putting it towards expensive debt or to grow your savings.

Intaxication: Euphoria at getting a refund from the IRS, which lasts until you realize it was your money to start with. ~From a Washington Post word contest

Published Jul 9, 2008.