A Penny Saved Is A Penny Earned

The quote “A Penny Saved Is A Penny Earned” by American founder Benjamin Franklin is still as wise as it was in the 1700s. Today, we may say something like; “How do I minimize my taxable income?” but it is actually the same line of reasoning. Reducing financial stress is a core element of Christ-Centered Slow Living.

One of the ways we can save money is by legally avoiding taxes. Income is taxed at the federal, state, and local levels and your income is also subject to additional levies to fund Social Security and Medicare. Taxes are difficult to avoid, but there are many strategies to help ward them off. Here are a few realistic ways of protecting your family’s income.

Contribute to qualified retirement and employee benefit accounts with your hard-earned pretax dollars.
Purchase absolutely everything you need on sale or used.
Pay someone to do your taxes. When we started doing this our accountant showed us so many tax credits that we had no idea about. Most computer programs are unable to do this. You will make back the money on this one.
Barter with your neighbors. My family has two productive apple trees, we swap apples for pears with friends. Bring back bartering…swap your skills and labor with a neighbor with a different set of skills.
Invest in municipal bonds for Interest income as they are generally not subject to federal tax. Also, invest in dividend-making stocks. Do your research though and make sure to read all of David Bahnson’s books!
Hang dry your laundry and unplug everything before you go to bed.
Start a home business – it’s fun but also because there are many tax write-offs like deducting part of your home expenses with the home office deduction. You can also deduct a portion of your utilities and the internet used in your business.
Use a Health Savings Account (HSA). We use This option through my husband’s employer to reduce taxes on our medical bills. With six children this really helps!
Make homemade nutritious meals. This will not only save you money on food but also save you money on medical bills.
Keep track of your small business travel expenses so you can write them off when tax season comes around.
Own don’t rent. Ownership builds generational wealth.
Make charitable donations; the best way to do that is the tithe at church. Being generous saves you money!
Make Energy-Efficient Updates to your home and save the receipts.

Our new Constitution is now established,

everything seems to promise it will be durable;

but, in this world, nothing is certain

except death and taxes.

Benjamin Franklin

YOUR TURN…

How do you save a penny?

Peacefully Yours,

Janelle

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A Penny Saved Is A Penny Earned