Use the "Intelligent Spending Decision" process = NO TAXES!
I share these tips, ideas and suggestions with you under the theroy of "savings" and you visit my blog under the opportunity of " how can I save money?".
HOWEVER..... and that's a BIG - HOWEVER..........
You are not saving money, you are not making money - you are simply reorganizing the money you have to spend so that you get the most possible from your money - - - ergo "savings", "making money", whatever wording you choose to use - you are "stretching your nickels till the buffalo poops" as the old saying goes. With NO EXTRA TAXES!!!!
With this "new age" wording (like being a "mulit-tasked employee", only means that you can do your job and the job of 2-3 employees, therefore the employer only has to pay ONE salary and gets 3 jobs done... but I move on.....) it can all be misconstrued to be savings or making money - all of which are TAXABLE! But by using the "Intelligent Spending Decision" process. (Or in regular, ordinary words, "Don't be an idiot and throw your hard-earned money down a rat hole!" ). You don't have to pay taxes - as the outcome is not earned (thereby taxable) income!
So let's look at it the "new-age" way - If you were to work extra hours at your job to earn more money you are "making" money, right? Well, with the "Intelligent Spending Decision" process, you aren't "making money" you are just NOT spending so much!
Whatever wording you want to use, "made" money" make money", "saved" money, all you did was NOT PAY FULL PRICE !!! You didn't have buy the item, you got a free sample. You didn't pay regular price, you paid sale price offered by the store themselves. You made your purchases shopping wisely and intelligently and looking for the best deals, lowest prices and best opportunities! You can create extra money by making intelligent decisions, choosing smart options, planning and organizing and not wasting your time or money and not spending more than you actually NEED to.
And this "extra money" is NOT TAXABLE! You shopped wisely and got lower prices. PERIOD!! No business involved, no W-2 - it is just using the Intelligent Spending Decision" process.
On the 1040, you have to report your earnings and income. Any money you saved because you didn't pay full price is NOT income! The store didn't reimburse you the difference! The difference between the sale price and the regular price is NOT income - therefore not taxable! You didn't EARN the difference, you weren't employed, no money changed hands for the difference, you just DIDN'T PAY THE FULL PRICE!!! PERIOD!!!! Now if you actually put the savings between the sale price and the regular price in a savings account, yes at the end of the year you have to pay taxes on the interest you "earned" from that as you DID earn that interest.
But in my case, I didn't do all these things and figure out how to "make money" or even to "save money". I did it as it was the only way I could make ends meet! I either waited and shopped the sales and feed my kids, or I paid full price for what I wanted when I wanted it and the kids didn't get 3 meals a day. My choice was my kids- a no brainer. But if your "earned" income is different, you can use the outcome of these tips and suggestions differently. It's up to you. Just practice the "Intelligent Spending Decision" process
"Save A Little To Save Alot" is the theory, having enough MONEY is the outcome! A win-win situation! Doesn't get any better than that!
To make money, save money or just stretch what you have-continue reading articles for more tips, ideas and ways to do all 3!
HOWEVER..... and that's a BIG - HOWEVER..........
You are not saving money, you are not making money - you are simply reorganizing the money you have to spend so that you get the most possible from your money - - - ergo "savings", "making money", whatever wording you choose to use - you are "stretching your nickels till the buffalo poops" as the old saying goes. With NO EXTRA TAXES!!!!
With this "new age" wording (like being a "mulit-tasked employee", only means that you can do your job and the job of 2-3 employees, therefore the employer only has to pay ONE salary and gets 3 jobs done... but I move on.....) it can all be misconstrued to be savings or making money - all of which are TAXABLE! But by using the "Intelligent Spending Decision" process. (Or in regular, ordinary words, "Don't be an idiot and throw your hard-earned money down a rat hole!" ). You don't have to pay taxes - as the outcome is not earned (thereby taxable) income!
So let's look at it the "new-age" way - If you were to work extra hours at your job to earn more money you are "making" money, right? Well, with the "Intelligent Spending Decision" process, you aren't "making money" you are just NOT spending so much!
Whatever wording you want to use, "made" money" make money", "saved" money, all you did was NOT PAY FULL PRICE !!! You didn't have buy the item, you got a free sample. You didn't pay regular price, you paid sale price offered by the store themselves. You made your purchases shopping wisely and intelligently and looking for the best deals, lowest prices and best opportunities! You can create extra money by making intelligent decisions, choosing smart options, planning and organizing and not wasting your time or money and not spending more than you actually NEED to.
And this "extra money" is NOT TAXABLE! You shopped wisely and got lower prices. PERIOD!! No business involved, no W-2 - it is just using the Intelligent Spending Decision" process.
On the 1040, you have to report your earnings and income. Any money you saved because you didn't pay full price is NOT income! The store didn't reimburse you the difference! The difference between the sale price and the regular price is NOT income - therefore not taxable! You didn't EARN the difference, you weren't employed, no money changed hands for the difference, you just DIDN'T PAY THE FULL PRICE!!! PERIOD!!!! Now if you actually put the savings between the sale price and the regular price in a savings account, yes at the end of the year you have to pay taxes on the interest you "earned" from that as you DID earn that interest.
But in my case, I didn't do all these things and figure out how to "make money" or even to "save money". I did it as it was the only way I could make ends meet! I either waited and shopped the sales and feed my kids, or I paid full price for what I wanted when I wanted it and the kids didn't get 3 meals a day. My choice was my kids- a no brainer. But if your "earned" income is different, you can use the outcome of these tips and suggestions differently. It's up to you. Just practice the "Intelligent Spending Decision" process
"Save A Little To Save Alot" is the theory, having enough MONEY is the outcome! A win-win situation! Doesn't get any better than that!
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posted by Frugal Money Saving Ideas @ 6:49 PM
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