Tuesday, November 1, 2011

The sequence

If you are employed by others, you have to pay tax to government before you can pay yourself.
If you have your own company, you can pay yourself first before paying tax to government.
This is a major factor why the rich get richer and the poor remain or worse.

After getting salary,
You can spend first before saving, or, Save first before spending.
First one either you end up no saving, or become to stingy and scare to spend.
Second one you will know at least how much you can save, and the extra that left after spend is bonus.

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