Wrong!
The concept of saving money is right, but the formula is wrong. Uncle Sam is watching!
Money earned has to be taxed, but money saved does not. If the tax rate is 44% (35% federal + 9% California), I have to earn $1.8 to save $1. [ $1.8 * (100% - 44%) = $1.008]
If I see that the things I buy also have to be taxed, a cup of $7 TPTea will have to be taxed at $7.6. I have to earn $13.7 to afford it. [ $13.7 * (100% - 44%) = $7.67]
So, I quit drinking tea.
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