| If you are an employee, you can get a 40% pay | | | | had already destroyed the increase. To make |
| raise without ever asking the boss. And it's all | | | | matters worse, not only do prices increase just |
| tax-free. Similarly, if you are an employer, you | | | | before a pay raise, but we usually turn around |
| can show each of your employees how they can | | | | and commit the raise to some new monthly |
| earn a 40% pay raise and it won't cost the | | | | payment purchase. "Oh yeah, now I can afford |
| employer a thing. Before writing me off as being | | | | that new High Definition everyone is talking about." |
| a pair short of a full deck, read on. | | | | When will we learn that more money does not |
| The following information is based upon figures | | | | necessarily increase wealth? |
| gathered in the late 90's from U.S. Census Bureau, | | | | Become "Un-vulnerable" |
| National Association of Realtors, Chicago Title and | | | | I use to know a homeless fellow by the name of |
| Trust, Bankcard Holders of America, and Ram | | | | Pete. Pete use to be well off but fell onto bad |
| Research. Though the figures will vary today, the | | | | times. Today, however, he is considered local |
| net affect is the same since income has risen | | | | color because of his spectacular wardrobe- |
| proportionately but debt load remains the same. 1. | | | | straight out of Daniel Boone, Jedediah Smith, or |
| The average household income = $3935 monthly | | | | Snowshoe Thompson. Pete is so colorful, tourists |
| or $47221 annual. 2. The monthly mortgage | | | | have their picture taken with him. |
| average (without tax and insurance) = $662 3. | | | | But Pete lives on the street. Yet, he is less |
| Average car, credit cards, and loans = $568 4. | | | | vulnerable than most of us. Why? His income |
| Therefore, the average total debt = $1230 5. | | | | versus output is more positive than for most of |
| Debt Load Average (% total debt to income = | | | | us. He doesn't owe anything to anybody. No one |
| $1230 divided by $3935) = 31.3% Therefore the | | | | can take anything from him. He is completely |
| average family's present lifestyle could be | | | | independent. He is financially "un-vulnerable" |
| maintained with 31.3% (or $1232) less per month | | | | You can be "un-vulnerable" also and you don't |
| without debt. Another way of looking at the | | | | have to become homeless. You simply need to |
| same information is that if the average family | | | | give yourself a real pay raise... Get out of debt |
| were debt free, their current annual income | | | | Wealth Has Nothing To Do With How Much You |
| ($47,221) would be comparable to a family | | | | Earn |
| income of $71,428 annually with a 31.3% debt | | | | It's been said that the best way to help out the |
| load. | | | | poor, is not to become one. I can relate to that! |
| But I said in the beginning "40%", didn't I? What | | | | So, I am not suggesting that we all become |
| was I thinking of? How could I have made such | | | | miniature Pete's as suggested above. But we can |
| an error? It's only a 31.3% pay hike. By the way, | | | | learn a lot from him as well as an even more |
| since you gain this increase by paying off debt, is | | | | authoritative source- the bible. "...And the borrower |
| this taxable? I don't think so! Therefore, we need | | | | is the lender's slave." (Proverbs 22:7) When you |
| to compensate for a post-tax versus pre-tax pay | | | | owe someone, they own you. Now here is the |
| raise. | | | | point. Wealth has nothing to do with how much |
| You can conservatively add at least a 10% tax | | | | money you earn. Wealth is rather that sense of |
| relief since this is a post-tax raise in pay. Our pay | | | | being financially independent, financially |
| raise goal now easily exceeds 40%. Give yourself | | | | un-vulnerable. And unless you are completely out |
| a real pay raise... Get out of debt! (To learn more | | | | of debt, you are a slave to whomever you owe |
| about getting out of debt, check out the article | | | | money. On the other hand, if you are debt free |
| Debt Destroyed By Magic Bullet) What's Wrong | | | | including your home, who can touch you? You |
| With a Traditional Pay Raise? | | | | then have the option of investing the money you |
| What's wrong with tax cuts and a pay raise? Not | | | | use to waste paying bills. You can buy items cash |
| a thing as long as it leads to increased wealth. | | | | and get the leverage cash can bring to the |
| Unfortunately, it rarely does. It usually just leads | | | | bargaining table and still remain out of debt. You |
| to increased income. So, what's the difference? | | | | even have the option of reducing the need to |
| Realizing that I am swimming upstream while | | | | bring in a paycheck by living on less with a simpler |
| most others are swimming down, I cannot help | | | | life or a life more to your choosing. |
| but be disillusioned. When was the last time a | | | | Give yourself a real pay raise. Get out of debt. |
| national pay hike or tax cut kept pace with the | | | | Athor Bio: |
| overall inflation and shrinking dollar? How come | | | | Mike has been an Internet Guide/Writer in the |
| with all this extra money we keep coming up | | | | field of Credit/Debt Management for over 10 |
| with, we are no better off then we were? | | | | years. His site was awarded Best Of Net by |
| Throughout my military career, I was always | | | | Forbes Publication from 2000 to 2005 with site |
| amazed that about 2-3 months prior to a federal | | | | visitation doubling to over 500,000 average views |
| pay raise, local prices near military bases went up. | | | | per month in the last year. |
| By the time the money actually arrived, inflation | | | | |