Q: Have you heard the old saying, “A penny saved is a penny earned”?

A: It’s a classic from Benjamin Franklin — but in today’s world, saving a dollar is actually worth more than earning one. Why? Because you don’t pay taxes on a dollar you save, while every dollar you earn gets taxed. Depending on your tax bracket, saving $1 can be the equivalent of earning $1.30–$1.50 before taxes.

Here’s how this adds up in your favor:
• Savings are tax-free: To have $1 after taxes, you often need to earn $1.30 or more.
• Avoiding debt interest is just as powerful: Paying off a credit card charging 20% interest is like earning 20% on an investment — nearly impossible to find legally anywhere else!
• Small savings add up fast: Making consistent, conscious choices to avoid wasteful spending is a guaranteed return — risk-free and immediate.So yes — a penny saved might actually be the smartest penny you’ll ever earn!

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Any questions? I’m Vincent Hicks, a CPA based in the Cambridge–Somerville area. Reach out at vhicksconnect@gmail.com or (859) 553-0788.

Disclaimer: This column provides general financial information and should not be considered legal, investment, or tax advic