Working More And Getting Less
Financial Management Making Money

Working More And Getting Less

One of my friends was telling me how a person he knew decided to take on two jobs to earn more income. On paper it sounded like a good idea as the person could be earning say an extra $500 to $1000 a week by doing so. Ironically, that wasn’t really the case.

By earning more income, the person was now placed in a higher tax bracket which resulted in more income tax deductions. Unfortunately, the person ended up working a lot more without seeing the expected financial return. I’ve seen this happen before in other situations as well such as people getting a raise at their job and due to being placed in a higher tax bracket afterwards the gain isn’t so great.

So if your intent is to earn more money, it would be wise to research what the tax brackets are ahead of time to give you a good idea on what he real outcome would be.

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