"A penny saved is a penny earned"

Working is good! Other than being compensated and having my own spending money for a change, I also get the chance to meet different types of people from all walks of life.

Here's a Puerto Rican guy who works for the TTC (Toronto Transit Commission). As a bus driver, he earns approximately $70,000, a single dad with 2 adopted teenage daughters and a sister on disability. His sister has her own source of income. Taking care of a disabled person, the government gives you a big tax credit and because of this, he is getting good refund. But despite his "high" income, he still needs "instant refund" for his tax return.

Instant refund meaning my company will issue him a check for his tax refund instead of waiting for it from the government since their processing time is a minimum of 10 working days. And because it is "instant refund" we charge more (based on the refund amount).

Here's another chinese guy whose annual income is a little over $100,000. He is married with 2 kids, wife is not working because one of their kid is autistic. Despite having that much income, he also wants "instant refund." I told him that refund would take 10 business days only and he said he can't wait as he needed the money now. Again, he is getting a lot of tax credit being the sole bread winner of the family with a disabled child.

My question is: when will it be enough? How much income is enough to say that we can live comfortable and stay out of debt? These people have a good source of income and yet they needed money now (obviously waiting for 10 days is too long for them)!

A sample computation of our fees for instant refund:
For a refund of $1000, we charge $80...
a refund of $3000, we charge $180...
a refund of $5000, we charge $280...

If you are getting a $5000 refund, would you do instant refund? or would you rather pay around $60-100 tax preparation fees and wait for the refund in 10 business days? I wouldn't do instant refund.

I always tell my kids that "a penny saved is a penny earned!" And I've always believe in this.

"Not spending money has the same result as earning money, so to save a penny is the same as earning a penny."

5 comments:

MrsPartyGirl said...

i think, unless a person has his priorities in line, no amount of money (or fame or power, for that matter) will ever be enough.

that's a really great lesson youre teaching your kids. good job! :)

JO said...

Hi Meeya,

Human nature. Most of us never get satisfied with what we have. So the more we earn the more we spend too. ",)

evi said...

mankind will never be contented

Kevin Lam said...

Maybe the calculated refund amount is much higher than what they are expecting, so for them it is better to get that amount now than wait for 10 days. From their mind, they thought that Gov't may recalculate it again at ma-shrink ang amount. so, it's better to get it now.

ika nga, mas safe ang pera sa pocket mo kaysa sa pocket ng iba.

JO said...

Hi Evi,

That's true! We should all just be happy with all the blessings that comes our way, big or small.

Hi Lam,

For some people, you've said it right! But we need to be wise with our hard-earned money.