Does Paying Tax Motivate You To Save?

Discussion in Savings & Investments Plans started by lucykey • Oct 15, 2017.

  1. lucykey

    lucykeyMember

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    Paying tax is considered a demotivating factor to make savings. Like in my country, we pay in proportion to how much you earn. Imagine it's your first salary which you have planned to spend to an extent of saving also, but what you are paid at the end makes one to either limit his spending or saving. This discourages me from making enough saving.

    How much do you pay as tax and does it motivate you to make any saving?
     
  2. Jamille

    JamilleActive Member

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    Our tax code charges tax based on a graduated rate which is applied to the gross salary after deducting personal and additional exemptions. It shouldn't be a demotivating factor to saving money because, as employees, we focus on the net salary as the basis for budgeting. The tax is a mandatory deduction along with contributions for social security, government healthcare, and housing agency membership. All of these have future benefits so these are, in turn, investments into the future, including taxes. The trick is to earn more to cover these forced deductions and meet one's saving and spending goals.
     
  3. harijobs

    harijobsActive Member

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    Paying taxes is a demotivating factor yet it upon which our country's growth depends on. It is a responsibility of the individual to pay his/her taxes. In our country after the introduction of GST, the tax system has become wost making even the availability of common goods difficult for average people. I always try to save some money from my salary after the deduction of taxes even though it is hard, it is the law which cannot be defied.
     
  4. Heatman

    HeatmanActive Member

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    As much as it doesn't feel so good paying taxes, we don't really have a choice in it because it's a mandatory task for each adult in the society. If you don't pay your taxes, you simply being just a liability for the state.

    Now if you pay taxes and don't save up, that would be the worst mistake one could ever make. If you have emergency tomorrow, the state is never going to come on your behalf even if you paid all your taxes. It's probably the money that you saved that is going to be your savior.
     
  5. mildredtabitha

    mildredtabithaActive Member

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    Paying tax will really not motivate anyone especially if you pay high tax than you can spend. We should still try to adjust and save whatever we can. I do not pay tax currently but I know I will when I start working. Having extra jobs like online jobs or personal jobs will help lift the weight especially if you pay high tax from your main job.
     
  6. TheOtherSide

    TheOtherSideActive Member

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    I never do the computation because the company that hired me just deducted the payment for my income tax directly from my salary and it is really convenient since I don't have to do it myself. I am fine with what they do as oppose to doing it myself and since it is what the law mandates, you just have to follow. But even then I am still able to manage my finances. Saving for your future is your primary goal and you should always be motivated because you can not work forever and it's hard to rely on other people.