Let’s say you earn $50,000. After all taxes you take home $40,000. You want a raise.
The boss says, hey you don’t earn $50,000 you earn $65,000.
Oh yeah, show me.
Well, I pay about 8% of your salary for your and your families health benefits, I pay another 6.2% for your Social Security and 4% more for your 401k match and then there is the pay when you are not working, plus sick days. Hey, it adds up.
Great, but what good is it if I can’t spend it?
Well, most of it’s tax free, and it offsets expenses that may come out of your pocket. It certainly will go a long way in your retirement. But I will give you a choice. I will raise your pay to $65,000, but not pay for all that other stuff.
Do we have a deal?