I don’t want to get political here, but I do want to point out something I came across that is very interesting. There is a group of war protestors who refuse to fund the war through their federal income taxes – so they’ve decided to stop paying those taxes. And they’ve figured out how to do it legally.
The basic idea for this “legal tax refusal” is to get their income below the taxable level – live on $8,450 a year, or less. The group points out that you can raise that number to $12,450 if you contribute to an IRA, but that extra $4,000 isn’t available to be spent.
Anybody, regardless of their political leanings, can glean some important finance concepts from the group:
- It is possible to live on very little, and the group even provides tips on how to do so. These tips are helpful to anyone trying to reduce their expenses, regardless of income.
- Even on a minimal income, it’s still possible, and advantageous, to contribute to a retirement fund.
Do you think you could live on less than $1000 a month?