If you’re anything like me (congratulations if you are), you frequently bookmark webpages that you find interesting and/or useful because you think you’ll refer back to them one day. It’s a nice thought, but it rarely happens because we’re always too busy.
Before I decided to have a clear out this morning, I had over 200 webpages bookmarked. As I was sifting through the pages I couldn’t fathom why I had bookmarked half the pages that I did. However, on a few occasions, I was reconnected with some nice articles, one of which I’m going to share right now…
I read the article on the Lovemoney website over a year ago. Admittedly, I’m not an avid reader of the website. Albeit, fate connected me with this particular article. It’s nothing amazing or ground breaking, but I liked how such a simple and practical idea was put across. It’s the simple things, innit?
The article is quite long, and I only really liked one section of it (I didn’t dislike the other sections, but this one bit just stood-out), where the author explains the difference between the value of a pound and the value of a percentage, and how we get it wrong.
Let’s say you want a DVD. In the shop down your road it costs £20, but with a short drive into town you’ll have it for £10, saving a massive 50%. So you decide to drive into town.
The next day, you want a new TV. On your street it costs £1,000, and in town it’s £990. At £10 less, that’s just a 1% saving, so this time you don’t drive into town.
Somewhere, you’ve made a mistake. The saving in both cases is £10. So do you want that £10 or don’t you?
Love it. I want that £10! I just needed reminding.
This analogy applies to every consumer (which is all of us). Somewhere along the line we forget the real value of the pound, didn’t we?
I don’t like buying cheap junk, whether it’s for myself, or any of my buy-to-let properties. However, I do like the idea of saving money where it can be saved. I’m pretty sure if we put the value of a pound before the value of a percentage, overtime our balance sheets would look a lot healthier.
This is probably a pointless blog post to most of you, but it’s a nice reminder to myself, so I thought I’d quickly jot it down. However, I hope it reminds at least one of you out there what the real value of a pound is, even when purchasing something as basic as a toilet seat.
Disclaimer: I'm just a landlord blogger; I'm 100% not qualified to give legal or financial advice. I'm a doofus. Any information I share is my unqualified opinion, and should never be construed as professional legal or financial advice. You should definitely get advice from a qualified professional for any legal or financial matters. For more information, please read my full disclaimer.