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 simple landlord blogger; I'm not qualified to give legal or financial advice. Any information I share is my opinion based on my personal experiences as an active landlord, and should never be construed as legal or professional advice. For more information, please read my full disclaimer.