4. Same amount of savings but different approach

Imagine you go to a utensils’ store and plan to buy a teapot that costs 200. You come to know that another shop just a kilometer away is selling the same product at 100. Would you drive a kilometer to save 100?

Again, imagine yourself in a furniture shop that is selling a dining table at 10,000. However another shop one kilometer away is selling a table at 9,900. Would you now drive another kilometer to save 100?

Most of the people will say yes to the first and no to the second example. That is because on the teapot, one can save 50 percent while on the table the savings is only 1 percent. Although the amount that can be saved is same, the percentage of savings seems more valuable than the actual amount.

The Solution

Never compare the percentage of savings and always remind yourself of the amount that can be saved. Every penny matters to make great savings. Always picture your savings in cash as that will encourage you to save at every possible occasion.

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