Flickr Photo Credit: Hashmil
Calculate the percentage of savings between two different prices on an item rather than assume a “few cents more” doesn’t matter. Why? Because it does matter.
The difference between a brand item that costs $1.20 and a generic equivalent costing $1.00 is 20%. If a bank offered you a chance to earn 20% on your liquid cash, wouldn’t you pay attention? When the price difference or savings you are considering is a percentage rate you’d be thrilled to receive on your savings account or CD’s, then you should be equally thrilled to obtain the same rate in purchase savings.
One thin dime may only be 10% of a dollar, but wouldn’t you love to have 10% of your annual income left over at the end of the year to channel as you wish? When you take into consideration these monies also earn additional interest, the rate goes up even further. Over time, this amounts to major bucks for your financial goals, whatever they may be.