Friday, October 19th, 2018
Let's play a quick game. You're in the market for a blender, and you've found the perfect one! It's $100 and you're at the self-serve checkout getting ready to scan it. Just before you do, a friend of yours taps you on the shoulder and tells you the exact same blender is on sale for $50! It's at the competitor's store two blocks away.
Do you go? Of course you do!
You did a quick mental calculation and realized that's a 50% savings! Certainly worth a quick trip!
Two weeks later, you're shopping for a new sound system for your condo.
You've spent nearly an hour narrowing down your options and feel great about your choice. You're getting ready to insert your debit card to pay the $1,175 at the till, and just as you do, your friend again happens to be in the store and taps you on the shoulder. Your savvy shopper friend tells you that you can get the exact same system at the competitor's store for $1,125. It's only a few blocks away as well.
So, the question again is: Do you go?
You do a quick calculation in your head and realize that's only a small percentage of savings. Actually, you don't do the math at all, because it's well, too math-y! It's less than 5%. You decide that unlike the blender, this isn't worth pursuing. If you noticed, in both examples, the savings was $50. If you would go for the less expensive blender in the first example, why wouldn't you for the costly sound system? It's the same $50.
Retailers are counting on you paying attention to what works more in their favour. That new car is only $104 per week. You're only paying 3.75% on your line of credit, so why not renovate your kitchen now?
Sometimes we look at numbers differently or ignore one completely. But even when we're mindful of this flaw, it can get the best of us. The best thing to do is slow down, crunch the numbers when making a purchase in the future, and be sure to calculate and factor in what your time is worth and the joy factor of life, if you're chasing a discount.
This article or video (the “Content”), as applicable, is provided by independent third parties that are not affiliated with Tangerine Bank or any of its affiliates. Tangerine Bank and its affiliates neither endorse or approve nor are liable for any third party Content, or investment or financial loss arising from any use of such Content....
The Content is provided for general information and educational purposes only, is not intended to be relied upon as, or provide, personal financial, tax or investment advice and does not take into account the specific objectives, personal, financial, legal or tax situation, or particular circumstances and needs of any specific person. No information contained in the Content constitutes, or should be construed as, a recommendation, offer or solicitation by Tangerine to buy, hold or sell any security, financial product or instrument discussed therein or to follow any particular investment or financial strategy. In making your financial and investment decisions, you will consult with and rely upon your own advisors and will seek your own professional advice regarding the appropriateness of implementing strategies before taking action. Any information, data, opinions, views, advice, recommendations or other content provided by any third party are solely those of such third party and not of Tangerine Bank or its affiliates, and Tangerine Bank and its affiliates accept no liability in respect thereof and do not guarantee the accuracy or reliability of any information in the third party Content. Any information contained in the Content, including information related to interest rates, market conditions, tax rules, and other investment factors, is subject to change without notice, and neither Tangerine Bank nor its affiliates are responsible for updating this information.
Tangerine Investment Funds are managed by Tangerine Investment Management Inc. and are only available by opening an Investment Fund Account with Tangerine Investment Funds Limited. These firms are wholly owned subsidiaries of Tangerine Bank. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.