Ever wonder if it's worth it to save $.10 on a can of vegetables, shop the sales, coupon?
Yesterday I mentioned saving is done best by thinking in percentages instead of pennies and dimes. Let me break it down even further...
Say you want a $10 item. You look around on ebay, craigslist, and the yardsales in your area...you find and purchase it for $2. How much did you save?
The simple answer is $8. But, that's not correct. In order to spend the additional $8 (if you're in, for example, the 20% tax bracket), you would have to earn $10. On top of that, you have to pay additional sales tax. You didn't just save $8, you saved $10.56.
How many of us would be happy if our money could earn that type of interest in the bank?
Furthermore, the time you would have spent earning the $10.56 could have been spent looking for more sales. :)
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