Re: Money saved
I read in a book (a very good book, by-the-way) an example of how people think about money:
Say you are going to buy a lamp. You go in a store and you see the lamp for $100. You know there is a store down the street that has the same exact lamp for $60. Do you go to the other store and buy the lamp and save $40? Most people probably would.
Now, say you are buying a dining room suite. The price at the store you are in is $4,600. You know you can get the same suite for $4,560 down the street. Do you go to the other store to save $40? Most people say no.
Why? Why is that? You are saving $40 either way. Why do we value the $40 saved on the lamp greater than we value the $40 on the dining room suite?
I'd be interested to hear what you think.
Oh, the book is called "Why Smart People Make Big Money Mistakes and How to Correct Them" by Gary Belsky & Thomas Gilovich. It is a MUST READ!
JLP
oooh, I noticed I'm a THIRD grader now!
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