How to Save Money

Buying an MP3 Player

You're buying a cheap MP3 player. You have two options:

• Option A: Buy one a mile away @ $40
• Option B: Buy the same one twenty miles away @ $20

"Option B, of course! High-five!" you scream. Why?

1. "It's 50% off!"
2. "I'll save $20!"
3. "I'll net $10 in extra gas!"

Good. We've established that you're a thrifty, financially-wise person. High-five-to-you.

On your way home...

As you're driving back listening to your new mp3 player, Tito and Primo start pointing and laughing at your sissy Pinto. "Mutha-!@^@!" you start crying like a little bizattchi. "But hey, that's okay. I've been eyeing that new V8 M3 anyway. Tow-dow!"

Buying a New Car

Your two options:

• Option A: Buy it a mile away @ $50,020
• Option B: Buy it twenty miles away @ $50,000

"Option A, of course! It's only a $20. What's the big deal?! I'd rather not drive the extra miles. Yay!" But, wait -- check that human psychological phenomenon:

• You'd rather drive twenty miles to save $20 on Item A.
• But, you'd rather not drive twenty miles to save $20 on Item B?

It's probably because with big ticket items, you think:

• "Hey, I'm not saving a lot of money percentage-wise."
• "Why worry about the 0.01% of the total price?"

But You Wait Just Right There!

Pinpoint the subtle difference for a bit:

• Saving $20 on a $40 item.
• Saving $20 on a $50,000 item.

Wait for it... Wait for it...

• You're saving the same !@^^^% thing.
• You're saving the same !@^^^% thing.
• You're saving the same !@^^^% thing.
• You're saving the same !@^^^% thing.
• You're saving the same !@^^^% thing.

Tow-dow.

The Trouble with Big-Ticket Items

People buying new cars think all those "little" $20 first-aid kits, $200 trunk mats, $300 covers, and all those other little yaddas are frickin' steals. That's how people and businesses become poor:

1. First, they buy something big.
2. Then, that big-ticket majigga desensitizes them to "littler" $300 items here, $500 items there, $450 over there.

"Buying those little buggers won't affect me much!" Bankrupteezy.

Do a Reverse Ownage Instead

Johnny's about to sell your company $35K worth of computers. Then, he tries to upsell you some accessories. Politely tell him no -- and do this:

• Can I get a $20 discount on the order? It's only $20.

Win. (Sure, win even more by upping the discount. Remind him it's "puny" compared to the total.)

Heed the little buggers.

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