8.23.2013

Good to Know: How to Determine Percentage of Savings


It is seems to be very common to hear a person say "today I save 55% on my total bill". This is usually followed by a big smile or a very confused looked. If you are the portion that gives the confused look this post if for you.

When shopping on a budget it is important to understand how to determine the percentage of savings on each of your shopping bills. Here's why:

  1. Each saver should set a goal they would like to save. For example a person just starting out with coupons or shopping sales should aim to save 40-50% off their total purchase. This will increase with experience.
  2. Knowing the overall percentage of savings boosts a savers confidence. If you look at a receipt and see that you spent $60.00 and saved $35.00 that may not look like a Win. However, if you calculate the percentage you will see that that is over 50% savings and a great job!
  3. Many times you have to pay full price for high necssesity items, like bread, milk, eggs, and even in-season clothing. The goal is to balance this and use coupons combined with sales to lower the cost and increase savings. When doing this your percentage of savings will be higher and the full price milk and eggs will not seem so expensive.
How do you determine percentage of savings? It is a simple math equation really.



Here's an example:

Total paid at CVS =4.86
Total Saved (amount on the bottom of receipt) =33.60
Total Value= (4.86+33.60) 38.46
Percentage of savings + 33.60/38.46 = .87X 100+ 87%

I hope this little tip has helped and that everyone is setting a percentage goal to save at the store!