Economies of scale

People often say to me, admiringly, I like to think, "Laura, we can't believe you work in finance. You were really, really bad at maths at school. Tell us lesser mortals how you manage it!"

Well, Ploggers, listen to the following conversation so I can give you a quick lesson in economics.

Me: I saved £35 today!

TheBloke (TM): Oh, how? Because I can't help but notice you're carrying a bag with new shoes in.

Me: Exactly. I saw these shoes for £70, reduced to £35. So I bought them, thus saving £35. Which meant I could then spend the £35 I saved on something else. But I didn't. So I have saved £35.

TheBloke (TM): That's not right! That's not how it works.

Me: Of course it is, fool.

Two weeks later...

Me: I saved £180 today.

TheBloke (TM): Oh God, here we go again. I don't want to talk about it.

Me: Listen... there was a lovely silk dress in Whistles reduced from - you won't believe this - reduced from £155 to £25. What a bargain!

TheBloke (TM): Did you buy it?

Me: Well this is the genius part. I tried it on, but it was a bit big and didn't really suit me, so I didn't buy it.

TheBloke (TM): So what saving did you make then? I don't understand.

TheBloke (TM) is a bit simple, despite "technically" being qualified in accountancy, so I had to explain things clearly for him.

Me: The dress originally cost £155. I didn't buy it at that price. Therefore I save £155. Then, I also didn't spend £25 on it when it was reduced. This equals £180. And as I saved so much, I've just bought a Wii Fit and a few other bits and pieces and still have £50 left over. I am great.

TheBloke (TM): (Couldn't really hear what he said, but it sounded like "clucking cupid ditch" maybe. Not sure.)

This, Ploggers, is why I am better at finance than most people.