One day two kids compared their savings – Tom had $15 saved in his little piggy and John had $13 saved in his little pig.
They decided to have a race to see who could save the most in a year as measured by % saved more than the other.
At month 1 Tom had $15 saved and John had $13. Tom had 115% saved more than John!
3 months later Tom had $40 and John had $28.. Tom had 143% more saved than John!
6 months later Tom had $25 and John had $17 – both had gotten careless with saving and started to spend more each month than they were actually saving. But, nevertheless Tom had 147% more saved than John.
Finally at the end of the year they opened up the pigs one more time to see who had won. Tom had $16 and John had $8, Tom had set a new record AGAIN! He has reached a savings of a whopping 200% more than John! – things could NEVER be better for Tom financially according to the “numbers”
In 12 months Tom went from savings that were 115% of John’s to the end of the year where he had achieved RESULTS to an of amount 200% of John’s savings.
I think the example does not warrant too much more of an explanation.
Everyday clever marketers, salesmen, financial “gurus” and the like rely on this sort of manipulation of data to paint favorable pictures to prospective clients/business. It is this sort of stupidity amongst large numbers of people that ultimately leads to one things only – Losers end up losing MORE and the Winners end up winning AGAIN!
Like I have written about here previously – seriously consider the data before you end up on the wrong end of the “game of life”.