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What is Threshold of Perception for Money?

In physical terms, the threshold of perception is the limit at which you start to feel something. A change of a tenth of a degree might not make you feel warmer, but you could feel a change of a full degree. Some people are incredibly sensitive and aware to such changes, others are not.

In many ways, people have similar thresholds with regards to money. You can see it in yourself when there is a small error on your bill, or you forgot a coupon for something you wanted to buy. For some people, every single cent is important, where for others, amounts of up to a few dollars in either direction aren’t worth noticing.

If you have a high threshold of perception for money, you need to be aware that those little amounts can add up. The few dollars in bank fees each month might not seem worth your notice, but if you let it slide for a few years, it can easily eat up hundreds of dollars. Unclaimed expenses are another issue. It might not seem worthwhile to pursue claiming each insurance expense or seeking reimbursement for every work-related expense, but those costs add up over time, taking hundreds or thousands of dollars that could be put to more beneficial uses.

So, work at lowering your threshold of perception when it comes to money. It might seem silly when you look at the individual dollar amounts, but when you add them up over time you will definitely see results. Taking the time to notice the smaller amounts can be time well spent.

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