X > Y
Personally, I’ve noticed this pattern during financial learning, but over time it became clear that it’s not limited to money. Simple math comparisons are used in many parts of life to persuade people to take one side or another. When numbers are turned into percentages, they often appear even more convincing.
But here’s the question: Why is 5% not always better than 4%?
Easy Answers
It’s natural for human beings to look for simple answers, especially in today’s fast-paced world.
There’s not enough time to deeply study every topic as the result online guides, search engines or AI tools are often used to get quick explanations.
The ideal answer is short, clear, and easy to process.
Modern life is overloaded with information - through news, social media, work, or even personal interests. Some of it is actively consumed, often at double speed, to stay on top of everything. So it makes sense that answers are also expected to be fast and easy - like 2X version of the intended decision.
The Grey Area
Chasing simple answers can lead to forgetting that most decisions don’t have a clear yes or no outcome. The result often lies in a grey area between two extremes and the truth is rarely just black or white.
Oversimplifying important topics can lead to missing key details - ones that may have a much bigger impact than the numbers alone suggest.
Finance
This way of thinking often shows up in financial advice, where things are simplified into this vs. that decisions.
Take a common example: Should a mortgage be paid off early?
The usual argument compares a guaranteed mortgage interest rate (for example, 4%) to a possible investment return (say, 10%). That sounds like a clear choice - why pay off a 4% debt when 10% gains are possible?
But that answer ignores:
- The total amount saved by paying off the loan early
- Long-term housing security
- The chance to invest more freely once the mortgage is gone
- The peace of mind from having one less monthly bill
Other common examples include rent vs. mortgage or the advice that skipping daily coffee and investing that money will make someone rich. These suggestions use percentages to look logical, but real life isn’t that simple.
Life Decisions
Another example when 10% salary increase is offered, but it requires switching from a fully remote job to working in an office.
On paper, 10% is better than 0%. But when including commuting costs, food expenses, stress, and time lost, the situation may change completely. The extra pay could be reduced or even feel like a downgrade once everything is factored in.
Are Percentages to Blame?
Fast and easy answers are appealing as there’s often little energy left to dig deeper, so simple numbers become shortcuts.
But percentages aren’t the problem - they’re just tools. They often get pulled into attention-grabbing comparisons. A weekly coffee treat won’t make someone poor, just like investing that small amount won’t automatically create wealth, especially when that return isn’t guaranteed.
Final Thought
It’s not enough to rely on percentages alone. For any decision - money, work, or lifestyle - alway look beyond the numbers.
List the pros and cons and consider things like:
- Time with family and friends
- Hobbies
- Mental health
- Daily stress levels
- Freedom and flexibility
These factors can be more valuable than a 10% increase that brings extra stress, long commutes, or less personal time - even if it comes with a free mental health subscription to help manage the stress it created.