yesterday we attended our weekly seminar from Dave Ramsey. It was entitled: Buyer Beware
One of the points that stuck out at me the most was how effective marketing schemes are. Dave demonstrated how we get duped by scientifically conjured techniques from marketing agencies by things like eye-catching product labeling and repetitive advertising. We say, “that stuff doesn’t work on me” … O, yeah?!? Have it your _____. Melts in your mouth, not in your ____. Repetition in advertising works. (Who is Ron Paul anyway?)
He also gave some useful tips on making major purchasing decisions (over $200) like waiting overnight, consulting with your spouse, research and know about the product you are planning to buy, know the opportunity cost (if I spend $1000 on this cruise, then I can’t invest it in my mutual fund), and know whether the purchase would be filling a want or a need (either are okay to fill, the point is to be honest with yourself). Practising these five disciplines are a sure fire way to keep us from making stupid and impulsive purchsing decisions that we will regret.
More tips from Dave:
Beware of the following as a consumer…
- 90 Days Same-As-Cash
- Zero-interest loans
- All credit cards
- “Let me check with the manager.”
- Impulse product offers
- High-pressure sales tactics
- Get-rich-quick schemes
- Zero-risk investments
- Cosigning loans
- Anything that sounds too good to be true