Rocky suggested that my second speech be about saving money. That’s an awesome idea.

I was going to base it on the Rich Dad Poor Dad book. But then I read this review of the book.

He made enough good points that I don’t think I want to base my speech on that book. Maybe I can figure it out myself.

What do I want to say?

Introduction:

Americans are now saving less than nothing as spending outstrips income in 2005, which hasn’t happened since the Depression.

The reasons for this phenominon are complex. One area that contributes to this is marketing. Sage Lewis, a marketer himself, will cast some light on the marketing strategies you as consumers are continually barraged with. And he will give some strategies as how to deal with the onslaught of these marketing tactics.

• What’s this Ned?
• Show a picture of Google search results.
• I put that there.
• My job is to get you to buy things you don’t need.
• Marketing is all about manipulating you. That’s my job and Google’s job.
• Google is starting to give away free internet access. Why?
• In our business culture, children are viewed as an economic resource to be exploited, just like bauxite or timber.
• Mothering: Why They whine : How Corporations Prey on Our Children
• “Nagging falls into two categories,” Cheryl Idell explains. “There is persistent nagging, the fall-on-the-floor kind, and there is importance nagging, where a kid can talk about it.”
• There is virtually no economic decision that you make in this country that hasn’t been massaged, manipulated and exploited by a marketer who understands your psychology, your fears, your insecurities.

• I want to talk with you about some of the psychological tools I as a marketer use to manipulate you.

• Talk about the six buying motives with pictures of marketing tactics featuring each of the 6 Basic Buying Motives.

6 Basic Buying Motives
1. Profit and Gain (Save money; economy; profit)
2. Fear of Loss (Safety; protect property, health, or loved ones; future security; save time; prevent loss; long wear; guarantee).
3. Pleasure (Comfort; convenience; enjoyment; admiration from others; luxury; good health; affection; sexual attraction; save time; good food and drink; good housing; beauty).
4. Avoidance of Pain (Protection; relief of pain; security; less work; safety; good health; no worry; become more attractive).
5. Pride (Desire to possess; advance in sill; self-improvement; style; beauty; high quality; latest fashion; prestige).
6. Desire for Approval (Social acceptance; affection; learning; admiration; prestige; imitation).

• Get some points from “How to mind read your customer” by

  David P. Snyder – 4 Behavior Types:

  • Drive or Determination
  • You must remain cheerful, non-emotional, direct and firm. They will always be trying to test your emotional strength from the moment you walk in the room. Because Driven people are fundamentally insecure, they need you to let them know that you know how busy and important they are and how valuable their time is. You know a driver when you see one.
    
  • Interest in people (also known as influencing ability or sociability)
  • The very first thing you have to do with them is let them know you like them and would like to be their friend ? and their potential friendship will mean more to you than business. Keep things light, fun and full of spark. Ask them many questions about themselves. They live to bond. I’m one of these people
    
  • Steadfastness
  • They have high standards for customer service. They expect respect and honesty. Treat your customers like you would treat your family. They hate slick salesmen, dishonesty, deceit. You must mean what you say and say what you mean. Be patient. Develop a sense of trust. Show integrity and a work ethic. A lot of Republicans are Steadfast.
    
  • Conscientiousness
  • They are bothered by willful ignorance. You want them to feel safe and to trust you. You can only motivate them by toning down your level of enthusiasm. Give the feeling that everything is proceeding in a calm, controlled, careful and orderly fashion. You must be ethical. They cannot feel pressured to make decisions. The service must help improve accuracy, precision and efficiency. You must maintain an aura of strict business. They love the word ?Clarify?. My wife is this kind of person.
    

• It’s all an illusion. It’s all crap. None of it’s real.

What can you do about it?

1. Realize that you are being manipulated at the most base level.
1. Marketers want you to feel afraid, insecure and needy.
2. That want you to feel pain so they can fix it.
2. Make a list of things you want to buy in the next 6-12 months.
1. Make a savings plan to buy these things. Only buy them with money you have saved.
2. Refer to your list when the buying impulse strikes.
3. When you feel a strong urge to buy something do these two things
1. Make a CBA
2. Wait 3 days before you buy.

• Look at clippings for investment articles.
• Vanguard.com
• Forbes magazine has named 24 Vanguard^? mutual funds to its “Best Buys” list in its January 30, 2006, issue. Vanguard has the most funds named of any fund family and more than double the number of our nearest competitor. The funds were chosen for their low costs and risk-adjusted performance over one- and five-year periods.
• Look into an Index fund with a life-cycle.
• Ingdirect.com Savings Account for an emergency fund.
• It currently has a 4.75% APY