In our fifth lesson for Financial Peace University, Dave teaches us how businesses get their messages into our subconscious through great marketing. Companies use every method they can to aggressively compete for our money. In order to avoid falling into their traps including financing, convenience, ads, and product positioning we need to have a plan for our money and understand their methods.
Here are some strategies for making wise buying decisions that Dave taught during the lesson:
- Always wait overnight before making a major purchase (anything over $300 or an amount you and your spouse agree on depending on income). Proverbs 14:29 tells us, "He who is impulsive exalts folly."
- Realize that no amount of stuff will buy you happiness. It can buy fun, but not happiness. So consider your motives for buying the items and realize it is normally not a need.
- Never buy anything you do not understand.
- Consider the "opportunity cost" of making the purchase. Ask yourself what else that money could be used for.
- See the counsel of your spouse (or accountability partner) or other people who trust for advise. (See Proverbs 31:10-11)
- Always tell the whole truth. Don't lie!
- Use the power of cash.
- Understand and use "walk-away" power.
- Learn to Shut Up!
- Say "That's not good enough"
- Be able to recognize when the "good guy - bad guy" technique is being used against you and don't fall for it.
- Master the "If I take away" technique.