The Benefits Of Saving

I had to give this speech to my class tonight, and thought I would post it.  It’s the very first outline I have ever organized! Usually I just write it as I feel it, when I feel it, and then organize it later.  I did get an A+ for my presentation so I am excited. I read a little bit more than I wanted to but overall I did great!

My next speech will be a ceremonial speech, and I think I am going to do that speech as if I have just become debt free.  That will certainly be something to celebrate!  Enjoy!

The Benefits Of Saving

Specific Purpose Statement: I would like to inform you of the negative effects that financial stress can cause and what you can do to prevent it.

Central Idea: Although it is more fun to get what you want now, saving money to achieve your goals as an alternative, provides therapeutic benefits that can give you more time to enjoy life, and less time loathing it.

Introduction

I. Imagine this- We’re newly married, and just moved into our very first house.

A. We had a plumbing nightmare occur that ended up costing us over $2,000, not to mention they dug up our front yard.

II. With absolutely no savings in sight, we ended up borrowing the money to pay the plumber.

A. I can still remember just how stressed we were at the time.

III. One thing that we have learned since then is how valuable having a savings account is, to cushion the blow when life happens.

A. If you are breathing right now then you know that life happens at the most inconvenient time, so you must be prepared.

B. As a college student, I am sure you can relate to how painful it is when it’s time to pay tuition or buy those expensive books, and you have to borrow money or spend the light bill to do it.

Transition: (Can you remember a moment in your life when an unexpected event caused you financial stress?  I bet you can, and I bet you remember thinking to yourself- how in the world am I going to deal with this?) 

Body

I. 7 out of 10 people say they are “very stressed” about money.

A.  Financial stress can negatively affect your health in many ways.

1. It can cause unhealthy coping behaviors in order to deal with anxiety.

a. Smoking, drinking, and overeating are just a few coping mechanisms.

2.  It can leave you with less money to properly take care of yourself.

a. People who are under stress tend to cut corners in areas such as health care.

3.  Financial stress can lead to problems sleeping.

4.  Unhealthy emotions can also be triggered by stress related to money.

B.  Financial stress causes marital problems which can lead to divorce.

1.  According to divorcereform.org, financial problems are listed as one of the most common causes for divorce.

Transition:  (Now that you understand the problems associated with financial stress, let’s look at how the benefits of saving money can allow you to breathe a little easier.)

II. Financial preparation by saving money can not only reduce stress, but it can also ensure a better quality of life.

A.  When you have an emergency fund to cover unexpected emergencies, you can easily cover the expenses without the added stress of where the money will come from.

1. Money magazine reports that 78% of us will have a major negative event in a given ten-year period.

2.  49% of Americans could cover less than one month’s expenses if they lost their income.

B.  By planning for your retirement and saving early on, instead of relying on the bankrupt promises of Social Security, you can experience a greater quality of life.

1.  Nearly two-thirds of retirees count on Social Security for most of their retirement income.

2. 39% of Americans aren’t saving for retirement!

C.  By saving for big purchases instead of putting them on credit, you can avoid debt, and use the money saved in interest to add to your savings account.

1.  Using debt for purchases ensures that you will pay more than if you used cash.

a. A Dun and Bradstreet study found that when you use plastic instead of cash, you spend 12-18% more because spending cash hurts.

b. You also pay more over time in the form of interest, for the privilege to buy something you do not have the money for.

D.  One of my favorite benefits that come from saving money is the opportunity you will have to give in order to help others.

1.  If you have 3/6 months of expenses saved up, no debt in sight, and continue to save for retirement, giving someone a gift instead of a loan is actually a possibility.

Transition:  (Be sure to keep this in mind the next time you’re out, and on impulse decide you “need” some new stuff.) 

Conclusion

I.  Saving money is a priority and when you have a security blanket, because you committed to also having a plan, you’ll have no reason to be stressed out about money.

II. Retire with financial peace, and live out your ending years with dignity, and without constraint.

III. Your new plan to save money can change your life!

IV. You may be familiar with the old story about the ant and the grasshopper.

A.  The question is do you want to be the ant, or the grasshopper?

1.  The ant prepares first, and eventually enjoys his rewards.

2.  The grasshopper lives for today and has lots of fun, but when the snow comes he realizes his mistake.

B.  Either way, you will have to be both, so why not make the decision to be the ant now, so later you can be the grasshopper?

1. Nobody wants to reach retirement and deal with the stress of having to work like an ant!

Bibliography

1. Crouch, John. “What Are The Most Common Causes Of Divorce”.  Divorceform.org. 2005. Jun. 26, 2009. <http://www.divorcereform.org/cau.html>
2. Ramsey, Dave. Total Money Makeover.  Nashville, TN: Thomas Nelson, 2007.
3. Ramsey, Dave. Dave Ramsey’s Financial Peace University Workbook. Brentwood, TN: The Lampo Group, Inc., 2007.
4. Scott, Elizabeth. “Financial Stress – How It Affects You and What You Can Do”. About.com. Oct. 17, 2008. Jun. 27, 2009.  <http://stress.about.com/od/financialstress/a/financialstress.htm>