Making decisions is a human ability. You don't really find this ability in any other life form. Humans have been gifted with higher intelligence that allows us to consider and weigh options, and make a decision based on facts, circumstances, desired outcome, and any number of other factors. Still, most of us make our decisions based on pure emotion - especially when it comes to money.
Decisions are not the same as intentions. You may have the best intentions in the world, but if there is no follow through, then your intentions get you nowhere. True decisions are preceded by careful thought and backed by action.
Some decisions are easy to make, either because the consequences are not that great, or because you have made the same type of decision before. Other decisions are more difficult, either because they are new to you or because the consequences of making a poor choice are high.
If you are reading this article, it's likely that you have made some poor decisions in the past concerning money and you're hoping to avoid making the same type of mistakes in the future. Following are three tips to take your money decisions out of the emotional realm, and into the realm of reality.
Look at the Big Picture
If you haven't set major life goals, now is the time to do it. By setting goals, you have a guideline for your life and your decisions. If you are just "winging it" and improvising your way through life, then I can pretty much guarantee you that you are making emotional decisions and not fact-based, goal-oriented ones. Don't get me wrong. You have to involve your emotions in the decision-making process; you just can't let your emotions rule you. Emotions lie.
If you have set some long-term goals for your life, congratulations! You are ahead of many. Whenever you are trying to make a difficult decision regarding finances, view the decision in terms of your long-term goals. Will this decision bring you closer to or further away from your goals? This is especially useful when trying to make a decision about a major purchase. Honestly, not very many major purchases will bring you closer to a long-term goal. Home ownership is one of the few exceptions. Equipment required for business is another exception.
Evaluate Your Options
For every possible choice, there are alternatives. Try to identify at least three for the decision you are facing. Then go on a fact-finding mission. Research each of your options and gather as much information on them as possible, then compare your options. Finally, get someone else's opinion. Now, who you ask is equally important as asking. You don't want to go to your financially challenged cousin who doesn't have two pennies to rub together and ask for financial advice. You don't want to go to your sister who is on her third marriage to ask for relationship advice. And you don't want to go to your uncle who has started three businesses - all of which have failed - to ask for business advice.
Look for someone you feel is credible and experienced in the area you are researching and ask him for his opinion. Then be open to hear it. He will hopefully have knowledge and insight that will help you see the situation differently so that you make a wise decision.
Sleep on It
Sometime you have to move quickly in order to not miss an opportunity. But, honestly, when you feel pressured to decide now - especially if that pressure is coming from someone else that will benefit from your decision - you should probably wait. Most time-sensitive opportunities really aren't time sensitive at all. That's a marketing ploy you need to recognize. It's pretty rare when you don't get a second chance at that "One Time Offer."
You see, sales people and marketers are taught to "strike while the iron is hot." A car salesman knows that once you leave the showroom floor saying "I'll be back," you won't come back.
I can tell you that it's much easier to sleep on a big decision and then make the right one than it is to deal with buyer's remorse and try to get out of a bad decision you've made it. Always take the time to think your major decisions through, sleep on them, and see if you still feel the same confidence the next day.
Article Source: http://EzineArticles.com/?expert=Cheree_Miller
Decisions are not the same as intentions. You may have the best intentions in the world, but if there is no follow through, then your intentions get you nowhere. True decisions are preceded by careful thought and backed by action.
Some decisions are easy to make, either because the consequences are not that great, or because you have made the same type of decision before. Other decisions are more difficult, either because they are new to you or because the consequences of making a poor choice are high.
If you are reading this article, it's likely that you have made some poor decisions in the past concerning money and you're hoping to avoid making the same type of mistakes in the future. Following are three tips to take your money decisions out of the emotional realm, and into the realm of reality.
Look at the Big Picture
If you haven't set major life goals, now is the time to do it. By setting goals, you have a guideline for your life and your decisions. If you are just "winging it" and improvising your way through life, then I can pretty much guarantee you that you are making emotional decisions and not fact-based, goal-oriented ones. Don't get me wrong. You have to involve your emotions in the decision-making process; you just can't let your emotions rule you. Emotions lie.
If you have set some long-term goals for your life, congratulations! You are ahead of many. Whenever you are trying to make a difficult decision regarding finances, view the decision in terms of your long-term goals. Will this decision bring you closer to or further away from your goals? This is especially useful when trying to make a decision about a major purchase. Honestly, not very many major purchases will bring you closer to a long-term goal. Home ownership is one of the few exceptions. Equipment required for business is another exception.
Evaluate Your Options
For every possible choice, there are alternatives. Try to identify at least three for the decision you are facing. Then go on a fact-finding mission. Research each of your options and gather as much information on them as possible, then compare your options. Finally, get someone else's opinion. Now, who you ask is equally important as asking. You don't want to go to your financially challenged cousin who doesn't have two pennies to rub together and ask for financial advice. You don't want to go to your sister who is on her third marriage to ask for relationship advice. And you don't want to go to your uncle who has started three businesses - all of which have failed - to ask for business advice.
Look for someone you feel is credible and experienced in the area you are researching and ask him for his opinion. Then be open to hear it. He will hopefully have knowledge and insight that will help you see the situation differently so that you make a wise decision.
Sleep on It
Sometime you have to move quickly in order to not miss an opportunity. But, honestly, when you feel pressured to decide now - especially if that pressure is coming from someone else that will benefit from your decision - you should probably wait. Most time-sensitive opportunities really aren't time sensitive at all. That's a marketing ploy you need to recognize. It's pretty rare when you don't get a second chance at that "One Time Offer."
You see, sales people and marketers are taught to "strike while the iron is hot." A car salesman knows that once you leave the showroom floor saying "I'll be back," you won't come back.
I can tell you that it's much easier to sleep on a big decision and then make the right one than it is to deal with buyer's remorse and try to get out of a bad decision you've made it. Always take the time to think your major decisions through, sleep on them, and see if you still feel the same confidence the next day.
Article Source: http://EzineArticles.com/?expert=Cheree_Miller
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