As we move through life, we are constantly making decisions. Some of those are small, everyday choices like what to have for breakfast or what to watch on TV. But we must also make much larger decisions about our careers, family and relationships, or our finances, for example.
Our ability to make good decisions in these important areas can have a significant effect on our quality of life and the outcomes we experience. However, we are often naturally inclined to make decisions based on what makes us feel good right now, or whatever choice seems easiest.
The problem with this is that it often leads to short-term thinking and sub-optimal decision-making. For example, imagine you are deciding whether to make an impulse purchase or put that money into a savings account instead. If you choose the option that makes you feel good right now, you would likely make the purchase.
Yet, if you decided to save the money, you may be more likely to meet your long-term financial goals. As a result, by making a more measured decision and bypassing short-term gratification, you may reap larger rewards later in life.
As such, honing your decision-making skills may help you improve your life now and in the future.
Read on to learn five powerful tips for better decision-making.
1. Brainstorm your options
Before making a decision, it may be useful to brainstorm all your options. This can help you avoid rushing into a poor decision before you have considered all the possibilities.
You can do this by creating a simple list and writing down as many choices as you can think of. It is likely that you will discount many of these choices very quickly, leaving you with a shorter list of potential options.
When you have this list, it could be beneficial to think about the short- and long-term implications of each decision.
2. Be honest with yourself
Many of us tend to rationalise certain decisions with flawed logic or adages such as “life is short” because we know that we are making a poor choice.
As such, it is important to be honest with yourself about your decisions and the motivation behind them.
For instance, are you taking the easier option, even if you know that it is not the best decision in the long term? Perhaps you are making a decision you know will be popular with others around you, even if you don’t agree with it?
By being honest with yourself about why you are making a certain decision, you may find it easier to be more objective.
3. Use an objective sounding board
Our emotions often influence our decision-making, and this can make it difficult to think clearly.
When you are making a decision that affects your family or relationships, for example, it can be challenging to remain objective and make optimal choices.
In these situations, discussing the decision with somebody else who is less involved can be incredibly beneficial. They can act as an objective sounding board and offer their advice without letting the emotional aspect cloud their judgement.
When a trusted friend or family member does give you their input, it is important to take it on board, even if it is not what you wanted to hear. After all, you are consulting them because they can offer an alternative point of view.
4. Ask your future self
Asking your future self what they think about a decision is a simple exercise that can give you more perspective.
If you are deciding whether to accept a new job or not, for instance, how would you feel 10 years from now if you turned it down? Would you regret not taking the opportunity and feel as though you were stuck, or would you value the stability?
You may find that considering how you might feel 10 or 20 years from now helps you think more carefully about the ramifications of a decision.
5. Wait a day
Impulsive decision-making often leads to bad choices because you don’t think carefully about the long-term implications.
Consequently, it can be useful to give yourself time before making any major decisions. Follow some of the other steps on this list and weigh up your options, but before you make a final decision, simply wait a day.
Often, when you give yourself some time, you may find that your opinion changes or you realise that a certain choice isn’t perhaps as sensible as you first thought.
Get in touch
We can’t help you with all of your major life choices, but we are here to guide you when making decisions about your finances.
Please get in touch to find out how our team of VouchedFor Top Rated planners could help today.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.