Making sound financial decisions sits at the base of financial success. All financial advice revolves around that one goal — helping you make healthy financial decisions. It truly is that simple. But making good decisions is far more challenging.
There are measures you can take to make good financial decisions. These steps are easy to understand, but not necessarily simple to implement. Follow them, and you will increase the possibility of making good decisions and having financial prosperity.
1. Be Intentional
We have all taken on certain duties and accepted certain obligations. Allowing these commitments and responsibilities into our lives purposely can help make the right decisions. We understand that a particular decision will impact our commitment, and can use that as a part of our decision-making process.
But we also take on some duties and responsibilities without deliberately doing so. You might decide to live somewhere because that’s where your family has always lived. Or you may think you have to fund your child’s college education without determining if this is something truly important to you. Responsibilities and obligations that are not deliberate can harm your ability to make good decisions.
2. Develop A Strategy for Making Decisions
Surround yourself with people and a solid plan that will help you make sound financial decisions. These ideas can sometimes come in the form of a checklist that you review before you embark on massive expense. A good example is giving your wallet to a trusted family member or friend as you ponder on a purchase decision. Develop a habit of using cash for your expenses. Once you are out of money, you would have developed a system that prevents you from spending. (No cheating allowed).
3. Sometimes be Unintelligent
Not every sound financial decision needs to be a wise financial choice. Your money is meant to provide support in your life. When life calls for a tiny bit of fun, its makes sense to spend some money to enjoy an excellent time. Being intentional is important. It is also important to be deliberate about this. Just know your limits. Make the decision consciously and with control. Going to the movies and buying some popcorn on a whim can be unintentional and still a good decision. Buying an expensive boat on an impulse is a bad financial decision.
4. Be Very Straightforward
Avoid confusing outcomes and decisions. A sound financial decision does not mean you will have a good result. Good decisions can end up badly. And bad decisions can turn out to be good. Remember that the result does not determine the validity of the decision.
It would seem apparent that the suitability of a decision directly tied to the outcome. But there are so many other determinants in between the decision and the outcome that they should not be confused for one another.
Implement these measures, and you’ll make sound financial decisions. Not always, but more often than not.
Be Intentional, Develop A Strategy, be Unintelligent & Be Very Straightforward.
Our mission is to help individuals improve their Financial Health and achieve Financial stability by providing real life tips through YouTube videos, educational articles here on the Plenteouz site and speaking engagement.