How to make good decisions when life throws you a curveball
No matter how much we plan for things, life inevitably tosses us curveballs. These tough moments are usually linked to major life transitions that affect our families, careers, and finances. Balancing these variables can complicate our ability to make decisions.
Making decisions too quickly can lead to mistakes that have longer term impacts. Instead, take a breath, and let these decision-making strategies lead you towards the best possible outcome.
1. Discuss the decision openly and honestly with your partner
The harder the decision, the more serious it probably is, especially if it involves your family finances. Hiding problems from your significant other almost always makes a difficult situation even harder. If this is truly a fork in the road moment, both of you should be on the same page. Your partner’s perspective might be just the thing you need to make sure you’re making the right choice for the right reasons.
2. Consider how this decision aligns with your values
Before making a decision, think about why you’re making that choice? How will you feel about it tomorrow? Next week? Next month? Living by your values isn’t always easy in the moment, but if you make a decision that is at odds with what’s important to you, long-term success will be tough.
3. Identify an objective
Sometimes we don’t understand our true reasons for the choices we make until we dig a little deeper. “Why?” can be a simple but very powerful question, especially if you keep asking it.
For example, why do you want to buy a bigger house?
Because we need more space.
Why do you need more space?
Because I don’t have room for a home theatre.
Why do you need a home theater?
Because my job is too stressful, and I need to decompress.
Turns out your housing decision isn’t really about your house. It’s about work. And a bigger TV isn’t going to make your job any less stressful.
4. Think about everyone involved
Step outside of yourself. Think about the other people who are going to be affected by your choice. Your partner. Your children. Your friends. Your co-workers. Your neighbors. What’s best for you right now might not be what’s best for the people closest to you. Is this decision going to damage any relationships that are important to you? Is that damage worth it?
5. Are past experiences influencing this decision? For better? For worse?
Our decision-making can sometimes feel automatic. We often make choices without ever really thinking about why we made them. But the way we respond to major choices is often a result of our past experiences. For example, your attitudes about an investment decision or big-ticket purchase might be heavily influenced by how you saw your parents handle their money when you were a child. You might continue to work a safe but unfulfilling job because that’s what your father did to provide for your family. Think about whether your experiences are helping you make a good choice or reinforcing some bad habits.
6. Consider seeking professional advice
It can be difficult to admit when we need help but getting counsel from a professional can often give you the perspective you need to make better choices. Don’t be too proud or too embarrassed to contact an attorney, health care provider, counselor, financial advisor or tax expert if you need the best possible advice.
Mark Shimkovitz is a financial advisor with Raymond James Ltd. The views of the author do not necessarily reflect those of Raymond James. This eBook is for information only. Insurance offered through Raymond James Financial Planning Ltd., not a member-Canadian Investor Protection Fund. Raymond James Ltd. member of Canadian Investor Protection Fund.