How to Make a Decision about Money

We make decisions about money every day and often through desire, habit or spontaneity, without much thought for the consequences. It is not only the big ticket financial decisions that that can trick us up, it’s the decisions that we make every day that involve small amounts of money that get us into the most trouble. A common example is the daily use of a credit card.

So when you decide it is time to take a step back and review your earning, saving and spending, try asking yourself the following questions. There is nothing quite as good in decision making as self-honesty and logical thought; without the distraction of the emotions that has so far driven your money behaviour.

 Is this decision about emotional buying, problem solving or goal


 Do the numbers show that it is affordable without personal credit?

 Have you evaluated all of the financial risks of your decision?

 Is this decision consistent with your life goals and financial priorities?

 Will this decision add long term value to your life?

 What is the best time to implement this decision?

 Will other people be positively or adversely affected by your decision?

 Is there pressure on this decision from any person or organisation?

 Are friends, family or work colleagues influencing this decision?

 What are your personal preferences in making this decision?

 How will you feel inside if you do make this decision?

 How will you feel inside if you don’t make this decision?

 What do you stand to gain by making this decision?

 What do you stand to lose by making this decision?

Important … please read this!

What we presenting in this article is educational information only.  Our aim is to empower you to manage your own money and make better financial decisions.  The factual information presented here should not be regarded as advice.  All users of our services should seek their own independent advice about their personal circumstances.