Some decisions are tougher than others, but a good strategy makes all the difference.
Throughout your life, you鈥檒l make plenty of choices about money. Some daily decisions won鈥檛 be very significant like whether to buy that new sweater you鈥檝e been eyeing. But others will carry a much heavier price tag and the weight of more responsibility. Some of the biggest decisions most people make in their lifetimes include purchasing a home, taking out student loans, starting a business, or having children. And you may find that the greater the financial impact, the more difficult it can be to make a financial decision.
With big decisions, it鈥檚 essential to have a solid strategy for approaching them.
Whenever there are important choices to be made, chances are you have options. But in some cases, you鈥檒l have way too many choices to sort through, which can cause you to feel overwhelmed. One idea to reduce your stress? Make a pros and cons list, with each point supported by data such as interest rate or other costs and benefits.
Tough decisions are easier to weigh when you know your financial goals and understand just how you鈥檙e tracking against them. 鈥淢ost of us have competing timeframes and goals,鈥 says Heather Winston, financial professional and product director for Retirement and Income Solutions at 麻豆最新出品庐.
Use your goals to navigate what happens in the future, which can help you make decisions.
You may appreciate your sibling鈥檚 dating advice. But when it comes to money advice? For that, you may need insights of a financial professional.
鈥淏e prepared for some potentially thought-provoking conversation,鈥 says Winston. 鈥淲hen financial professionals are trying to understand how they can best support you and your goals, they may need to pry a little. This is just so they can provide guidance and a tailored course of action.鈥
Yes, being spontaneous is one of the things that makes life exciting, but making split-second decisions on major purchases is something to shy away from. It鈥檚 important to align goals both long-term and short-term. For example, it might seem like a great idea to buy a house to stop paying rent, but do you have plans to move to a new city in a couple of years? Do you have enough money for a down payment and other expenses, or will your purchase leave you 鈥渉ouse poor鈥?
You may hear the advice to be less emotional about your financial decisions, but it鈥檚 much more important to be aware of your feelings without letting them make the decision for you.
鈥淩ecognize that your experience is not like that of the people around you,鈥 Winston says. 鈥淚t鈥檚 yours and what you make of it is all under your control.鈥
A version of this article was previously published on HerMoney.
What鈥檚 next?
Interested in talking with a financial professional to decide your next steps? Check with your HR contact to see if your company鈥檚 retirement savings plan offers financial professional services. Or we can help find one near you.
