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June 06, 2021

Do you think strategically when making money decisions?

All of us make decisions on a daily basis, most of them simple and straightforward. Sometimes though, particularly when it comes to money, there are instances that require more careful thought and consideration.

One of the great truths about managing money is that if you keep on doing what you're doing now you'll keep on getting the same results. But it's hard to break establiushed patterns.

You can practice confident decision-making by remembering a simple dictum over and over: You can't  have certainty and you don't need it. By accepting that no certainty exists and that you don't need it, you'll instead harness intuition and, by extension, confidence, says psychologist Nando Pelusi.

And if that doesn't work, perhaps you should have a look at the strategic decision-making guide developed by the MetLife Mature Market Institute

The guide explores various decision-making styles, identifying the best approach, and then offers tips for improving results. It suggests that you prepare a list, in order of priority, of the aspects of a situation ( managing debt, DYI investing versus funds ... etc.) that are most important to you — and use that list in weighing the choices before you. 

Avoid making decisions under certain circumstances, such as when you feel stressed in general or pressured to make up your mind quickly, experts suggest. That car will be there tomorrow, for instance.

When you are ready to act, then think strategically and then act decisively.

Are you decisive when it comes to money? How has that helped you in the past?

By Gordon Powers, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...