Improve Your Decision Making Skills to Improve Your Finances

too many choices

We are faced daily with an overwhelming number of choices, particularly when it comes to spending. A simple choice like buying shampoo can turn into a ten-minute decision if we consider overall price, bottle size, brand reputation, specific variety (for oily hair, for straight hair, for red hair, for thin hair), per-unit price, coupons, and sales. The local Wal-Mart offers more than seventy different types of shampoo, and their selection isn’t a particularly large one.

These choices don’t even account for decisions we make before entering the store — Do I really need shampoo right now? Can I make it stretch by adding water, using less, or washing my hair less often?


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8 Responses to Improve Your Decision Making Skills to Improve Your Finances

  1. Madhu says:

    Hi Shannon! I like your post and I wish you will get more and more time to write.

    Management more than money matters!

    Thank you for your post.

    Happy earning,thinking and then spending and investing.


  2. deanna says:

    I sometime wish for simpler times when there weren’t quite as many choices as there are today. It can all get overwhelming.

    Learning how to decide is a skill that people rarely realize is a skill. They think there is no practice needed, but once you realize that every choice has a consequence, you realize how difficult it is to be a skilled decider.

    I’m still learning, but I am actively pursuing bettering my decision making skills.

  3. roberts says:

    Thank you for this article. One of the hardest things to convince people is that personal finances has only a little bit to do with money. It has to do much more with how we act with making decision being one of the ways we act. I will be passing this along to my list of friends.

  4. cheryl says:

    I think this is at the root of many spending issues today that did not exist when I was growing up in the 70’s. Not only are there exponentially more consumer goods to aspire to, our thinking is more distracted and impulsive, in general. As an educator, I do a variety of trainings and often try to talk about this issue of identifying values,setting goals and establishing priorities. I think it helps in determining how we spend not only money, but also time and energy.

  5. The Hoss says:

    Setting financial priorities is definitely having an ability to determine what is need versus what is wanted.

    The Hoss

  6. Joseph Ganem says:

    I share your frustration with too much choice. It irritates me when I shop, the amount of time I waste looking for simple items. I spent 15 minutes in the dairy isle the other day looking for heavy whipping cream. I found dozens of flavored coffee creamers, cream substitutes, fat-free creamers, lactose-free creams, cans of whipped creams in various flavors, but no heavy whipping cream. It

  7. Steven says:

    I just finished reading The Paradox of Choice by Barry Schwartz. It’s a great read to compliment this great post.

  8. Valentino Buoro says:

    Your article makes very interesting reading. I think the key word here is practice.Some people drop off such laudable practice of thinking through their expenditures simply because they try and fail a couple of times. To some others who buy on impulse the only restrictive factor is when they have no cash on them. That is why I am also convinced by the sound advice that those who fall into this second category should do a budget daily and keep on them just enough cash to meet the the budgeted expenditure. Be this as it may, one crucial issue here is , what happens in a case of financial emergency.

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