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Making Good Financial Decisions

Opinion

Making Good Financial Decisions

Reading Time: 2 minutes

Many of us are overwhelmed by the idea of making financial decisions. Most may feel that they do not have a financial background, or if they do, that it is too limited for them to competently navigate financial issues and make good financial decisions.

So when we have to make financial decisions we find ourselves either:

  • Taking too long to make a decision (which can have consequences),
  • Rushing into a decision to remove the cloud of uncertainty (which can have consequences), or
  • Refusing to make a decision (which can have consequences).

What follows is an extremely simple but yet profound framework that can help you get financially savvy without putting yourself under pressure, whilst over time giving you all the tools needed to make good financial decisions.

Here are three simple things to do that will significantly improve your financial decision making:

1. Read

On a regular basis, read the financial press and simple articles around personal finances online. Over time you will build up a good financial vocabulary and awareness to issues that will affect a decision you will have to make in the future.

2. Google it

If you have a specific financial decision to make, be it buying a house, deciding how much to save, whether to invest in something giving very high returns etc., then Google is your best friend.

Many people are a Google search away from surviving a financial scam or from making a good financial decision. So before you make a financial decision, do a few internet searches on it; reading responses and articles answering your search will increase your financial knowledge in addition to assisting you with the current decision.

3. Ask

It is amazing how many people would be better off in their lives if they had simply decided to ask for the input of others before making a financial decision. Before you make a financial decision, ask for tips and pointers from some of the people around you; especially those with a financial background. Tell them what decision you have to make and ask them what you must think about. Also, ask more than one person. We all have our off days now and then.

Moreover, if you can afford one, try getting yourself the services of a competent and proven financial advisor who you can ask for advice when needed.

Comments

Katlego hails from a humble background having been brought up in Mamaolo village and subsequently in Lebowakgomo township. His Christian faith and dream of becoming an actuary inspired him to transcend the limitations of his background and culminated in him enrolling for and obtaining his UCT Actuarial Science degree in record time.

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