Decision making

We make financial decisions every day and with each decision comes a range of options. This can be exhausting and lead to a failure to choose the best option, or failing to make any choice.

Indecision becomes a decision to do nothing - this can sometimes be the worst decision of all.

The right tool for the job
There are systems to make decision making easier. For example, a shopping list is 
an effective tool to use when buying your groceries. For big purchases, like a new phone plan, we’ve included simple tools in our Shopping Smart section. 

Making great decisions under pressure
Making big financial decisions can be tough, especially if you’re under time pressure and feeling rushed. It won’t surprise you to learn that over one in 
three Australians find dealing with money ‘stressful and overwhelming’  (ASIC, 2018).

The power of presence
One of the best things you can do is slow down and step into the 
present moment. This helps you take note of what you’re feeling so you can:

• Step back: Why are you making this decision and what are you basing it on? 
  Is it made out of fear or uncertainty? It is in line with the person you want to be? 
• Step outside: How would you advise someone else in this situation? Imagine you were making the decision for a family member or a trusted friend - what would you do? 
• Step away: Is now the best time to make this decision? Could you return to it in two minutes, two hours or two days time?
• Step forward: Look to the future. We choose immediate rewards because they make us feel good in the moment. What other rewards could come if you delay this decision?

Release regret (and learn for later)
We encourage you to accept the choices that you do make. If you are disappointed with the decision you make, acknowledge your feelings of disappointment but try not to dwell on it.  Remember, there will always be another decision that needs to be made. Is there something you’ve learnt that you would do differently?

Decision-making tip: Mindfulness (or pausing on the platform)
Marketers and salespeople make their money by getting us to spend ours, hoping to sweep us into ‘boarding the train’ with fast thoughts and fast decisions.

A helpful analogy is that we can’t control which trains (or thoughts) pull in at the station, but we can choose whether to board the train. Mindfulness practices help us pause on the platform and view the thoughts objectively, rather than get swept up in their momentum.