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Decision Review

One of the good things about tracking my money so closely is the opportunity to learn about my habits.

One thing I’ve discovered is that I make very bad decisions when I don’t have time to think about them.

Time is non-negotiable when it comes to financial decision-making for me.

If there is one thing that will save me a lot of money in a month, it is having enough time to think about an expense before making it.

When I have the time to think through an expense before making it, I am able to:

  1. put it into the wider context of my long term goals;
  2. check my budget first;
  3. allow myself to decide whether the trade off I’m considering making is a good one.

Without time, I make terrible financial decisions, I spend without thinking, and there is almost always a more cost effective to have achieved what I wanted without spending what I spent.

To prevent myself consistently getting into the red every month, I need time to do the following about each significant expense

  1. think about the expense
  2. put it into context with my longer term goal
  3. find the money first i.e. plan and be consciously aware of where I am taking the money from and what I’m giving up to accept this expense.

Here are some examples of bad decisions I have made which I must learn from: