uccess With Money
uccess With Money
Your Personal Guide to Achieving Success With Your Money and Your Life
When I was in my twenties I had a good friend, not a lot older than I, who became quite successful financially. One day he shared with me a simple technique he used when facing any important decision, especially those which involved money.
First, across the top of a paper he would write a description of the decision. Should I buy this? Should I sell that? Should I take this class? Should I make that investment?
Next he would draw a line down the middle of the page from top to bottom. At the top of one column he wrote “Advantages.” At the top of the other he wrote “Disadvantages.”
Then he would write down every positive and negative consideration he could think of. Cost and potential profit were naturally included. But many other factors were included as well, such as time required and family impacts.
Finally he would balance the two lists to see which side outweighed the other. Usually, he told me, the answer as to whether a decision should be yes or no was clear very quickly. Even when it wasn't the issues that needed to be explored were brought to mind for consideration.
Using this simple approach is a skill worth considering in many situations. Responsible management of your money requires making responsible decisions. And making responsible decisions requires effective decision making skills. This particular technique may not be enough for complex issues but often it is all that a person needs.
Better answers to all these questions can be found by using a thoughtful decision making process such as this one.
Of course there are many other decision making methods and we will learn more about some of them as we go along. Decision making, goal setting and planning skills are among the most vital skills we can learn for success in any area of life but especially in the area of money.
But as simple as it is, this approach is a good place to begin. Try it.
