Indecision Trap
“Be decisive. Right or wrong, make a decision. The road of life is paved with flat squirrels who couldn’t make a decision.” - -Unknown
We are in an unprecedented time. With all the uncertainty in the world today, it can be difficult to avoid the indecision trap. There are so many variables and unknowns that make confident decision-making seem impossible. It’s the year 2020, and I think it’s fitting that we often use the 20/20 hindsight analogy to reference making well-informed decisions. And with serious matters in the balance, the consequences of our choices are no small thing.
So how do we stay out of the indecision trap? A significant first step is to have a plan in place. In my world, this comes in the form of a financial plan. A solid financial plan gives us a framework to make financial decisions. If the decisions do not align with the stated goals in your plan, there are two things you need to decide. First, determine if you need to move on from the decision because it does not align with your plan and move you toward your stated goals. Second, you may have to reevaluate your plan and see if your priorities have changed or if you need to adjust your strategy. In my experience, a framework allows us to see when decisions are made based solely on emotion. We are then able to dismiss those choices if they do not align with our goals.
Another way to stay out of the indecision trap is to have a formula for making decisions. If you have a consistent method for coming to a decision, it will help you make better and more logical decisions. A decision-making method could be as simple as a pros and cons list. I have used the Decision Matrix in my life and my practice for several years. It was part of the training for my Certified Kingdom Advisor designation. This decision matrix process has ten steps:
Pray (or meditate, turn off the noise to gain clarity, etc.)
Define the Decision
Clarify Your Objectives
Prioritize Your Objectives
Identify the Alternatives
Evaluate the Alternatives
Make Preliminary Choice
Assess the Risk (What is the worst that could happen?)
Make the Decision
Test the Decision
While it’s not necessary to use this elaborate of a process to decide what you will have for dinner on Thursday night, this 10-step process can help you navigate more significant decisions and questions - How will this current pandemic and economic situation affect my family’s future? Is it time to retire? Is it wise to do it now, or should you wait? Should I send my children back to campus, or do I have them take online courses? And so many more!
A consistent process to make big decisions will also give you the courage to stick with your choices when storms arise. Most hard choices will be tested and make you question if you made the right choice. I have gone back to the decision matrix that my wife and I used to decide to send our son to private school many times. Each time, it reminds me of our diligent process and reaffirms the decision that we made. Reviewing our decision matrix gives me comfort that we made a good decision - not a decision made on a whim but one that had been carefully and conscientiously processed. Please note that I said good decision, not the perfect or right decision. There will be times when the situation changes, and you will need to reexamine the facts and make a course-correction. I think we can all appreciate the need to adjust and adapt due to all we have faced this year.
If I could give you one piece of advice during these times, I would encourage you to be bold. Be the person who makes decisions and moves forward with confidence when many around you are frozen with fear. You may have to change course as things evolve, but it’s much better to make a decision and move toward your goals than be the flat squirrel.
An advisor can be of great value in providing unbiased and unemotional advice. Please reach out so we can work together to create a framework to help you work through your most important decisions. I would also be happy to walk you through the decision matrix process if you are facing a decision that has you stuck in the middle of the proverbial road. Again, I encourage you to be strong and courageous. Do not be afraid; do not be discouraged.
*The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
*There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes. All investing involves risk including loss of principal. No strategy assures success or protects against loss.