How measured are you when it comes to making significant decisions?
Chances are the time you allocate and the research you undertake varies depending on the topic in question.
A recent study* suggests many people do not have enough mental space to make the right choices when it comes to tackling life’s difficult decisions.
The good news, however, is that minor changes to the way people approach decision-making can dramatically improve their ability to make better financial choices.
Avoiding difficult decisions
The research found that the great British public typically ‘don’t do difficult decisions.
For instance, over four million said they do not have the mental space to tackle difficult issues, while a further 6.4 million do not have time for important life admin.
Many Brits also admitted to putting little effort into key decisions. Over half said they always ensure an optimum choice of holiday destination, but less than one in three adopt such a thorough approach to pension arrangements.
Decision fatigue
This tendency to ‘sweat the small stuff’ appears to be impacting people’s financial decision-making abilities.
For example, over half of respondents said they have not made a decision on whether to buy critical illness cover, while just under half have not considered changing their pension arrangements.
In addition, when financial decisions are being made, many do not give it their full attention, with over four in 10 sorting out finances while sat on the sofa and one in 10 doing so at work.
Make time for life’s big decisions
Tips to aid decision-making
Small behavioural changes, however, can have a big impact on people’s ability to tackle difficult decisions.
For instance:
- Picking a quiet location free from distractions
- Putting aside time when you can focus fully on an issue
- Avoiding making decisions after a tough day
- Visualising the future and linking financial decisions to life ambitions
Whilst these examples appear to be simple, they are hugely helpful and beneficial.
We are here to help
Seeking advice is also a simple act that brings with it a huge benefit.
So, don’t forget we are always here to help you with life’s difficult financial decisions.
Simply, get in touch and we will guide you through the decision-making process. With our assistance you might even find that making better financial decisions is not actually too difficult or time consuming at all.
*Scottish Widows, 2019