4 Things to Consider When Making a Massive Financial Decision

May 28, 2020

Whether you are looking to up your rental budget to live in your dream CBD apartment, buy your second house with your significant other or allocate funds to have more help around the house; the decision to say yes, no or not now can feel overwhelming. We feel you on this front.

Important decisions can oftentimes be the most confusing. While you are making your pros and cons list, you find yourself having an internal battle with a solid argument against moving forward with this financial decision. But then your heart cries to you about how much you need this financial decision to be made to feel more at ease. Before you know it, you have yourself a heart and head dilemma.

Do not worry, we have walked this road before. Here are 4 factors we think every person should run through before committing to their big financial decision.

Crunch the numbers

Alright, first and foremost, do you have sufficient dollars to make your new financial decision? Will your current income enable you to make it happen comfortably? What adjustments need to be made to make this decision happen (comfortably without leaving you short-changed)? Just because you can afford something doesn’t immediately equate to being able to do it. Our team at Visia are strong about not making a numbers-only decision! There are so many other factors to consider, paired with the numbers!

What is the value of this decision?

Objectively assess the value of the decision in front of you. Why do you honestly believe this decision will positively impact your life? Will it add value? A rule of thumb for us is to ensure your financial goals align with your core values. You want your decisions to be satisfying for the long term, not just a novelty for the now. Weigh out what this decision means to you compared to other facets of your life.

Look at the decision with perspective

Remember, any big decision does not just impact your wallet, it also affects your time, energy, attention, and overall resources too. When processing if this choice is for you, consider the impact this will have on these other facets of life. Look at things with a broader mind frame and assess how this will impact all areas of your life. Is it still worth it? If yes, then you are on the right track.

Is it the right time?

Is this the right time to go ahead? Things like a paralysing pandemic (cough Corona cough) call for frugal times. Perhaps there are bigger priorities to consider now, and this financial decision can wait. Assess the situation and balance out your heart and head. Don’t do things just because of FOMO.

What’s next?

Making any big purchase decisions is always a little nerve-wracking – we get it. This is why we implore you to chat to one of us. At Visia, we are here to support our clients through tough times. Get chatting with us today.

Disclaimer: Kora Drage and Visia Financial Services are Authorised Representatives of Sentry Advice Pty Ltd. The information contained in this article may contain general advice. The information contained herein is of a general nature only and does not constitute advice. You should not act on any information without considering your personal needs, circumstances, and objectives. We recommend you obtain professional financial advice specific to your circumstances. Any views and opinions provided in this article may not reflect the views and opinions of Sentry Advice Pty Ltd.

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