Making money decisions: Part 1
Determining your money values.
September 26, 2014 - Author: LaShawn Brown, Michigan State University Extension
Making decisions about money is a life-long process that needs constant evaluation. Making money decisions involves determining your money values, decision making, communicating about money and setting financial SMART goals. Understanding your money values may assist you in making better financial decisions about your money.
Determining your money values
Your values play a big role in determining the way you spend money. If you do not understand how your values and emotions influence your money decisions, then you will never be able to gain control and make better money decisions. Take the money personality assessment to understand your money values.
Steps for decision-making
Making financial decisions is a huge process. When making decisions about big-tickets items such as home and auto purchases, you should utilize a detailed and preferably written process. When making decisions on purchasing expensive large items, it is important to discuss with your spouse and family so everyone understands how the purchase may affect the household. Here are a few questions you can ask yourself or discuss with your family:
- What is the money issue or decision you need to make?
- What are the possible options or choices for making the decision?
- What are the possible results (pros and cons) for each option or choice?
- What is your decision?
- When will you look at the decision again?
Furthermore, perhaps a Decision Satellite Map may be helpful. Decision satellite maps help you figure out everything that needs to be considered when making a big decision.
Michigan State University Extension has a wealth of information on personal finances. Additionally, take the MI Money Health survey to see where you are financially and how you can improve your financial health.
Other articles in this series: