Financial Tools

Why Use Them?

All of us have to make decisions every day. Some decisions are relatively straightforward and simple. Others are quite complex. Simple decisions usually need a simple decision-making process. However, difficult decisions involve issues like these:
• Uncertainty - Many facts may not be known
• Complexity - You have to consider many interrelated factors
• High-risk consequences - The impact of the decision may be significant
• Alternatives - Each has its own set of uncertainties and consequences

Interpersonal issues - It can be difficult to predict how other people will react.

With these difficulties in mind, the best way to make a complex decision is to use an effective process, and a Financial Tool provides the effective model Clear processes usually lead to consistent, high-quality results, and they can improve the quality of almost everything we do.

A Systematic Approach to Decision Making

A logical and systematic decision-making process helps you address the critical elements that result in a good decision. By taking an organized approach, you are less likely to miss important factors, and you can build on the approach to make your decisions better and better.

Class Offerings

• DebtWatchers
• Financial Needs Analysis (Personalized Financial Check-up)

Six steps to making an effective decision

1. Create a constructive environment - make sure you establish the objective. Define what you want to achieve. Use creativity tools from the start. The basis of creativity is thinking from a different perspective.
2. Generate good alternatives - you force yourself to dig deeper, and look at the problem from different angles. If you use the mindset ‘there must be other solutions out there,' you're more likely to make the best decision possible.
3. Explore these alternatives - when you are satisfied that you have a good selection of realistic alternatives, then you will need to evaluate the feasibility, risks, and implications of each choice.
4. Choose the best alternative - after you have evaluated the alternatives, choose between them.
5. Check your decision - you have to employ a ‘sense check' with your decisions. Look at the decision, make sure that your process has been thorough, and ensure that common errors haven't crept in.
6. Communicate your decision, and take action - explain your decisions to those affected by it, and involved in implementing it. decision.