Take your time for the right decision

As a principle, a rash decision based on others' recommendations isn't a good move.

There was time when men made all the financial decisions. No wonder people sing for the good old days. Just kidding. But whether it is an individual or a family decision, you may find yourself so challenged that you feel it would be an advantage if such tough decisions could just be outsourced to someone else.

It may be a relief to know that if you just say you're thinking about whatever decision, many people would be more than willing to take up this outsourcing job. Family, friends and colleagues are always there to offer free or paid advice and debate the pros and cons of each and every decision you're trying to make. They may point to you toward what is, in their opinion, the right decision, but the final call remains yours.

The issue is that some of those decisions are so entangled with other factors which may force you to take the option which doesn't seem the most cost effective. Take, for example, your children's education. The cheapest cannot be the best - unless you're running on a very tight budget. The most expensive may not be good either. For almost all parents, there are issues of social surroundings, cultural background, languages, school proximity, in addition to the cost of tuition fees that need to be considered. Finally, if your aspirations put you way beyond your budget, you may find yourself forced to compromise on one or more factors, or consider other financial sacrifices to make up for the extra long-term expense. In this case, you will have to evaluate all your financial commitments to determine which can be a candidate for cost cutting.

Such occasional decisions which involve substantial chunks of money to be paid either upfront or on long term payments are a source of pressure because you always need to get them right - or as right as possible. That is why you need to take your time. Luckily, these are not everyday decisions, so when one is coming, you're aware of it and therefore, you can take your time and invest plenty of brainpower to make sure that you're at least comfortable with the final result.

Then come investment decisions, which also force you into uncomfortable zones. Take for example property investment. Who can tell whether it is a good decision or not? Is it better to go for the stock market? Analysts and market experts have contradictory views. Bubble or not a bubble? If it is you now who has to make a decision, you need to make sure sure not to take on too much risk.

Advantage

Such decisions carry one advantage compared to the ones above: they are not urgent. While you have to send your kids to school, you don't have to invest your money immediately or even soon. So take all the time you need before venturing into unknown territory. If a financial adviser or a so-called friend proposes a once-in-a-lifetime opportunity, you need to think twice before rushing into it. In principle, a rash decision based on others' recommendations isn't a good move.

This should not mean that you will be wasting time and returns on a potential investment, but what you should do is to collect as much information as possible on the area you are interested in. Whether it is property, the stock market or offshore investments, there are loads of resources. Invest time and effort in trying to do your own homework. A short familiarisation with the subject may prove handy as an introduction to the jargon and the most common pitfalls. If your next stop is a sales agent or a broker, you will need to be able to ask the right questions and make sure you're not overdosing on sales stuff.