Sound Financial Decisions – Being Aware

Now we’re aware of external factors that can affect our financial decision making, the best way to manage them is by recognising them before they impact us.

Practice labeling

By being aware of these factors and having a plan to deal with them, we can handle them successfully. We can acknowledge them without making impulse or costly decisions. The below table gives some examples.

Decision Influencing Factor How it will impact me? How I will deal with it
Buying a phone Salesperson pushing to sell me a phone Encouraged me to buy immediately I told them I will shop around and come back later
Shopping in supermarket Promotion price on tomato ketchup Encouraged me to buy a different brand The ketchup expired too soon so I avoided purchasing it
Joining a gym Friend’s recommendation Motivated me to start fitness classes Decided to try a free class first to see if it fits my needs
Upgrading to a new car Advertisements showing the latest model features Made me consider buying a more expensive model Evaluated my budget and financing options before deciding
Signing up for a credit card Offer claiming high rewards points Seemed like a great deal at first Read the fine print and compared with other cards to make a well-informed decision


For the influences you wrote on the previous page, write notes on how you can recognise them and how you will deal with them next time.