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.
![](https://baizat.com/wp-content/uploads/2024/04/baizati-dm-awareness-en.jpg)
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 |
Notes
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.