How to Make Faster Decisions

Did you know that achieving Financial Freedom has more to do with making many quality decisions rather than good luck?

While some people may attribute it to luck, to me, luck is merely a window of opportunity for us to make that quality decision in that moment that happens to change the course of our lives. 

So are you making enough quality decisions?

You may ask… what IS a quality decision? Before we even answer that question, why not ask ourselves… What’s our process to make simple decisions faster?

So what do I mean by this? 

For example – it’s now lunch time. Your spouse or a friend gives you a call and asks the infamous question – What to eat? At this point, what’s the first thing that normally comes to mind? 

For most of us, the answer is usually “I don’t know. Why don’t you decide?”. This question will be passed around like a hot potato until someone finally makes a decision. By then, precious time has been wasted.  

Here’s where you can apply the HOT test to speed up your decision making process and here’s how you apply it:

1. H stands for Happiness Test: Here’s where you ask yourself – whether you are going to have a Big Mac or a plate of chicken rice for lunch, would it make you feel better or worse a week from now? In fact, does it even matter? 
2. O is for the Only Option Test: Let’s just say you drop one of those options above and you are left with either Big Mac or Chicken rice – would you take it anyway?
3. T is for the Two Way Door test: If you made a decision to go with either one of the above and you didn’t like it, can you quit it and grab something else to eat?

If both options pass the three tests above, then it really doesn’t matter which one you choose. It’s not going to impact your happiness since you’d take the option even if it’s the only one, and you can drop it and go for something else at any point in time. 

You might as well just flip a coin. Make sense?

So then, how can this be applied to making decisions toward financial freedom?

We often come across certain financial instruments. Assuming it is legit and sound. One of the most common questions we often sit on is – is it worth it?

We would sit on that decision for a long time and then miss the opportunity. If the next one comes along, assuming you have evaluated it and you found yourself sitting on that decision again, perhaps it’s time you put the HOT concept to work.

1. If I commit to it, would it make me feel better or worse a week from now?
2. If this was the only option available right now – would I take it?
3. If I commit to it, and 6 months down the line I feel it’s not for me, can I easily make changes to it or withdraw from it?

If it checks all the boxes, I guess your decision is clear! If not, then get ready to apply for the SHOCK Test, which I will discuss further in my next article. 

The HOT concept is discussed in detail in the book HOW TO DECIDE by Annie Duke.

Until then, happy learning.