Emotional Versus Strategic Decision Making
Decision Making With Amida Wealth
The psychology of decision making is influenced by several factors including how we are raised and what we experience. Many times, we need to reprogram ourselves into adulthood. In other words, making decisions is psychologically complex! Emotions drive more than 80 percent of our decision-making, while logic makes up the rest. According to Gazzaniga, a well-known neurobiological scientist and author, the human brain has a function called the left-brain interpreter. The left brain interpreter refers to the construction of explanations by the left brain in order to make sense of the world by reconciling new information with what was known before. The left brain interpreter attempts to rationalize, reason and generalize new information it receives in order to relate the past to the present. What is your decision making process? At Amida Wealth we encourage you to become present to your own decision making process in-order to experience more wealth in your life.
The economy has begun its shift and we are living in higher-than-normal inflationary periods. Meaning, your money buys less today. The federal government is trying to slow it down by increasing interest rates, slowing the economy, attempting to increase unemployment. It takes a little bit of time for this to happen and who knows if this is the correct strategy. What we face today is that everyday items cost more, and markets fluctuate during these periods but eventually, it all falls back into flow. In other words, it is important to educate yourself and know where the economy is and where along the economic cycle we are. Be present to your reaction and how your decision-making process shifts as we enter a period of what we perceive as scarcity. Having a strong financial structure and being present to how we react allows us to see the possibilities and take an opportunistic approach to the environment we are currently in.
At Amida Wealth we quiet the noise and help you make decisions that are right for you in today’s economy. We encourage to stay focused on goals and don’t let temporary moments dampen your spirit. We are about to enter a beautiful season, and we encourage you to work with an advisor for comfort and guidance. Amida Wealth is one phone call and email away!
Psychology Of Decision Making
The psychology of decision making is complex because it entails all of our previous beliefs about life. In order to come back to the present moment when making big decisions, first, hit pause during the emotional dance. In other words, sink deep into your breath. Secondly, find balance by perhaps going for a walk or a run. Thirdly, trust your gut feelings and recognize the value of your process. Fourthly, take your time and know that nothing should feel rushed. Fifthly, integrate emotions with reason. Lastly, ask yourself questions & seek advice from someone you trust. The more we are able to consciously go through the psychology of decision-making, the more we are able to attract what we want in this life!
Information vs. Instinct Decision Making
When it comes to investing, many people believe they have a “knack” for choosing good investments. But what exactly is that “knack” based on? The fact is, the choices we make with our assets can be strongly influenced by factors, many of them emotional, that we may not even be aware of. Remember that Investment decisions should be based on your own goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
Deal du jour Decision Making
You’ve heard the whispers, the “next greatest thing” is out there, and you can get on board, but only if you hurry. Sound familiar? The prospect of being on the ground floor of the next big thing can be thrilling. But while there really are great new opportunities out there once in a while, those “hot new investments” can often go south quickly. Jumping on board without all the information can be a mistake. A disciplined investor may turn away from spur-of-the-moment trends and seek out solid, proven investments with consistent returns.
Risky Business Decision Making
Many people claim not to be risk-takers, but that isn’t always the case. Most disciplined investors aren’t reluctant to take a risk. But they will attempt to manage losses. By keeping your final goals in mind as you weigh both the potential gain and potential loss, you may be able to better assess what risks you are prepared to take. Some investors attempt to predict the future based on the past. As we all know, just because a stock rose yesterday, that doesn’t mean it will rise again today. In fact, performance does not guarantee future results. Some investors tend to pull out of investments the moment they lose money, then invest again once they feel “driven” to do so. While they may do some research, they are ultimately acting on impulse. This method of investing may result in losses.
Eliminating Emotions When Decision Making
Many investors “stir up” their investments when major events happen, including births, marriages, or deaths. They seem to get a renewed interest in their stocks and/or begin to second-guess the effectiveness of their long-term strategies. A financial professional can help you focus on your long-term objectives and may help you manage being influenced by short-term whims.
Amida Wealth Family Conversations
At your next family or friends gathering encourage the topic of decision making. How do your friends and family make decisions? Do they operate off emotions? Dive deeper into this topic by asking more questions. In other words, become more exposed to where you may have developed your decision making strategies. Encourage those around you to become more present to their emotions, and how their emotions may impact their decision making going forward. The more we become aware of the driving forces behind our decisions, the more abundant our lives will become.
In conclusion, wealth is a mindset. The more clear we become with our intentions, the more focused and intentional we can gear our minds to become. In other words, our decision making process can greatly enhance our future wealth as long as we become present to our emotional reactions. Be sure to connect with an advisor at Amida Wealth to further establish the best decisions that would work for your greater abundance in this life.