We are social creatures. Most of us are at our best when around others to some degree. We all need time away, but in my personal experience, my best decisions are made with someone else and not by myself.
Each person is responsible, but we all benefit from the feedback of others around us.
First of all, each of us has limited information and perspectives. A different viewpoint from a family member or friend brings a broader understanding to the decision. This does not mean one person is always right or wrong. But it does mean that we all benefit from hearing from someone with a different perspective.
And we are all affected by emotions, especially when facing big financial decisions. We have emotional biases based on our past. Talking through your feeling with your spourse or a good friend can help clarify if your emotions are getting in the way, or at least influencing the outcome of the decision.
Sometimes we have more confidence than we should, and sometimes we have less than we should. Sharing our thoughts with someone who knows us well can help provide clarity on our ability to move in one direction or another.
Having a practice of not making financial decisions in isolation can also provide accountability. Sometimes I want to do something just because I want to. But if I have to explain the rationale to a friend who is honest with me, that accountability may deter me from a rash decision which could be harmful. My mental justifications for decisions can fade quickly when my spouse brings light and clarity to the decision.
And lastly, big financial decisions bring risk. The repercussions can last years or perhaps decades. For this reason it's good to reach out.
There is a time for solitude, and my best planning is in solitude. Each of us is different. And we're not talking about small, daily, routine financial decisions. But the big ones -buying a home or vehicle, career change, major investment - for these we need to reach out to those around us who can be trusted with confidential information and who aren't afraid to tell us the truth.
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Disclaimer: The views expressed on this website reflect the personal opinions and experiences of the writer. Nothing in this article constitutes financial advice in any way. Information on this website should not be relied upon for investment or business advice. Please consult with a qualified financial professional before making any financial decisions. 3800293