Most of us suffer from this condition at some time or another.
Imagine going to buy a loaf of bread. It seems simple, but once you get to the supermarket, there are so many different types it’s almost impossible to make a decision. Too much choice can be as much trouble as not enough.
Do you have the same problem with money? There is so much information, so many choices, and so many opinions, it all gets too hard. In the end, you do nothing.
If you are overwhelmed to the point of inactivity, take heart, you are not alone. Many studies have shown that having lots of options, whilst initially appealing, can actually be an obstacle to decision making.
If you suffer from financial analysis paralysis, here is a simple checklist to break the cycle and get you started.
Doing something rather than nothing can make a big difference to your net worth and lifetime financial goals, as well as your peace of mind.
- Ensure you have an up-to-date will.
- Focus on paying off your non-deductible debts, such as credit cards and personal loans.
- Arrange personal insurance such as Life insurance if you have a family to support and debts to cover. In doing so, ensure your income is also protected.
- Commit some of your income to a regular savings plan.
- Maintain an at-call emergency fund (ideally up to six months’ expenses).
- Understand your superannuation and consider making contributions to superannuation to assist with your retirement needs.
Sometimes it’s best to go back to basics. If you need help with any of these crucial steps, call your financial adviser.
The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.
