Have Confidence in Your Financial Decisions

We all know how important it is to have a strong financial plan, financial goals. What is it they say? If you fail to plan then you plan to fail. At times though it can be easy to allow what other people are saying and doing to interfere with our own personal financial plan. This can cause big problems for you in the long run because as with all things, everybody has a different opinion on how you should be managing your money. Let’s consider just one area where you may allow others to steer you away from your financial plan, only to regret it in the future.

Buying a House

As we have discussed many times on Money Bulldog, buying a house is an admirable financial goal to have. What though, if having done all the figures, you have decided that you can’t quite afford it right now or perhaps you don’t believe the hype that house prices are due to sky rocket? Will you stick to your own financial plan or will you – over time – allow yourself to be worn down by those around you? Pressure can come in many forms. It may be a well-meaning parent or grandparent harping on about renting being dead money, it may come from the media as the so called professionals express their confidence in the housing market, or it may come from within as you start to feel that you are being in some way left behind. Thinking about the scenarios mentioned above there are a few things that we need to remember.

Well-meaning family members

As well-meaning as family members may be in their determination to see you progress onto the housing ladder, more often than not they do not know your complete financial situation. If you truly feel that you can’t afford a house right now – or if you feel that you may not be able to afford a mortgage if rates were to rise in the short to medium term – then don’t do it. Have confidence in your financial plan. Not only will you save yourself years of worry trying to pay for a mortgage that you can’t afford, you might also find that houses are more affordable when you do eventually come to buy in future. Everybody has to make their own decision on such a huge financial purchase, so do your sums and have confidence in that decision. Even if the market does go against you and you end up paying a little more in future, in my opinion it’s better to live with the regret of a decision you have made than to spend half of your life blaming others for pushing you down a road that you were just not ready for.

The media   

In our technological age it is fairly easy to be bombarded and influenced by the media. At the moment all we seem to hear about is how the economy is recovering at a startling pace and how house prices are rising and are set to rise further. The problem with the media is that they just love overplaying and sensationalising a certain angle. In times of crisis they will often over play a situation and the same goes in times of a supposed boom. At present in the UK we have been hearing a lot about the growth of house prices and this could easily cause you to panic and forget your own, well thought out financial plan. If you dig a little deeper into the media you will also find many experts writing about their worry of a possible housing bubble occurring. Even the governor of the Bank of England – the man who has more influence than anyone over the direction of house prices – has again warned on the housing market. So don’t let the media scare you into making the biggest purchase of your life. If you do decide to buy a house let it be because you have done your figures and research and you feel the time is right for you, don’t let it be because the media scared you into it.

Pressure from within

We all want to feel as though we are progressing in life and because of this we can easily become impatient or unhappy with our lot. When it comes to our finances though, impatience and dissatisfaction are powerful enemies and many have found themselves crippled by debt because of them.

Have you ever felt pressured into a financial decision or purchase, only to regret it later?

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8 Responses to Have Confidence in Your Financial Decisions

  1. You’re right on the mark here, Adam. We had to learn the hard way, after listening to others for years about the “right way” to move up in the world. Now we’re finally doing what’s best for us, but having to pay off lots of debt to get there. Readers, do what you know in your heart is best for you, regardless of what the media or anyone else tells you.
    Laurie @thefrugalfarmer recently posted..Is 2014 Your Last Chance to Get Out of Debt?My Profile

    • Adam Buller says:

      Thanks Laurie. It is easy to be influenced by others, especially when you’re young. Sometimes it can also seem as though the people who are advising you are experiencing a level of financial success. Really though we have no idea of the real state of their finances or if they are genuinely wealthy, how they accumulated that wealth. As you say, you have to do what you feel is right in your own situation no matter what others say.

  2. My wife pressures me into financial decisions all the time…of course she’s usually right. When I wanted to wait because I didn’t think we would be approved for a mortgage…she pushed and 3 months later we moved in. When she thought we should get a different vehicle because the one we had was breaking down all the time,I wanted to wait thinking they finally figured out what was wrong with it. Another shredded belt on the highway and we were shopping for a new vehicle. Maybe one day I’ll just figure out I should listen to her. :)
    Brock @cleverdude recently posted..If You Have a Teenager, You Need an Emergency FundMy Profile

  3. I’ve absolutely felt peer pressure AND sales pressure when making purchases in the past. Luckily they were relatively small purchases and I’m even glad I had that experience. Now I’m much better at holding my own and not letting the pressure get to me, which will be important as I start making larger and larger purchases.
    Stefanie @ The Broke and Beautiful Life recently posted..When FREE Isn’t Worth It.My Profile

  4. Liz says:

    I’m thankful that I have internet to help me make big financial decisions. Whenever I am unsure about an investment or purchase I almost always spend some time searching out information on the internet. Normally this gives me some reassurance that we are making the right decision. However, I was pretty nervous when we purchased our house. I don’t know if that decision ever feels right lol.
    Liz recently posted..Should I Get a Master’s Degree?My Profile

    • Adam Buller says:

      It does make you wonder what we did before the web doesn’t it Liz. A good chunk of the search traffic coming into this blog comes from people who are searching for help with the biggest financial decisions in life and I’m sure other blog owners experience the same thing.

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