Financial Decision Fatigue
Decision Fatigue: In decision making and psychology, decision fatigue refers to the deteriorating quality of decisions made by an individual after a long session of decision making. It is now understood as one of the causes of irrational trade-offs in decision making.
The problem with decision fatigue
Bad decisions lead to bad outcomes which will result in reduced confidence
Procrastination – no decisions often leads to a decision
Impulsive decisions – lack of logic or emotion often leads to regret
The path of least resistance is not the path to prosperity
Solutions to decisions fatigue
Routine will automate the small decisions leaving time and energy for the big ones
Put big decisions on the calendar – use time to your advantage.
Eliminate distractions – when a decision is required make sure you are in a good place
Write it down – emotions turn off and logic turns on
Don’t operate in a silo – use your support system
Have a value system – these are pre-made decisions