How to Make Good Decisions

If You’re Overconfident

Your cousin has invited you to invest in his new restaurant. He has never run a business and neither have you, but you’ve always wanted to. You’re really excited about this opportunity, and besides, you’re absolutely positive he wouldn’t steer you wrong.
 
 How to Avoid It: 
 

• Play devil’s advocate. Look for information that disputes your beliefs. Are you sure the investment is a sound idea? What’s the evidence that this isn’t smart? If your hunches are correct, they’ll withstand scrutiny. If not, you may have saved yourself regret.
• Find a specialist whose expertise you can trust―in this case, an investment strategist―and ask about hidden upsides and downsides of your options. Use these as “grist for the mill,” says professor Richard Kinnier, Ph.D. Considering other, informed perspectives will broaden yours.

 

If You Waffle

You’re due to visit your husband’s family for the holidays. You’ll be spending on airfare, so tacking on a vacation nearby sounds good. But, then, a holiday someplace else might be better. And maybe you can’t afford it. Perhaps you should stay home this year…
 
 How to Avoid It: 

 

• Think of the times you got it right. “Look at tough decisions you made and stood by in the past, and examine the process you used,” says Kinnier. “Tell yourself you can do that again.”
• Seek out a role model. Ask someone you respect how she handled issues you’re struggling with, like the fear that a decision might be disastrous.
• Force yourself to choose. Analyze your options, take some deep, relaxing breaths, and make a decision. Then sit with it for a few days―or even a few weeks, if necessary―until it feels right, says Foster. Don’t use this as an opportunity to waffle. It’s simply time for your decision to sink in.
• Still can’t settle? Flip a coin. This is not to resolve your path but to determine your reaction. If you find you’re disappointed or excited, you “may be secretly rooting for a result,” says Kinnier. Choose that route, then stick to it.