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Make better decisions – Gala and Anna – Correction

featured image for post make better decisions

Help Gala and Anna make better decisions for their futures and then review your own decisions.

  1. Gala loves cooking. She wants to open an eatery in her hometown. Which questions should she ask?
  2. Anna wants to build a house to avoid paying rent. Which questions should she ask?

You will find below some ideas of questions. Of course, you can have different ones. The most important is to ask yourself questions and take the time to make some research.

Gala

Questions about herself, her needs and feelings

  • How much does she need per month to live? Can she make this amount of money with an eatery?
  • Does she have enough knowledge to open a business? Does she feel strong enough to do it? Does she need support from her family?

    Questions about the options: Costs/Benefits? Risks/Rewards?

    • Cost/Benefits: Is owning an eatery the best business idea? How much does it cost to open (cooking utensils…) and to run (ingredients…)? How much money can she expect to make? Explore some other options: open a boarding house or a grocery store for example.
    • About the risks: are there already a lot of eateries? Or if there is no other eatery, is there a reason why it would not work (not enough clients?)

Questions about the decision: back up plan

  • What should she do if there are not enough clients? Move to another location? Or open a different business?  At which point should she close the business before it loses too much money?

Anna

Questions about herself, her needs and feelings

  • Why does she want to build her house? For herself, her children?
  • What kind of house does she need exactly? What are her “NEEDs” and her “WANTs”?

    Questions about the options: Costs/Benefits? Risks/Rewards?

    • Cost / Benefits: Is it cheaper to rent until the end of her life or to build a house. How much does it cost to build a big house compared with a medium one and does she really need a big house? Does she have quotes from different constructors? Reviews of these constructors by different clients?
    • About the Risks/Rewards: Can a typhoon destroy the house? Does she have enough money to finish building it even if she loses her job?

Questions about the decision: back up plan

  • What if the constructors are not reliable?
  • What if a typhoon comes when the house is not finished?
  • How to make sure there is no issue when building the house?

Your own decision sheet

  • My decision:
  • Why do I want to do that:
  • How do I feel about it:
  • What are the other options:
  • What are the costs and benefits of each option:
  • What are the risks and rewards of each option:
  • What do I do if I fail:
  • What do I do to reduce the risks of failing:

Become a decision master! 6 steps to make better decisions.

featured image for post make better decisions

How to make better decisions especially financial ones? Everyone makes poor decisions at some point in his life. Sometimes it’s ok to let it go but for important decisions, it’s better to follow a rational approach. Analyze the situation, look for information, compare multiple options, make a decision, have a back-up plan and review regularly.

1. Analyze the situation

Make sure to know what your objectives are. Be aware of your emotions and don’t let them cloud your judgment. For example, if you are considering buying a  motorbike to your husband, is it because he really needs it or because you don’t dare to say no?

In this situation, your objectives are to keep a good relationship with your husband AND investing your money wisely. If your objectives are clear, it will help you be more creative and consider more options. For example, you could discuss your financial situation with your husband and decide than instead of a motorbike, you will buy a tuk-tuk/taxi so he can start making some money himself as well.

2. Look for information

Give yourself time to search for neutral information and don’t rely on only one source of information. It’s not because someone is your friend that he knows best.

Look on the internet to search for information. If you plan to buy something, go to different sellers to compare prices and conditions.

If you plan to open a business, look around first and see if there are already of similar businesses. If there are already a lot of similar businesses, the competition may be too harsh but if there is no one it may also indicate that there is no potential market and buyers.

3. Weigh your options

Compare carefully your options. Weigh costs against benefits and risks against rewards. Some investments, for example, seem very good because they can bring a lot of money but maybe the risks are also very high or it actually requires too much time compared with the benefits.

4. Make a decision

You must be willing to make a decision. Don’t let life or others decide for you.  If you hesitate a lot, look for additional information if you need it but give you a deadline. For example, give you one month and then make your decision.

5. Have a backup plan

When you make a decision, always take time to think about what you will do if things don’t go as you planned.

For example, if you decide to launch a business, what is your back-up plan if it fails? What will you do if things don’t work out?

6. Review

Review your decisions regularly, when you succeed and when you fail! Have a notebook and for each decision you make, note

  • Your objectives and feelings
  • The options you considered, their costs and benefits, their risks and rewards
  • The one option you chose and why
  • Your back up plan
  • And later the results and how to improve in the future

Conclusion: ask questions!

To make better decisions, the key is to ask a lot of questions!

  • Questions about yourself: what are my objectives, what are my feelings?
  • Questions about the options: what are the options available? Costs/benefits? Risks/rewards?
  • Questions about the decision: what is my back up plan? What do I do if things don’t work out? What can I do to avoid problems?
  • Questions about the results: what worked/did not work in order to improve your future decisions

Now help Gala and Anna make better decisions for their futures and then review your own decisions!

  1. Gala loves cooking. She wants to open an eatery in her hometown. Which questions should she ask?
  2. Anna wants to build a house to avoid paying rent. Which questions should she ask?

And then, take your notebook and for your top 2 dreams, write down

  • Your objectives and feelings
  • The options you considered, their costs and benefits, their risks and rewards
  • The one option you chose and why
  • Your back up plan

Then share with us! Is the exercise helping you to feel better about your decisions?

Read the correction of the exercise below:

Make better decisions – Gala and Anna – Correction

Four tips to go back home for holiday without ending up broke…

gift when holiday

Do you fear going back home for holiday because it means all your savings will be gone or worse you may have to borrow money? Follow these 4 tips!

1. BUDGET IN ADVANCE! Budget one year in advance. Make the list of all the people you need to make a gift to (including distant relatives and neighbours) and how much money per person. Make the total and then divide per 12 so you know how much to save monthly. And then stick to it!

2. GIVE LOVE! Think about hand-made gifts, recycled decorations. You don’t have to compensate for being abroad, you already provide support for the rest of the year. Make it special your own way!

3. TALK! Talk with your family, hold a family council and decide how much you want to spend for holiday and gifts keeping in mind all the other things you need to pay for (education, house…), and savings you need to keep for emergencies and investments. Make your family responsible with you, not dependent on you!

4. NO LOAN! Don’t take a loan! When you borrow money, you have to pay interest rate meaning an extra expense – Give meaning to it: for example if I don’t take this loan for holiday, I will be able to pay education expenses for 3 months.

Do you have other tips to avoid over-spending when you go home for a holiday?

Five ways to avoid over-extending your stay abroad

over-extending stay abroad

Do you want to be a domestic worker for your entire life? Discover here the 5 ways to avoid over-extending your stay abroad.

  1. Set realistic financial goals with your family – no more than one or two.  Make them responsible with you. For example, discuss the number of years you should spend abroad and if you can share the burden. Learn to say NO and how to talk about money with them. Rehearse before you talk to them to make sure you don’t make them feel guilty but still make them understand that they need to learn to manage money well!
  2. Stick to your plan, don’t buy unnecessary things and be careful of investment schemes. A dollar saved is a dollar earned!
  3. Teach them the value of money and work. Make all able adults of your family make their own money or get training. Before you open a business, plan for it and learn business management to make sure it does not fail. Don’t give your children all they want, teach them the value of money.
  4. Limit your charity work. Being kind is not being gullible and naive.
  5. Keep your savings a secret even from your family.

And you, what are your plans for your future?

Read the full article here by Pinoy OFW:

How to Avoid Over-Extending Your OFW Career