Decisions are significant players in determining the financial circumstances of your life.
One bad decision can cost you significant money and put you behind the eight ball for many years.
Bad decisions are like dominos – they lead to more bad decisions.
When a bad decision costs you significant money, it puts you in a position of weakness.
When you are in a position of weakness, all future decisions you make are made out of necessity – to solve some immediate short-term immediate need, which is usually a financial one.
This immediate financial need, a need you created by making a bad decision in the first place, then forces you to take shortcuts that an individual in a position of strength would never take:
- Out of desperation, you fail to do your due diligence (homework) before making an investment;
- Out of desperation, you partner with someone whose background you really don’t know enough about;
- Out of desperation, you ignore facts or details that a non-desperate person would never ignore.
One bad decision can put you in a position of weakness and cause a cascade of poor decisions that act like an anchor, dragging you further down into a financial abyss.
Here’s the rule when it comes to major decisions:
Never make a major decision when you are in a position of weakness. Only make major decisions from a position of strength.
Position of Strength Decisions are almost always sound decisions.
Position of Weakness Decisions are almost always poor decisions.
About Thomas C. Corley
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