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Money Matters Blog

Wednesday, October 26, 2011

Financial Decision Making: How to avoid decision fatigue

Did you know? The human brain is more susceptible to impulsive decision making at the end of the day than at the beginning. It’s called “decision fatigue” and is caused by the wearing down of willpower and mental energy throughout the day by all the decisions consumers face, according to the NYT.

Decision fatigue can negatively affect financial health if we allow ourselves to make big decisions at the wrong time of day. Wise financial choices require a strong, clear state of mind. That’s why morning is the best time of day to make important decisions. 

The more decisions we make throughout the day, the less strength we have and the more susceptible we become to impulsive purchases.  This leaves us vulnerable to marketers and salesmen (who call us at dinner time!!?) so that by the end of the day, decision fatigue can cost us money.   

Here are some tips to help avoid decision fatigue: 

·         Arrange to make important financial decisions in the morning
·         Avoid shopping trips after work
·         Make lists and plan ahead 
·         Set financial goals to help you become financially fit.

Nobody wants to end the day with buyer’s remorse and fortunately proper planning can help avoid decision fatigue. 

For more information on how stay financially healthy, read our previous posts on budgeting and saving. Community Financial Credit Union is here to help you with any questions.  Stop by one of our convenient branch locations for further assistance.

Posted by: Community Financial
Community Financial Members Federal Credit Union is a not-for-profit, full-service financial institution owned and governed by its membership.

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