Choices: Cut to the core

When you face unfamiliar financial stress, the choices are difficult. But they are still choices – and we know how to do that. We’ve been making choices since we were small children deciding what book we wanted for a bedtime story, or which treat to order at the ice cream store.  I know – these days we would LOVE to face such simple choices, right? Sometimes the key to dealing with difficult choices is to make them more simple — cut through the extraneous details and get to the core of it.

Faced with a budget shortfall, the hard truth is that we no longer have the money for the lifestyle we enjoyed in the past. To put it simply: I can’t still have everything. So which do I need and want the most?

Think about something special to you – maybe it’s a monthly subscription, or your favorite soda or beer, or planting flowers in your pots and your yard. Whatever this special thing is, we’ll call it  your “treasure.” It’s hard to give up. But ask yourself: would I rather have “my treasure” or running water? If the answer is running water, then you’ll pay the water bill. Would I rather have “my treasure” or keep my car? Your financial decision will follow your answer.

Sometimes we say “I was FORCED to give up ‘my treasure.'” But it’s not really true. We could have kept the “treasure” and given up something else. We kept the “something else” for a reason. Instead of feeling defeated and deprived, we can feel PROUD of the decision we made. We gave up something less important in order to keep something more important.

Looking at the bare facts can help us feel a little better about choices we wish we weren’t facing. Simplifying makes some things really clear.

Really? Of course, it’s not always as simple as I’m trying to make it. Sometimes we have more options. Perhaps I can keep “my treasure” and just delay my car payment. That means I’m choosing to make extra payments later. In order to do that, I need to be REALLY certain that my income will go back up sometime soon. – it’s a risk. Having the option to delay or make partial payments dilutes the simplicity I’m trying to convey. After all, real adult life IS more complicated than childhood decisions.

Even so, if we cut through some of the static, we get down to the bare choices. It’s always about choosing what is most important to ourselves and our families. Sometimes it’s also about carefully weighing future risks and deciding if we’re willing to take them. If we choose to take on the risk of extra payments in the future, we know we need to start now to plan for them. Accepting that reality is also part of cutting through the details and looking at the core of the decisions we’re making.

Barb Wollan

Barb Wollan's goal as a Family Finance program specialist with Iowa State University Extension and Outreach is to help people use their money according to THEIR priorities. She provides information and tools, and then encourages folks to focus on what they control: their own decisions about what to do with the money they have.

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