Have you ever been in a financial situation where you’ve analyzed all the options to death but you’re so overwhelmed that you have taken no action? Ultimately leaving the situation unresolved? The term has been labeled analysis paralysis and can deter your financial journey.
Being an accountant, I can appreciate the predicament of people who suffer from analysis paralysis. You don’t want to make the wrong decision or miss something so you analyze every little detail and look at everything from a variety of angles. The problem is that in these situations we can talk ourselves into anything that will delay changes that we need to make in our lives. We tell ourselves, “We need to keep that credit card open just in case of emergencies,” “We shouldn’t stop contributing to our 401(K) to pay down our debt because we’ll miss that match,” or “Our debt will get paid off eventually if we keep doing what we’ve been doing.” In the end, all of the analysis just holds us up from making any decisions and we continue to do the same thing that isn’t working.
If you suffer from analysis paralysis just let go. Ease up on trying to obtain the perfect plan and just go with what you’ve got. It might not be 100% the way you want it, but doing something at 80% is always better than the 100% plan that you never start. So instead of rationalizing why a getting out of debt plan won’t work, just start it! I have interviewed a couple dozen people who have done it and none of them have regretted it so far. Or, how about the next time you have a big decision to make, set a time limit on it, gather as much information as you can and make a decision to act by the deadline. This way your dreams will actually happen instead of continuing to decide which way to go.