How to Make Decisions

Steps to Make Decisions

We make decisions from the moment we wake up till we go to bed on a daily basis. Some of the decisions we make intuitively and some of the decisions we make by giving it a lot of thinking and consideration. Decisions have a huge impact on our lives. Some of the decisions we take can make the difference between being alive and dead within seconds (such as while driving) and some of the decisions can impact our life immensely after 10-20 years (such as investing in the right type of assets or getting married to the right person). Who we are today is based on the result of the decisions we made in the past. Who we will become tomorrow or in the future will be the result of the decisions we make now and in the future. It is important throughout our lives to make the correct decisions to increase our success rate of living a better life.

Decisions can be roughly categorized in two classes, regardless what sorts of decisions they are: Calculated decisions and non-calculated decisions. Let’s take talk about these two a little bit.

Non-Calculated Decisions – Emotional decisions, intuitive decisions, decisions based on past experience, and so on are all examples of non-calculated decisions. Most of the decisions we take daily are non-calculated decisions and we don’t think or spend much time on these types of decisions. Although non-calculated decisions seem to be not that important and we are in habit to decide on it fast, making the wrong non-calculated decision can ruin our life, just like calculated decisions.

Calculated Decisions – These are the decisions that are systematic, analytical, logical, and calculative. We take a long approach and do a lot of research and follow a step-by-step procedure to come to a conclusion. Most of the life’s big decisions fall into this class. Some examples are: Who should I marry? Should I quit my current job to accept another offer? Where should I retire? Should I be an entrepreneur or a 9-5 employee for life?

Now, is there any way to make a better decision? While there may not be a single, foolproof approach to make better decisions, here are some steps to consider in making good decisions.

1. Identify your decision or the purpose of the decision

2. Identify your objectives or what you are expecting from the outcome of this decision.

3. List all the possible outcomes that can happen due to this decision.

4. See yourself to the extent of each of these outcomes. Look at all the pros and cons that will come due to this decision.  Imagine yourself living with one or several of the outcomes that will happen due to your decision. You can add your past experience, knowledge, intuition, calculation, analysis, etc. to seeing yourself how things will be, how comfortable and happy you will be, and how better it will be for your future because of this decision.

5. Make the decision that you like best in number 4.

Sometimes decision making can be really tough regardless of how much thinking you put into it. Research has shown that it is incorrect to think that calculated decisions are always better than instant, snap decisions. There will be times in your life when you will need to make decisions beyond logic and calculation – based on your instincts or emotion. This is just fine. We humans are emotionally driven quite often and following logic or calculation will not simply make sense during those times. If you need to make a decision, whether it’s a calculated or an emotional one, make a solid decision, regardless of whether it makes sense to others or not. Stick to your concrete decision to the end – and if it happens to be a wrong decision, have no regrets. Just learn from it and move towards the future.

Real Return Bonds (RRB) and Treasury Inflation-Protected Securities (TIPS)

Real Return Bonds And Their Place In Your Future

First Published Date : October 25, 2009 ADawnJournal.com

With governments around the world insisting that their recessions are over and that the green shoots of economic recovery are now visible, there is an increasing line of opinion holding that there is no better time than now to start investing – or to call a halt to a self-imposed period of no investment – in order to see the benefits of this recovery period for all they are worth. However, caution is also a concern for many given how recent the recession’s lowest points were. At this time, a secure investment with a reasonable return is the absolute ideal for anyone looking to secure a bit of money for the future.

When it comes to secure investment, it is tricky to be absolutely sure of getting what you need for your money. While the economic indicators show that the recession has finished to all intents and purposes, buying shares at the present time is still a little perilous, with companies still having to make cutbacks to deal with the realities of a post-recession age. A secure investment, it must be said, is also an investment which is unlikely to bring a massive pay-off. High returns are still only likely from high-risk investments.

If you are in a position where a comparatively low return for no risk sounds like a good idea, however, then your best choice may well be a real return bond (RRB). Very similar in nature to the American TIPS (Treasury Inflation-Protected Securities), the real return bond is an investment which links your savings to the rate of inflation. As well as this interest is paid on the bond to the rate of interest. Practically speaking, this means that if you buy a $1,000 bond and at the six-month mark the interest rate is 4% and inflation at 2%, the principal of your bond will rise to $1,020 and you will receive a further interest payment of $20.40. As the interest rates climb, payments will continue to accrue based on the principal of your bond.

The important thing for an investor with an RRB is to hang on to it until it matures. If you do that, the realization price is based on the interest rate at maturity while if you sell it prior to maturity you will find that the price is based on the prevailing interest rate – and may be less than you originally invested. This poses problems for some, as the typical life of an RRB is thirty years. If you have the patience to wait this out then the return at the end can be considerable – although it is possible for the RRB to return less than face value if, over the life of the bond, there has been a net deflation.

The above warnings are simply worst-case scenarios however, as the fact of the matter is that should you invest in an RRB you will most likely be in it for the long run, and there have been almost no 30-year periods which have seen a net deflation in the market.

What RRBs should guarantee you is an above face value payout on maturity. This is useful if you are looking to support a future venture. With the 30 year life of most RRBS, many people buy them in their mid-thirties as a potential cushion for their retirement. As no-one is quite far-sighted enough to predict market behavior by the year for the next three decades, there is little benefit in assuming exactly how much you will get for a matured bond after it matures, but it is enormously unlikely to be any less than its face value and, with interest and inflation behaving normally, it can be considerably more.

Buying an RRB is something worth doing if you have a pot of money for investment and are content for it not to be liquid for an extended period of time. As long as you fit these criteria, it is an excellent way to feather your nest for the future. Most usually, the face value of a new RRB is $5,000, but there are many available for a lower price. There is also nothing to stop you from holding several bonds if you have the liquidity to invest in them. If you decide to invest in a real return bond, then your first stop should be the Bank of Canada website to consult the figures there for a bond’s “real yield” and “real price”. This will enable you to calculate the amount that you will have to pay for a bond, and how much you will get on maturity if the market behaves realistically.

Once you have gleaned this information it is time to call your broker and have a conversation, asking for information pertaining to the current and potential future benefits of buying the bond that you have identified. Once you are invested, settle in to see what the market has in store for you and be conscious that this is a long game.

As mentioned at the beginning, RRBs are not dissimilar to the American TIPS. It is possible for Canadians to cut out the middleman and directly purchase a TIPS from an American broker or the US Treasury. However, unlike an RRB, a TIPS bought from the US Treasury cannot be held inside a tax-sheltered account such as an RRSP, so it makes little sense to do things this way. It makes considerably more sense to buy direct from a broker. The major substantive difference between these bonds is that TIPS are guaranteed to pay out at least face value on maturity. Additionally, the US and Canada have different tax rules and regulations, so when deciding which you should buy it is beneficial to check the market rates in both countries.

Naturally, each possibility has its advantages and disadvantages, and the two countries will often see different economic performance over the course of an economic period. Both should, however, see you with a creditable return on your investment for very little risk.

Last Day in Auckland – Leaving New Zealand | Auckland Travel Blog

New Zealand Travel Blog: Part 15

Auckland Sky Tower | New Zealand Travel Blog: Part 14

My flight was at 6:30 PM Dec 14, 2018. I had the whole morning and afternoon to get ready for my trip to the airport. I would be reaching Sydney at 8:05 PM.

I would have to check out from my hotel at 11, so I took a mini-stroll in the downtown area near my hotel, had something to eat (Auckland street food), and came back on time to check out at 11.

My transportation to the airport was a shuttle service called Super Shuttle. It was from hotel door to airport service and was arranged by the hotel. The cost was $17.50 NZD, which was around $11.50 USD - not bad at all for a shuttle airport trip. Taking a public transportation SkyBus would have cost the same.

After checking out at the hotel, I was waiting for the shuttle to arrive. Because my flight was at 6:30 PM, I would have had a lot of time at the airport - which I didn’t mind because it would give me a plenty of time to complete a lounge video and try some food at Quantas’s lounge and pass some quiet time. 

The airport shuttle came slightly before the scheduled time. It was a luxury van and had a separate luggage trailer section attached to the van to carry suitcases and the like. This saved a lot of space inside the shuttle and made travel more comfortable. Another advantage the super shuttle had was its ability to use the dedicated bus lanes. It would save a lot of traffic time during rush hour.

I was very satisfied with the super shuttle service. The driver was courteous and helped me with my carry on in and out of the airport.

As I was heading towards the airport, I used my last minutes in the country observing wonderful New Zealand and appreciating its astounding beauty.

Why I Switched From Regular Peanut Butter to Organic Peanut Butter

Peanut Butter: Regular Vs. Organic

Let me start with some of the health benefits of peanut butter very briefly.

- Most of the fats (about 47 percent) in peanut butter are monounsaturated fat. This is the fat that lowers bad LDL  cholesterol.
- Peanut butter also contains polyunsaturated fat (about 27 percent). This is the fat that raises
good HDL  cholesterol.
- Peanut butter contains about 8 percent dietary fiber.
- Contains micronutrients such as Vitamin E, Niacin, etc.
- Contains minerals such as calcium, magnesium, potassium, copper, etc.
- Contains Resveratrol, which has natural anti-microbial, anti-inflammation, and anti-aging properties. It helps body to effectively fight off bacteria and various types of fungi.
- Contains folic acid, phytic acid, and phytosterols.

But Beware of Peanut Butter That Is Not Organic

Some of the benefits I mentioned above look really good. However, these benefits will be shadowed by the adverse effects – if your peanut butter is not organic. Consider the following facts –

- Peanuts are grown on the ground and have have soft and porous skin. Non-organic peanuts have very high counts of pesticide residues, as it is a crop that is heavily treated with pesticide. These carcinogenic pesticide residues can cause cancer and other harm to health.
- Non-organic peanut butter has added hydrogenated oil, added sugar, and added salt.
-  Organic peanut butter may have higher nutritional value than traditional peanut butter.
- You will feel the difference in taste in organic peanut butter. It does not taste as good as regular peanut butter (because of no added sugar, salt, fat, etc). It will take some time to get adjusted to its taste.
- You can easily check what foods have what types of pesticides here easily: What’s On My Food?

And I Made Up My Mind

After researching on the pluses and minuses of organic and regular peanut butter, it was not hard for me to do the switch as all the positives outweigh all the negatives. What will be your decision? I suggest you to do some reading and research before you enjoy your next serving of peanut butter.

What is Refinancing a Mortgage?

Refinancing Your Mortgage

Often, we will all find ourselves daydreaming of something we would like to do or like to own, and immediately the part of our brain that dictates realism will snap shut on the daydream and remind us that we simply do not have the money to spend on indulging our idle fantasies. While there is every need to maintain a realistic outlook on life, it should not be at the expense of our dreams, and if the opportunity arises to enjoy ourselves in a way that will not bankrupt us, then sometimes we owe it to ourselves to at least consider it. However this does not change the fact that money is not always so easy to come by. One solution that a lot of people use is a refinancing option on their mortgage.

By refinancing your mortgage what you are effectively doing is extending the term of the arrangement in return for extra cash. This is something that a lot of people do for practical reasons like renovating their existing house. Others will extend the term of their loan in order to lower the repayments and enable them to remain in a house where they are finding the mortgage payments hard to maintain. Either way, when you refinance a mortgage you are allowing yourself financial breathing space in the short-to-medium term and accepting a longer time will be spent paying off debts. If you are happy with the fact that you will have less time mortgage-free once the loan is fully paid off, then refinancing can open a lot of doors for you.

One reason why refinancing is so popular is that it is given at the same interest rate as most mortgages. If a mortgage holder also has credit cards or loans with a higher rate of interest, they can use the refinancing to pay off the higher interest credit, allowing themselves as a result to save a great deal of money on repayment. In consultation with your lender – or another lender altogether – you can negotiate a solution to most situations, one which will allow you to feel as though your future can be free of major financial worry. It is, nonetheless, worth paying attention to the fact that none of us can infallibly predict the future, and if you are to refinance it is a good idea to look at making the term as short as possible while still retaining some element of manageability in the repayments.

Whatever your reason for refinancing, it is certainly one of the more reliable and sensible methods of raising quick capital, and as long as you have a good payment history on your mortgage you should have very little difficulty securing a satisfactory refinancing deal. Ask yourself whether the refinancing deal gives you enough freedom to be worth it, and whether – once the money has been put to use – whether you will be able to live comfortably with the repayments. If the answer to both questions is yes, then refinancing can work for you.