Hunches in Bunches

Ever find yourself dithering over what to do?  You guess and second-guess the right course of action. You just can't take the first step forward. Inertia is nailing your feet to the floor.

Hunches in Bunches is all about a lad who simply can't make up his mind. He meets a number of Hunches – the Very Odd Hunch, the Homework Hunch, the Four-Way Hunch, the Sour Hunch, and the Nowhere Hunch – each of which has its own opinion. The boy becomes so confused he freezes.

That's how a lot of people feel when it comes to making decisions about what to do with their money. With differing opinions on which way is the right way, no way is where we go.

Let's take the example of life insurance. One side of the argument says permanent life insurance is a waste of money. The other side says term insurance is a rip-off. And there you sit in the middle. As the protagonist in Hunches of Bunches says, "The trouble is I had a mind, but I couldn't make it up." Not surprising since every argument seems to carry as much weight as the next.

Can I tell you there's no one right answer for everyone, which is why all the alternatives out there exist. Permanent is right for some people. Term is right for others. And what you must do is figure out what's right for you.

The same holds true for the RRSP vs the TFSA debate; yes an RRSP is the single best retirement savings vehicle in Canada, expect when it doesn't work for YOU. It isn't about one size fits all when it comes to money. It's about creating the custom fit that's just right for you. And you have to be careful not to be so influenced by all the Hunches out there that you end up like One Duck Stuck in the Muck: unable to move in any direction.

While you don't want those Hunches to boss you around, you should listen to your instincts. Don't be too quick to follow them, but don't ignore them completely. Instead ask yourself, "Why did I think that" or "why do I feel this way?" And listen to your little voice's answer.

Make sure you know all your alternatives when you're trying to make a decision. Make a list and check it twice. Write down all the options you have available.

Know what you know; find out what you don't know. You can't make a sound decision if you're ignorant of the issues, rules, upsides and downsides. Go back to your list of alternatives and identify the pros and cons of each potential action you can take.

Take your time. Put away your list for a couple of days and then come back to it. (You have to come back to it or you're procrastinating yourself out of the decision.) A little distance will put some perspective on the decision you have to make.

Then make the damn decision. Ultimately, you must take some action. Endlessly analyzing and agonizing won't get you closer to a solution. Action will.

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