Financial Decision Template
Financial decisions are often complex and fraught with emotion. This template helps you cut through the noise by applying a rational, structured framework to your biggest money choices. Whether you're considering a home purchase, a major investment, or a plan to tackle debt, this guide will help you quantify the trade-offs, understand the true costs, and build a plan you can feel confident in.
Capture this play inside the Decision Log and make it your own.
What's Inside This Template
This template provides a robust framework for financial analysis, including:
Cost-Benefit & ROI Prompts: Go beyond the sticker price to calculate the true return on investment, factoring in all associated costs and long-term benefits.
Risk Assessment & Pre-Mortem: A dedicated section to brainstorm what could go wrong, how likely it is, and what you can do to mitigate those risks before you commit.
Opportunity Cost Calculator: Prompts to force you to consider what else you could do with the same money, ensuring you choose the highest and best use of your capital.
Timeline & Milestone Planner: A tool to map out your decision, implementation, and review dates, turning a choice into an actionable project.
How to Use This Template
- Define the Decision: Start with a clear question (e.g., "Should I buy this house?" or "Should I invest in this bootcamp?").
- Quantify Everything: Work through the prompts, assigning dollar values wherever possible, even if they are estimates. The act of estimating forces clarity.
- Run the Scenarios: Use the Pre-Mortem section to imagine both failure and wild success. What do those paths look like?
- Compare Alternatives: If you have multiple options, create a separate log for each and compare them side-by-side. The best choice is often revealed through comparison.
When to Use It
When deciding whether to buy a home versus continuing to rent.
When evaluating a significant investment opportunity, such as stocks, real estate, or a private business.
When considering a large, non-essential purchase like a car, a luxury item, or an expensive vacation.
When creating a strategy for paying down debt (e.g., avalanche vs. snowball method).
When deciding whether to pay for a degree, certification, or other educational program.