We have to make decisions every day. Big ones and little ones.
Every decision comes at a cost. If we wear our blue socks, we can’t wear our red socks. If we buy this house, we can’t buy that house.
We get something from each decision we make which we imagine will satisfy us. If it doesn’t, we might make a different decision next time.
We probably have a clear understanding of what we get from making a decision. I don’t think we often have a very clear understanding of what we give up because of that decision. There are many more things that won’t happen than will after we act on a decision.
Leaving your red socks at home probably isn’t an issue. But for bigger decisions what we’re potentially giving up needs more attention. Both sides must be understood or explored at least. Both are equally important.
In the end we will regret the decisions we didn’t make more than those we did.
In financial planning, reducing future regret is more than just a sensible starting point. It should be our guiding light.