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Your Wealth Depends on This Vital Skill Andrew Snyder, Editorial Director, The Oxford Club
A Note From the Managing Editor: Living a wealthy life is about so much more than the money we make. The Oxford Club (Investment U's publisher) prides itself on giving Members the tools necessary to achieve true freedom. But getting there requires far more than a strong grasp of current market trends...
This week, we're stepping out of our usual confines to see how a small change in thinking can greatly improve your life and the lives of those close to you.
 If you want to live a good, rich life, you'd better be good at making decisions. I'm about to show a simple way to ensure you always make the very best choices.
The older I get and the more money I make, the more I believe life is little more than a set of decisions - one after the other after the other.
Some are easy. Bacon or ham.
Some are mindless. Drive on the right side of the road.
Some are tough. Stick with her... or leave the kids behind.
Many involve our money. Buy or sell.
No doubt, a good life requires good decisions. Knowing that our everyday choices are what make us who we are, I set out to study them a few years ago. I was astonished by how vital it is to have solid decision-making skills.
They are what set us apart. It's not our IQ... not our socio-economic status... not our race or gender... but our ability to choose "A" or "B."
During my research, I uncovered three simple steps that make even the toughest decisions virtually mindless.
I've since honed these skills by working directly with corporate executives, police officers, surgeons and even bush pilots.
What's crazy is I've found these three steps work equally well with nearly every type of decision we make. Whether it's a snap judgment on a question asked while you're in the middle of a task... or when deciding on major life decisions.
These three steps work.
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The first, and hear me out on this one, is to trust your initial reaction. In other words, trust your gut.
But let me be clear. It's not your stomach talking... it's your unconscious brain signaling you with a language it knows you understand - your core emotions.
It sounds cliché to "trust your gut," but recent major medical research proves there's something to the adage.
The human body is an incredible organism. It's quite skilled at producing what science is now calling somatic markers. The idea is complex. But in the simplest terms, your brain is remarkably adept at keeping track of each decision you've ever made and measuring its outcome.
It's all unconscious, of course. There's no way you could consciously keep track of it all.
But right there in the front of your brain is something quite powerful called the ventromedial prefrontal cortex. It's thought that this small section of your brain is the super-processor that can take all of those past experiences and turn them into an emotion - a hunch or an intuition - that your conscious mind can use.
But, of course, your brain can't produce a signal if your "experience tank" is empty.
Fortunately, there's a way to supercharge this key part of the decision-making process.
You do it by being curious.
It's simple, really. The more you understand and experience, the better your decisions will be.
Think about the first time you ever drove a car. If you merely hopped behind the wheel without studying the rules of the road or without knowing the brake from the gas... your first trip was quite a ride.
But if you studied, it was far easier.
In other words, turn off the damned TV and do something. Open a book. Have a conversation. Get involved and be active. It's the key reason I volunteer more than 300 hours of my time each year.
Even if what you're doing today isn't related to the decisions you'll make tomorrow, as long as you're stirring some sort of useful emotion, your brain will store it for later.
The more you experience, the smarter your decisions. It's proven science.
Finally, you need a system that acts as a sort of checks and balances. You need to know when a question or problem is an outlier... when your experience isn't enough.
For that, I've found a simple question will tell you what to do next. Ask yourself, "What's the worst that could happen if I make the wrong decision?"
Remember, with the first step, you're entirely relying on your subconscious mind. In the second step, you're bringing in your conscious. In this third step, you're going overtly conscious by envisioning the worst-case scenario.
By understanding the worst-case scenario, you'll automatically ask yourself key follow-up questions.
For example...
In the business world, it may be up to you to decide if your company should charge more for a product. What's the worst that could happen if you make the wrong move?
Perhaps you could lose a million-dollar client. Will the company suffer more by keeping that client with low prices? Will you lose your job if you lose the client?
By asking those simple follow-up questions, you'll trigger a new set of signals from your unconscious mind. And, chances are, you'll have adequate past experiences that will stir core emotions.
The best way to see how powerful these three simple steps are is to put them in action.
Spend the next five days breaking down even your simplest decisions. Listen to what your body is telling you. Pay attention to how your past experience plays into the process - and understand how valuable that experience is.
Finally, envision the worst-case scenario.
Remember, a wealthy life hinges on no more than an unending series of choices. Make sure you're doing everything you can to hone your decision-making skills. Practice like your future depends on it.
It does.
Good investing,
Andrew
P.S. I'd love to hear from readers on this. What are some of the steps you take when making important decisions? Is there any advice that's been particularly helpful to you? Let me know via email here.
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The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. The stated returns may also include option trades. 
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