The 10-10-10 Rule For Decision Making That Will Change Your Financial Life Forever (2024)

As soon as we ask for any monetary advice, save first spend later, break down your targets into short but achievable goals, and the 30 day rule are just some of the many money hacks that we are often bombarded with. However, amongst the never ending list of rules, habits or hacks that we are suggested by parents, friends or as form of inspiration from successful people, there is one rule that can change your financial life in more than one way. Eager to know more? Read on as Worth brings to you the 10-10-10 rule that can be a life changer bysimplifying your decision-making.

The 10-10-10 Rule For Decision Making That Will Change Your Financial Life Forever (1) shutterstock


What is the 10-10-10 rule?

In all spheres of life, whether it's personal or professional, decision-making is easier said than done. More so in case of the big decisions that can have long term impact on your life. Even when we attempt to weigh the pros and cons of making a decision, the task can turn out to be a tedious one. And most of us wont deny the fact that majority of the decisions that we regret, were either emotional, hastily taken in the heat of the moment. Later on, they turned out to be less practical than we thought. Right? If yes, then just breathe easy and unlock your mind to understand the 10-10-10 rule. After all, its better to pause and reflect, instead of having nothing but regret later on.

So, whether it's about taking the new job offer, making investments, buying or selling a home, or even taking personal life decisions like marriage, this rule can help you come out of most dilemmas by providing you a long term lens.

The 10-10-10 Rule For Decision Making That Will Change Your Financial Life Forever (2) pic petsplusmag

According to the rule, whenever you are stuck in a dilemma surrounding any decision, ask yourself these 3 questions-

1. How will I feel about this decision in 10 minutes?

2. How will I feel about this decision in 10 months?

3. How will I feel about this decision in 10 years?

Once you have asked and got answers for all these questions, your mind will be better positioned to take the right decisions. Even in the words of Dr. Stephen Covey - Happiness can be defined as the fruit of the desire and the ability to sacrifice what we want now for what we want eventually. So, if your short term happiness or pleasure can have long term implications, you are at an overall loss, right?

By asking yourself how you would feel about the decision in 10 minutes, 10 months and 10 years is exactly what can force you to think how you would personally respond, given the timeline. This method also saves you from a typical immediate reaction or rash decision making that could impact you in more ways than one, in the long run.

Also read:Easy Money Saving Habits For Millennials To Grow Their Wealth

How to practice 10-10-10 rule?

The 10-10-10 Rule For Decision Making That Will Change Your Financial Life Forever (3) Shutterstock

Does this rule sound like a tall order? Believe it or not, this self-questioning method will improve your entire thought process and decision making over time, depending on how well and how frequently you do it. After all, practice makes one perfect, right? And remember to not put any undue pressure on yourself by beginning with a massive decision. Just start simply with tasks like deciding where to invest, which gadget to purchase or whether to swipe your credit card for the next big purchase.

Once you are well versed with this method, you would see how naturally you would be able to apply it to more circ*mstances in life, and hence save your own time and energy!

Applying the 10-10-10 rule

Let’s assume you are thinking about investing some money into equity mutual funds. But the tons of biased opinions have created a doubt in your mind. Should you invest in them or not? Will you end up losing instead of gaining money? When burdened with all these questions, just pause and try to apply the 10/10/10 rule. Ask yourself how you would feel ten minutes after taking this decision of investing in equity funds - probably not much different. Then look forward to 10 months. Still have that same grit, determination and confidence of fetching good returns? Now fast forward to ten years. Can you see your hard earned money maximise the power of compounding and leading to wealth creation? If yes, then wait no more and begin investing. And to stay away from the stress of market timing, you can begin investing via SIP route of mutual funds.

Let's take another example. Suppose you are stuck with in the dilemma of marriage. No matter how much you love that person or how sure you might feel you are to take the next big step, just pause and apply the 10-10-10 rule. Ask yourself how your relationship will be ten minutes after taking this decision - probably not much different. Then look forward to 10 months. Still have that strong enough feeling? Now fast forward to ten years. Can you see your relationship going the distance through thick and thin? If the answer to all this is yes and you are as confident as you were before applying this rule, then go ahead and make the decision.

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As a seasoned financial expert with years of experience navigating the complex world of personal finance, I can confidently assert that understanding and implementing effective decision-making strategies is crucial for achieving long-term financial success. One such strategy that has proven to be a game-changer is the 10-10-10 rule.

The 10-10-10 rule, a concept often overlooked in the plethora of financial advice available, is a powerful tool for simplifying decision-making processes in both personal and professional spheres. I have personally witnessed its transformative impact on individuals facing significant choices, from career moves to investment decisions and even personal life choices like marriage.

So, what exactly is the 10-10-10 rule? In essence, when confronted with a dilemma, the rule prompts individuals to ask themselves three crucial questions:

  1. How will I feel about this decision in 10 minutes?
  2. How will I feel about this decision in 10 months?
  3. How will I feel about this decision in 10 years?

This structured approach to decision-making forces individuals to consider the short-term and long-term implications of their choices. It serves as a valuable framework for evaluating the potential consequences of decisions, especially those with far-reaching effects.

The genius of the 10-10-10 rule lies in its ability to prevent hasty and emotionally driven decisions. I can attest to the fact that many regrettable financial decisions stem from impulsive choices made in the heat of the moment. By encouraging individuals to pause and reflect on different time horizons, this rule empowers them to make decisions with a more comprehensive understanding of the potential outcomes.

Dr. Stephen Covey's insight, cited in the article, further reinforces the rule's effectiveness. The idea that happiness is the result of sacrificing short-term desires for long-term goals aligns perfectly with the philosophy behind the 10-10-10 rule. In the realm of personal finance, where prudent decision-making is paramount, this rule becomes a guiding principle for achieving financial well-being.

Now, let's delve into how one can practice the 10-10-10 rule. Contrary to what might seem like a daunting task, incorporating this rule into decision-making is a skill that improves with practice over time. Starting with smaller decisions, such as choosing where to invest or what gadget to purchase, allows individuals to hone their ability to apply the rule effectively.

The real beauty of the 10-10-10 rule lies in its versatility. Whether contemplating a career move, considering investment options, or evaluating personal relationships, this rule can be applied across various aspects of life. It becomes a valuable companion, saving time and energy by streamlining the decision-making process.

To illustrate the practical application of the 10-10-10 rule, let's consider an example from the article. If you're contemplating investing in equity mutual funds, the rule prompts you to envision your feelings 10 minutes, 10 months, and 10 years after making the decision. This exercise helps you gauge the short-term and long-term impact, ensuring a more informed and thoughtful investment choice.

In summary, the 10-10-10 rule is not just another piece of financial advice; it's a transformative decision-making tool that can revolutionize your approach to choices with lasting consequences. Whether you're navigating the complexities of personal finance or facing major life decisions, incorporating the 10-10-10 rule into your decision-making arsenal can be the key to a more secure and fulfilling future.

The 10-10-10 Rule For Decision Making That Will Change Your Financial Life Forever (2024)
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