My wife and I are having our house painted, which, by the way, is not a fun way to spend money – welcome to adulthood and responsibility. We don’t plan on moving any time in the next few years so we’ve decided to take care of our investment, as well as make sure it’s somewhere that we can live happily for a while longer. That, coupled with the nation’s financial crisis, have me thinking a bit more on financial management lately.

Where are we now? How did we get here? Where are we going?

Honestly, I think Tracy and I have done a great job at making good decisions when we’ve had big decisions to make. Where to live, what jobs to take, what cars to by, when to go on vacations, and how to spend our money in general. A lot goes into these decisions, but there is one thing in particular that has really helped us make the biggest decisions, and I will share that with you.

Make a list.

Seriously, when making a big decision, make a list – three lists really. Take a piece of paper and right these three column headings spaced out across the top: Must Have, Want to Have, and Would Like.  You can call them whatever you want, but here’s the concept.

I’ll use buying a car as an example. The “Must Haves” are things that are non-negotiable, things like automatic transmission, 4 doors, and regular fuel. The “Want to Have” may be things like power locks and windows, bucket seats, or keyless entry. The “Would Like” items will probably be things such as a sun roof, navigation system, and heated seats.

You need to have these things written down and with you when going to buy that car, and you need to make sure the majority of your “Must Haves” are included. Otherwise, when the salesman tries to give you a great deal on 2 door stick shift with a sunroof, navigation system, and heated seats, you may be overwhelmed with emotional excitement and drive it off the lot. Then, about half way home, you’re stomach will drop because you’ll realize that your wife is going to ask you how you plan to get the two car seats in the back of your little coup.