Throughout my personal and professional life, I have had to make a great many decisions both large and small. And when I look back, I realize there was always the need to analyze both the costs and values of the results of the final decision as best I could.

One thing I quickly came to understand was too many people had difficulty seeing beyond the financial costs of potential decisions. In my analysis, I found there were many costs and values that are emotional and moral and have effects we sometimes don’t immediately think about. Following are some of the things I have tried to consider in personal decisions.

1. Why am I considering this decision?
   
2. What are the out-of-pocket costs?
   
3. How will that affect my financial position?
   
4. Is this the right time to make the investment?
   
5. If in a relationship, are we both in agreement? If not, will this affect the relationship?
   
6. Does this decision affect the environment and other social issues?
   
7. How will this decision affect my lifestyle?
   
8. Is anyone else affected by this decision?
   
9. Will what I/we decide work with my/our long-term plans and goals?
   
10. Does what I am contemplating fit my value system?
    
11. What are the longer-term affects of this decision?
    
12. Will this make my/our life better?
    
13. Do I have to convince others that this is the right decision?
    
14. When making business-investment decisions it is equally important to consider the value that results. Is that new device or material more productive, more accurate, a better use of space? Does it produce a better product? Or is it a better choice socially regardless of the cost?
    

Unfortunately even after answering all these questions, and probably more, the outcome may not be certain or fully recognized right away, but it is important to give it our best shot to try to do the correct thing.

One important decision I made when my children were little was to have an in-ground swimming pool installed at the home I had just built. It most likely was not the smartest decision financially at the time, but my kids and the neighborhood kids really enjoyed the pool during their growing years and still talk about the fun they had. I chose value over cost, and I think that was correct.

Anyway that is my take on cost versus value in decision making.

Ken Kaiyala