Simple. There are 2 types of buyers, and they are:

1. the one who only accept the best. This kind of buyers will search for all options, compare the prices, and spend so many hours just to find a pair of shoes, for example. This kind of buyers is commonly called the maximizers.
2. the second type is satisficers, who often think that good enough is enough. They have standards, but if what they’re looking for qualifies for those standards, they buy it. Sometimes these standards take form in maximum price tag, durability, etc

The difference is that in most cases satisficers save more time when purchasing or buying something. When they found something that is great, they refuse to spend more time to find the best.

The problem with maximizers is that they often not as happy as satisficers. A research found that:

• Maximizers are more likely to regret their purchases despite the fact that they have (in theory, at least) come closer than Satisficers to making the best decision.
• On the flip side, Satisficers generally feel more positive about their purchases. They know they’ve made a choice that met their expectations.
• Maximizers enjoy positive events less than Satisficers, and they don’t cope as well with negative events.

In general, I agree that when you are faced with too many choice, there’s no choice at all. It is proven scientifically since researchers has found out that when an employer increases the number of options for retirement savings, the likelihood that employees will actually save for retirement goes down. This means that if you give a consumer a handful of options, he’s happy. He feels in control of his life. But when there are dozens of choices available, he’s all at sea.  Perfection is actually a moving target and in the end you better make a solid decision today than perfect decision next week.

In order to be happy with “good enough” stuff and decrease the stress of maximizers, there are a lot of tips that you can try. Some of them are:

1. Don’t sweat unimportant decisions. Did it really matter which hair gel I selected? Of course not. I should have just picked one in the first ten seconds and called it good enough.
2. Limit your options. If you’re faced with overwhelming choices, arbitrarily reduce the field. When shopping for a new bicycle, for example, restrict yourself to a certain store or a certain brand.
3. Learn to accept “good enough”. If you’re a Maximizer like me, it can be tough to make the leap to the land of Satisficing. But remember: The perfect is the enemy of the good. You’ll be happier if you accept a good option and stop looking for perfection.
4. Stick with what you know. Schwartz argues that unless you’re dissatisfied with a product, you should stick with what you always buy. Don’t be tempted by “new and improved” options. Habits make people happy. (My research shows that this last fact is true in many ways.)
5. Don’t second guess yourself. Once you’ve made a decision, stick with it. Buyer’s remorse can nag at your heart. Ignore it. Be decisive.
6. Embrace restraints. Schwartz argues that it’s possible to learn to love limitations. Limits give us boundaries. They eliminate uncertainty. When we know our boundaries, we can focus on thriving within them.

Remember the golden rule: some choice is good, too much is not.

It is time for another family finance guides, guys If there’s a new family member in your house, you can bet that in his/her three year’s anniversary your beloved son/daughter will gather quite a few dollar bills from other family members or relatives for events like anniversary or Christmas.

Some of us chose to allow our kids to spend the money immediately for some low-cost toys/food such as hot wheels or something. It’s a simple lesson we teach to our son that money is something that can be exchange for goods and services.

Although I do agree with that statement, I prefer to teach my son/daughter on how to save some of them. Why? Because he once asked for a more expensive toy and if he keeps spending the money the way he is now, he won’t be able to buy the toy with his own money…

Here’s an easy example: You take your son (with 2 dollars with him) to the store, and instead of wanting a 2 dollar toy, he prefer the $7.99 toy.

So here’s how I will deal with it:

I will tell him: “the toy costs eight dollars. You only have two dollars. You don’t have enough dollars to buy that toy.” We will work through the counting using our fingers so that he understood that he needed six more dollars.

That won’t shake his interest in the toy, however. I bet that he still wants it.

Then explain to your child that if he/she doesn’t spend the dollars he has today, we can take them home and then we wait for another 6 dollars and then we buy the toy. It will take some more explanations, but do not give up yet

In your home, prepare a jar lid to store your beloved son/daughter’s money. Transparent jar lid would be better Hopefully, your son has been able to add some money to the jar – he can clearly see his savings as it builds up. He knows what it’s for and he’s excited to contribute to it whenever he can.

To put it simply, saving money has now become relevant and exciting for him. It’s very tangible – he can see his savings grow. He also has a goal that’s small enough that it seems reachable – he only needs to save up to $8, after all.

So what’s next? The near future points us to our child’s next lesson: how do you earn money? That will be a whole new adventure.

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So that’s the main question I have for you guys…. Do you want to be rich? Most of us might answer “Well, Yes of course!” But we should be aware, since there’s more behind this and the answer is not as simple as that

Take a look at Bill Gates. He is darn rich. But he can’t go to grocery store with his wife and kids and do things he might enjoy in life because he’s so busy or because security reasons. Moreover, it must be kind of hard to find people who sincerely want to build sincere relationship with him, since (in my opinion) there must be people who want something from him. Even though he can help many people with his fortune, I just don’t think that I want that kind of fortune.

So bottom line question remains; do you want to be rich? I don’t know about you guys, but instead of rich, I prefer financial independence. I dream of simply being able to live my life as I live it now without having to worry about future income. I don’t even desire to spend much more than we spend right now – the only thing I might add is the ability to travel a bit with my family as my children get older. I’d also like to be able to devote myself more and more to volunteerism and other causes.

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