Essay Sample on How to Solve a Financial Problem

Posted on December 5, 2008

Problem solving forms part of thinking. Well thought-out the most difficult of all rational functions, problem solving has been distinct as advanced classify cognitive development that requires the accent and control of more routine or fundamental skills. It occurs if an organism or an artificial intelligence system does not know how to proceed from a given state to a desired goal state. Its part of the larger problem process that includes problem finding and problem solving. (Engel, 68)

Complex problems have some classic distinctiveness such as lack of precision of the situation where by one does not understand the problem. Some problems require numerous goals to be dealt with, thus become difficult to handle. Some are so complex that they are in large number of items, interrelations and require a lot of conclusion. (ibid, 78)

For example when am faced with a financial problem, I always resolve the limitation by first identifying the nature of the problem.

Despite the fact that I cannot solve a problem without knowing exactly what the problem is, many people try to do just that. When asked about their financial situation, most will say, the problem is I need more money. They jump immediately to attempting to solve a problem they have not yet clearly defined. In order to gain clarity about my overall situation, I gather all the facts and figures I need to answer the following questions: What is my net worth? What is my current income? What are my expenses? Exactly how much do I owe? What is my credit rating? What interest rates am I paying on loan balances? When are my payments due? Are my expenses higher than my income? How much money do I need? By when do I need it? Answering these questions may be the last thing I want to do, however most of the time I experience a sense of relief when I finish. I might even find things are not as bad as I imagined. (Frensch and Funke, 112)

The second step is to come up with all solutions. I immediately engrave down all that comes to mind. I do not critic or critique my ideas because that could suspend my inspired flow. I therefore use my intelligence by letting it reach for new potential. (ibid, 121)

The third step is selecting a resolution. Afterwards I go over my catalog and cross things off that do not appear realistic. I choose the solution that makes the most sense for the moment. With money problem solving, I may decide to act on more than one solution as long as the options I choose do not take me in different directions. (Frensch and Funke, 126)

The fourth step is receiving achievement. In this point of the progression, I will have the energy curving in my support. I there fore follow through on the resolution or solutions I chose. If I find my self besieged with all the action items, I go back over my list and prioritize. In regular problem solving I would focus on one solution because scattering my efforts by trying to follow through on too many ideas at once can hamper my effectiveness. (ibid, 130)

The fifth step is evaluation. If the problem is solved, I celebrate my success if it did. I use this experience to strengthen my commitment to utilizing my problem solving skills in other areas of my life. (Frensch and Funke, 132)

If my solution or solutions did not work, I might not have correctly identified the problem. Identifying the problem is the most important step. Most people will want to go back to brainstorming more solutions, which will unavoidably lead to more frustration. Instead, I go back to step one, and focus on identifying the problem. (ibid, 133)

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