Financial Decisions
💵 Make smarter money decisions with structured analysis.
The Cost of Wrong Financial Decisions: Financial mistakes compound quickly—wrong purchases, poor debt management, missed investment opportunities. Structured reasoning protocols catch errors before they become costly mistakes, preventing financial loss and missed opportunities.
Financial decisions—from budgeting to major purchases—benefit from structured thinking that cuts through emotion and marketing.
Common Financial Questions
“Should I buy this?”
rk think "I want to buy a $800 smartphone. My current phone works fine but is 3 years old. Good idea?" --balanced
“Can I afford this?”
rk think "Thinking of buying a $35K car. Income is $75K. Is this financially responsible?" --deep
“Should I pay off debt or invest?”
rk think "I have $10K saved. Should I pay off my 6% car loan or invest in index funds?" --balanced
“Is this subscription worth it?”
rk think "I'm paying $200/month in subscriptions. Which ones should I cut?" --quick
Example Analysis
Question: “Should I finance a new car or buy a used one with cash?”
rk think "I have $15K cash. Should I buy a used car outright or finance a new car at 5% APR?" --balanced
╔════════════════════════════════════════════════════════════╗
║ FINANCIAL ANALYSIS: New vs Used Car ║
╚════════════════════════════════════════════════════════════╝
┌────────────────────────────────────────────────────────────┐
│ 💡 GIGATHINK: 10 Perspectives │
├────────────────────────────────────────────────────────────┤
│ 1. DEPRECIATION: New cars lose 20-30% in year one │
│ 2. FINANCING COST: 5% APR on $30K = $4K+ in interest │
│ 3. OPPORTUNITY COST: $15K invested at 7% = $1K/year │
│ 4. RELIABILITY: New car has warranty, used may not │
│ 5. INSURANCE: New cars cost more to insure │
│ 6. MAINTENANCE: Used cars may need more repairs │
│ 7. CASH FLOW: Monthly payment vs. one-time expense │
│ 8. EMERGENCY: Keeping cash = financial flexibility │
│ 9. PSYCHOLOGY: "New car smell" satisfaction factor │
│ 10. TOTAL COST: Calculate 5-year total cost of ownership │
└────────────────────────────────────────────────────────────┘
┌────────────────────────────────────────────────────────────┐
│ ⚡ LASERLOGIC: Hidden Assumptions │
├────────────────────────────────────────────────────────────┤
│ FLAW: "New cars are more reliable" │
│ → Modern used cars (2-3 years old) are very reliable │
│ → Reliability varies by brand more than age │
│ │
│ FLAW: "I can afford the payment" │
│ → Affordability ≠ wisdom │
│ → Monthly payment hides total cost │
└────────────────────────────────────────────────────────────┘
┌────────────────────────────────────────────────────────────┐
│ 🪨 BEDROCK: First Principles │
├────────────────────────────────────────────────────────────┤
│ CORE QUESTION: │
│ A car is transportation from A to B. │
│ How much are you paying for that function? │
│ │
│ THE MATH: │
│ • Used $15K car, 5 years = $3K/year + maintenance │
│ • New $30K car financed = $6K/year + interest │
│ • Difference: $3K+/year = $15K+ over 5 years │
└────────────────────────────────────────────────────────────┘
┌────────────────────────────────────────────────────────────┐
│ 🛡️ PROOFGUARD: Verification │
├────────────────────────────────────────────────────────────┤
│ VERIFIED: Average new car loses 20% value in year one │
│ VERIFIED: Average used car repair costs $500-1500/year │
│ VERIFIED: S&P 500 average return ~7% after inflation │
│ TO VERIFY: Specific used car reliability ratings │
└────────────────────────────────────────────────────────────┘
┌────────────────────────────────────────────────────────────┐
│ 🔥 BRUTALHONESTY: Reality Check │
├────────────────────────────────────────────────────────────┤
│ UNCOMFORTABLE TRUTH: │
│ You probably want the new car because it's nicer, │
│ not because it makes financial sense. │
│ │
│ The $15K difference could be: │
│ • 6+ months of emergency fund │
│ • Start of retirement savings │
│ • Down payment on a house │
│ │
│ HONEST QUESTION: │
│ In 3 years, will you be happier with the nice car │
│ or the extra $15K in savings? │
└────────────────────────────────────────────────────────────┘
SYNTHESIS:
Buy the used car with cash unless you have a specific reason
the new car's features are worth $15K+ to you. The math strongly
favors used—you avoid depreciation, interest, and preserve cash
for emergencies or investing.
Financial-Specific Profile
[profiles.financial]
tools = ["gigathink", "laserlogic", "bedrock", "proofguard", "brutalhonesty"]
gigathink_perspectives = 10
laserlogic_depth = "standard"
proofguard_sources = 3
brutalhonesty_severity = "high"
timeout = 180
Financial Decision Types
| Decision Type | Profile | Key Tools |
|---|---|---|
| Daily purchases | --quick | GigaThink, LaserLogic |
| Major purchases ($500+) | --balanced | All 5 |
| Debt decisions | --balanced | BedRock, LaserLogic |
| Investment decisions | --paranoid | See Investments |
Common Financial Biases
ReasonKit helps you catch:
| Bias | Example | How ReasonKit Helps |
|---|---|---|
| Anchoring | “$1000 off!” (from inflated price) | BedRock: What’s the actual value? |
| Mental accounting | “It’s bonus money, I can spend it” | LaserLogic: Money is fungible |
| Lifestyle inflation | Spending more as income rises | BrutalHonesty: Do you need this? |
| Sunk cost | “I already spent $X on this” | LaserLogic: Past spending is irrelevant |
| Present bias | Preferring now over future | GigaThink: Future self perspective |
Tips for Financial Analysis
- Include all costs — Purchase price, maintenance, opportunity cost, time
- Use real numbers — Not “about $X” but exact figures
- Consider time horizon — 1 year vs. 5 years vs. lifetime
- Question “normal” — Just because others do it doesn’t make it smart
- Run the comparison — Always compare to alternatives
Related
- Investment Decisions — For investment-specific analysis
- Business Decisions — For business financials
- Balanced Profile — Standard financial analysis