The dua for seeking guidance in forming a decision is the perfect way of asking for the counsel of Allah (سُبْحَانَهُ وَتَعَالَى) while conflicted over a decision. To have Allah (سُبْحَانَهُ وَتَعَالَى) on your side is by far the biggest benefit that one could desire for oneself, and this dua is one of the easiest yet effective ways to do that. By reciting this dua, the intention is that Allah will guide you towards the decision that is better for you.
The dua for seeking guidance in forming a decision or the dua e Istikhara. This dua is a practical manifestation of a believer yielding to the authority and magnificence of Allah (سُبْحَانَهُ وَتَعَالَى) and acknowledging His limitless knowledge. The Prophet Muhammad (ﷺ) used to teach this dua to his companions while educating them about the proper method of performing Istikhara. Jabir bin `Abdullah (رَضِيَ ٱللَّٰهُ عَنْهُ) narrated this dua and the instance of the Prophet Muhammad (ﷺ) teaching the method of Istikhara in ( Sahih al-Bukhari 1166). The same has been reported in ( Sunan an-Nasa'i 3253)
Praising Allah Duas
Allaahumma 'innee 'astakheeruka bi'ilmika, wa 'astaqdiruka biqudratika, wa 'as'aluka min fadhtikal-'Adheemi, fa'innaka taqdiru wa laa 'aqdiru, wa ta'lamu, wa laa 'a'lamu, wa 'Anta 'Allaamul-Ghuyoobi, Allaahumma 'in kunta ta'lamu 'anna haathal-'amra-(then mention the thing to be decided) Khayrun lee fee deenee wa ma'aashee wa 'aaqibati 'amree, faqdurhu lee wa yassirhu lee thumma baarik lee feehi, wa 'in kunta ta'lamu 'anna haathal-'amra sharrun lee fee deenee wa ma'aashee wa 'aaqibati 'amree, fasrifhu 'annee wasrifnee 'anhu waqdur liyal-khayra haythu kaana thumma 'ardhinee bihi.
O Allah, I seek the counsel of Your Knowledge, and I seek the help of Your Omnipotence, and I beseech You for Your Magnificent Grace. Surely, You are Capable and I am not. You know and I know not, and You are the Knower of the unseen. O Allah, if You know that this matter (mention the matter) is good for me in my religion and in my life and for my welfare in the life to come in both the short term and the long term, then ordain it for me and make it easy for me, then bless me in it. And if You know that this matter is bad for me in my religion and in my life and for my welfare in the life to come in both the short term and the long term, then distance it from me, and distance me from it, and ordain for me what is good wherever it may be, and help me to be content with it.
A Believer's cry for need in front of His Lord requires honesty. One should have pure intentions and a firm belief that Allah will guide them towards the correct decision. Moreover, one should accept the decision after performing the istikhara; one should not make the decision that was not chosen by Allah.
The best way to make the dua is by reciting the dua after praying two raka'ahs of non-obligatory prayer as taught by the Prophet Muhammad (ﷺ) in the above-mentioned hadith. After reciting the salah, one should recite the istikhara dua and state your need or purpose for istikhara clearly. Allah will guide you toward the right decision; your heart will automatically be more inclined towards one option than the other.
The benefits of the dua are in emphasizing the basic belief of Tawheed. A believer, through the recitation of this dua, hands over his case to Allah (سُبْحَانَهُ وَتَعَالَى). The believer seeks the guidance of the Almighty through the virtues of omnipotence, knowledge, power, and bounty of Allah (سُبْحَانَهُ وَتَعَالَى). This carries excellent rewards within itself as performing the Dhikr of Allah (سُبْحَانَهُ وَتَعَالَى). Among the other benefits of this dua is a believer expressing his contentment in the will of Allah (سُبْحَانَهُ وَتَعَالَى) and one's fate. The person also acknowledges the limitless love that the Almighty has for His servants and thus gains peace of heart and mind in knowing that His Lord will choose whatever's best for him and that he will be rewarded in the best way possible.