How to make consistently better decisions in life.
Decision making is a crucial aspect of our daily lives. It can shape the direction of our career, relationships, and personal life. Unfortunately, we don’t always think or know about making the best decisions, leading to missed opportunities and regrets. So how can we learn to make better decisions consistently?
First lets explore how we make decisions:
We often make decisions based on our emotions, experiences, and biases. This is known as intuitive decision making, and while it can be fast and effective in certain situations, it can also lead to errors.
On the other hand, rational decision making involves weighing options and considering consequences beyond the obvious, which leads to more quality decisions. But this can be time-consuming and mentally exhausting if we’re applying this method for every little decision that we have to make. Therefore a balanced approach, incorporating both intuition and rationality, can lead to an overall better decision making process.
One of the best mental models to deploy while learning how to make better decisions is to understand Poor Decision Making and avoid them. Some of the examples of poor decision making include falling prey to our biases such as :
- Confirmation bias: Only seeking information that supports our beliefs or decisions therefore blinding us to alternative perspectives with better solutions.
- Overconfidence: Similar to Confirmation bias. Believing we know more than we do and not considering alternative options is a sure shot way to make sub optimal decisions.
- Short-term thinking: Prioritizing immediate gratification over long-term goals. Not utilizing the principle of second order thinking will have us making decisions with negative long term outcomes.
- Fear of missing out (FOMO): Making decisions based on the fear of missing out on opportunities instead of making decisions based on pure merit.
Avoiding these pitfalls requires self-awareness and a willingness to question our own assumptions and motivations. Having a patchwork of mental models to help you navigate these and other shortcomings goes a long way in helping us make better decisions. There are a ton of tools available to anyone willing to learn for making better decisions in life consistently.
Mental models and frameworks can be powerful tools for improving our decision making skills. They provide a structured approach to thinking, help us challenge our assumptions, and identify blind spots. Here are some ways we can use mental models and frameworks to improve our decision making:
1. Use Mental Models: Mental models are simplified representations of complex systems that help us understand the world and make decisions. Some popular mental models include the 80/20 rule, the first principles, the law of inversion and second order thinking. Using mental models can help us identify patterns and simplify complex problems, making it easier to make informed decisions.
2. Adopt a Systems Thinking Approach: Systems thinking is a way of understanding how different parts of a system interact and influence each other. By considering the big picture and interconnections, we can make better decisions that consider the long-term consequences.
3. Use Decision Making Frameworks: Frameworks like the Eisenhower Matrix and the Decision-Making Tree provide a systematic approach to decision making. They help us prioritize tasks and make choices based on objective criteria, reducing the influence of emotions and biases.
4. Practice Proactive Planning: Proactive planning involves anticipating potential problems and developing strategies to mitigate them. By planning ahead, we can make better decisions that are more resilient and adaptive to change.
5. Seek Different Perspectives: It’s easy to get trapped in our own biases and assumptions. Seeking different perspectives, whether it be from friends, family, or experts, can help us broaden our understanding and make more informed decisions.
By incorporating these into our decision making process, we can reduce the influence of emotions and biases, and make choices that are more informed, thoughtful, and impactful.
Some of the best books on Decision Making are as follows :
- “Thinking, Fast and Slow” by Daniel Kahneman
- “The Art of Thinking Clearly” by Rolf Dobelli
- “Decisive: How to Make Better Choices in Life and Work” by Chip Heath and Dan Heath
- “The Power of Intentional Leadership: Succeeding with Purpose, Authenticity, and Impact” by John C. Maxwell
- “Poor Charlies Almanack” by Charlie Munger.
These books cover most of the ways we fool ourselves but add a layer of applied multidisciplinary education. In conclusion, making better decisions requires a combination of self-awareness, rational thinking, and the use of tools and resources. By avoiding common pitfalls and continuously learning from our choices, we can improve and grow in all areas of our lives.
