The Villains (of Decision Making)

10/10/10 rule

How can I save money? My expense remains the same..so is there a choice?

Well, it turns out from an experiment that when one’s salary is divided into 10 envelopes instead of 1, individuals tend to save more!

Spending each envelope is an individual decision, making them think twice before making a big purchase.

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Talking about decision making, here are some stats for you 👇

• 44% of lawyers would not recommend the profession to someone else.

• More than half of teachers quit their jobs within four years.

• 83% of corporate mergers fail to create any value for shareholders.

Why are we (the human race) so bad at decision making? How can we improve?

Turns out that a lot of bad decisions are a result of our biases and narrow framing of our options.

It’s February month and we switch the theme to the art and science of decision making, a topic most of us often struggle with.

But before that, as mentioned earlier, our subscribers from India are having a tough time paying due to regulatory issues - so have enabled an alternative payment method from Razorpay.

“Success emerges from the quality of the decisions we make and the quantity of luck we receive.
We can't control luck.
But we can control the way we make choices.”

And making right decisions is a function of learnings over the past wrong decisions.

“Any time in life you’re tempted to think, ‘Should I do this OR that?’ instead, ask yourself, ‘Is there a way I can do this AND that?”

Instead of asking, “Should I buy this or not”, ask “What’s the best use of my money” or “how else could I spend this money?”

Instead of “should I break up with him or not”, ask “What step(s) should I take for our relationship?”

Sharing atomic ideas from the book Decisive by Heath brothers.

The Four Villains of Decision Making

The four villains of decision making:

• Narrow framing. This makes you miss options When we face a choice, we tend to look at our options narrowly, and often in binary terms, e.g. “Should I buy a new house or not?” or “Should I quit or stay in my job?”. This limits the options that we consider.