I’ve always been fascinated by ways I can improve my Decision Making.
Annie Duke‘s Thinking in Bets is just the book for that.
Key Takeaways:
1. Outcome and decision shouldn’t be coalesced: When you ask people about their good decisions, most people will come up with examples where they had good outcome. Bad outcome doesn’t necessarily mean, you made a bad decision, and vice versa
2. Temporal Discounting: People tend to forget impact of their actions in future for instant gratification. For example, if you’re binge watching a show at night, most people don’t realize they will impact quality of their morning meetings. Similarly, spending all discretionary income now will have potentially drastic impact on retirement.
More than the concept, it is the very idea of reminding yourself the impact of your decisions on the future, can deter you from making a bad decision.
3. 10-10-10 Rule: Think of impact of your decision 10 days, 10 months, and 10 years from now. This will help you put things in perspective. If you’re frustrated because of a flat tyre. Think about its impact on your happiness 10 days from now?
This technique discourages us from magnifying the present moment, blowing it out of proportion and overreacting to it.
Rating: 4/5
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