How to make better decisions

Step 1: Admit you have a problem.

You are irrational.

So to be honest, I wasn’t ready for this step initially. I was living comfortably in the land of denial.

So if you are like me, your first step is actually to enjoy learning about how other people act irrationally.

Laugh at the absurdity. Along the way, you may just discover the many (many) ways you are also systematically getting it wrong.

So what does a rational decision maker look like? And how can you make badass decisions? While mastering the application of these skills is a lifelong journey, the goal is simple.

Be consistent. Avoid bias.

So what does that mean? Well, here is what it means to me:

Be consistent

Don’t let unrelated information change your answer. It is only human to be influenced by superficial, unrelated, irrelevant information. Strive to be super-human by avoiding these traps.

Avoid bias

Your judgment should not be systematically biased. Don’t make the same mistake over and over again. At least, not unknowingly. If my love for everything bagels with an overload of cream cheese is wrong… I don’t want to be right.

I went into business school focusing on Finance and Statistics, I graduated with an obsession for Behavioral Economics and decision making. My posts will be a series of notes and realizations I have made as I have strived to be a better decision maker.

Because, after all, your life is shaped by the thousands of decisions you make. Why not make the most of it?

When someone makes a decision, he is really diving into a strong current that will carry him to places he had never dreamed of when he first made the decision.

— Paulo Coelho, The Alchemist

Along the way, if you feel down about the less than optimal choices you’ve made, rest assured. Find comfort in knowing that everyone else is getting it wrong too. And celebrate that you soon won’t fall into the same trap…. or at least not as often.