Learn how to make decisions effectively.
Making proper decisions is not easy. We often make a decision in a rush, without giving a second thought about it. That’s the best way to make bad decisions. In order to make better decisions, follow the steps above.
Recognize that the biggest threat to good decision-making is harmful emotions, and decision-making is a two-step process (first learning and then deciding).
Many people find it emotionally difficult to first learn properly, and instead, they rush to make decisions. Always remember to learn about the second- and third-order consequences, and do not make decisions based only on the first-order consequence. Before making every decision, ask yourself, Am I learning?
Make decisions based on logic, reason, and common sense.
Be aware of working on autopilot and allowing your subconscious mind to make decisions for you.
Make your decisions as expected value calculations.
Calculate how much it will cost you to be wrong and how much you will gain if you’re right. Very often, being wrong will cost you a lot, and it’s good to ask other people in order to make better decisions.
No matter what your probability of being right already is, raise the probability of being right.
Even raising the probability of being right by 20 percent will make your decision much better.
“Any damn fool can make it complex. It takes a genius to make it simple.” —Pablo Picasso
Have a set of principles that you will follow. This will massively reduce the number of decisions you have to make because you will not repeat yourself. You will follow your principles instead