How to make better decisions.

in #psychology8 years ago

“Nothing in life is as important as you think it is, while you are thinking about it”
― Daniel Kahneman, Thinking, Fast and Slow

Humans are evolutionary creatures taking millions of years to evolve thinking and habits. Our brains are designed to make sense of the complexity around us. Our brains try to reduce the mental load of thinking by using shortcuts to make decisions. E.g. fear induces flight or fight mode.

We are now living in an age of immense complexity, which is making our ability to think effectively difficult. Our evolutionary biology has been slow to adapt to the demands of fast advancing civilization. We can think effectively and make good decisions if we are aware of the shortcomings of our thinking.

Dilbert comic humor on cognitive bias:

THINKING EFFECTIVELY :
Noble prizewinner ​and Behavioral psychologist, Daniel kahneman in his book Thinking fast and slow classifies thinking into two modes:

System 1: “It is the brain’s fast, automatic, intuitive approach”
System 2: “the minds slower, analytical mode, where reason dominates.”

Kahneman says System1 is more influential and guiding System 2 to a very large extent. He emphasizes the need to avoid overconfidence which hampers our ability to make rational decisions.

We can make better decisions by being aware of cognitive biases.
This image provides a list of biases that we need to be aware to help us think effectively.

Books useful in helping to educate yourself​ on thinking effectively :
Thinking fast and slow by Daniel Kahneman.
Influence by Robert Cialdini.
Nudge by Richard Thaler.
Think twice by Michael Mauboussin.
Misbehaving by Richard Thaler.