Let’s talk about the implications of researching decisions (Thread)
If I quickly make a decision, it feels unimportant. I go with my gut. I’m typically happy.
Occasionally, I decide to research a decision. More research leads to better outcomes, right?
Not necessarily...
If I heavily research a decision, the decision feels more important. I want to justify my research time. So, I search for every tradeoff. I optimize for perfection. But, because my expectations are now so high, I’m more likely to be disappointed! 🤦♂️
So, here’s the trap: The more I research a decision, the more important the decision seems. This leads to problems:
1. Overspending due to over-valuing minor differences and fear of missing out.
2. Dissatisfaction due to heightened expectations
Example: Buying a camera.
More research leads to:
- Knowledge of tradeoffs
- Knowledge of optional features, and thus, FOMO (fear of missing out).
- Thinking “wow, the camera I buy is super important. Why else would I be researching this so much?”
Result? Overspending.
The trap: The more time I spend researching a decision, the more important it seems. Focusing on a decision doesn’t mean it’s important. The differences, benefits, and options aren’t necessarily relevant, or worth the money. And the time I spend researching isn’t “free” either.
Takeaway: For most decisions, go with your gut.
For big, hard-to-reverse decisions, research strategically.
Ask:
What problem am I trying to solve?
Am I assuming the differences matter just because I spent so much time finding them?
Do the differences actually matter to me?
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Just finished "Unscripted: Life, Liberty, and the Pursuit of Entrepreneurship".
If you aspire to own your own business and retire early, this book sets the foundation for an entrepreneurial mindset.👍
Summary: You have to break the "script" that society has encoded into you...
This book may offend. It describes "model" citizens in a derogatory manner:
Mediocre
Obedient
Dependent
Entertained
Lifeless
It contains quotes like this:
"Herds are manufactured for a purpose. Slaughter and manufacturing."
And this:
"The rats race needs rats".
And this:
"If I except average advice from average people living average lives, how can I expect to be anything but average? Conventional wisdom creates a conventional script which produces conventional results."
"The ability to change your mind is a superpower." - @farnamstreet
Open-minded indicators:
-Have you carefully considered content that disagrees with your current view?
-Do you ask questions with a desire to understand?
-Are you more interested finding truth than being right?
Other indicators:
- When speaking to someone with whom you disagree, are you focused on understanding their view, or merely defending your stance?
- If someone suggested content that disagreed with your current view, would you be willing to consume and consider it?
Related quote:
“If all of your beliefs line up into one political party, you’re not a clear thinker. If all your beliefs are the same as your neighbors and your friends, you’re not a clear thinker – your beliefs are socialized. They’re taken from other people." - @naval
Just finished “The Simple Path to Wealth”. Superb.
1. Live WAY below your means 2. Invest savings in low cost index funds (VTSAX) 3. When your investments total to 25x your annual expenses, you’re financially independent. You’re free to live life on your terms. 🏝
Example: If you can live off $30k/year, you’re financially independent when you have 750k invested in low cost stock index funds.
The goal isn’t necessarily “early retirement”. The goal is freedom.
Financial independence = freedom to work on what you care about, when you want.