How to Make Smarter Decisions by Designing Your Defaults
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90% of your daily decisions happen automatically, many shaped by your environment. Thus, most decisions are a habit, not a deliberate choice.
To make smarter choices, design smarter defaults. And habits can be developed by shaping the invisible defaults of your life.
Design your life like a choice architect:
“First, never underestimate the power of inertia. Second, that power can be harnessed.”
SIMILAR ARTICLES & IDEAS:
Although we usually have the freedom to make a wide range of choices at any given moment, we often make decisions based on the environment we find ourselves in:
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Deciding is too much effort so we’re likely to just stick with the default or safer option if it’s already been chosen for us.
When we get offered too many choices, the same...
This is when serotonin is at it’s natural high, which helps to calm our brain. Thus, we feel less risk averse and so we can face risks and make harder choices.
If we’re feeling hunger, thirst or sexual desire, that can actually spill over into the decision areas of our brains, making us feel more desire for big rewards when we make choices.
This can lead us to make higher-risk choices and to want for more.
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Nudging involves gently coaxing someone into a decision or behavior. The successful nudge is one that results in the desired choice or behavior without the person realizing any external influenc...
The mind seems to involve various simple systems throughout the body that are not always in agreement. Some systems are shortsighted, some care about relationships, and some prioritize the future of humanity.
We are not always aware of each mechanism. Sometimes we make decisions carefully and other times intuitively.
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While prompted to make a decision with a given set of options, a person has the freedom to refuse to actively make a choice.
The decision-making process of the person is affected by the
If a person is told about the economic incentives of their selection, they are more likely to make an active choice.
If the person is told about the pros and cons of their decision, they have a logical reason to make the desired choice, as it can minimize any potential loss.
Organizations need to understand when to provide a reward to the person making the choice to promote active choice-making, or to initiate a penalty to make them provide a concrete answer.
They are actions we make without thinking (habits, routines, compulsions). They control more than 40% of our daily actions.
So if we want to change our lives and be more productive, we...
This behavior keeps you from dedicating your time to meaningful work. Replying to email may feel productive, but the truth is emails are rarely the most important thing on your to-do list.
So instead of keeping your inbox open all day, change your default behavior to working on emails in batches.
Real-time communication sets the expectation that you’re always available. And for many of us, our default behaviors support just that.
In order to change this behavior, you need to set expectations on response time. Mute specific channels, get rid of pop-ups, turn off mobile notifications, etc.
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People tend to conform to behaviors that are common among other people, even when they know that those people did not make their choices freely, and when the decision does not mirror their own desi...
The idea of the self-categorization theory is that people conform to the norms of certain social groups whenever they have a personal desire to feel like they belong.
It is irrelevant whether a norm reflects people's preference, as long as the behavior is associated with the group.
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There are five different types of financial personalities, each of them having their own set of values and outlook towards money:
After you have figured out your financial personality, here are a few tips to save money:
"The best measure of quality thinking is your ability to accurately predict the consequences of your ideas a..."
Before jumping to a conclusion, think about the long-term consequences of your decision.
We may respect those able to fling themselves into a hard problem and make a quick choice with seemingly little thought, but making a meaningful decision needs to be done with care for the long-term effects.
It’s important to be aware of what state of mind you’re in before tackling a hard choice.
Decision fatigue happens when the mental energy required to weigh the tradeoffs of our decision becomes too much for us to handle.
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Behavioral economists show that when humans make quick decisions under pressure, it is based mostly on intuition. They are unconsciously guided by biases and psychological fallacie...
The task of a choice architect is to organize the context in which people make decisions.
Changing the context in which people make choices can make desired behaviors easier to accept.
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Is the act of selecting a target or objective you wish to achieve.
Goal setting is not only about choosing the rewards you want to enjoy, but also the costs you are willing to pay t...
Example: If you’re a writer, your goal is to write a book. Your system is the writing schedule that you follow each week.
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