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Identifying and eliminating unnecessary expenses
How to negotiate better deals
Understanding the importance of saving
When we don't understand the details, it can cause much trouble. If a nation is overconfident that they will win a war, they will fight more wars. An investor that is to sure of their estimate of an asset's value will trade too much.
The world is too big to process and understand everything. We have to oversimplify the world to be able to function in it. The difficulty is that we don't think our models of how the world works are oversimplified. We believe they are correct. This creates a hidden risk.
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Most people think they know more than they really do.
Researchers showed that people believe they understand familiar manufactured objects much better than they really do. For instance, if you think you understand how a can opener works, try to draw a diagram of a can ...
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Focusing on specific details in a complex system while ignoring the amount of detail contained within the system may at first show a benefit. However, it can create a massive collapse in the long-run.
In the late 18th century, the German government wanted to grow "scientific forests" t...
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We normally don't notice ourselves wanting far too much when it comes to admiration, money, acclaim. It happens - as it tend to with sins - slowly and inperceptibly. Because when we are proud, we stop noticing how we humiliate others. Then there's no wonder why we build u...
Most people are afraid of breathing, unable to exhale after they inhale, due to the uncertainty and insecurity of life. They are afraid to live, to let go and are not sure that the next breath will come, so they do what is logical: Hold their own breath.
Our fundamental misunderstanding is...
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