The Decision Making Guide: How to Make Smart Decisions and Avoid Bad Ones

Sometimes we make logical decisions, but there are many times when we make emotional, irrational, and confusing choices. This brief guide covers why we make poor decisions and discusses useful frameworks to expand your decision-making toolbox.

Why We Make Poor Decisions:
I like to think of myself as a rational person, but I’m not one. The good news is it’s not just me — or you. We are all irrational. For a long time, researchers and economists believed that humans made logical, well-considered decisions. In recent decades, however, researchers have uncovered a wide range of mental errors that derail our thinking.

How to Use Mental Models for Smart Decision Making
The smartest way to improve your decision making skills is to learn mental models. A mental model is a framework or theory that helps to explain why the world works the way it does. Each mental model is a concept that helps us make sense of the world and offers a way of looking at the problems of life.

You can learn more about mental models, read how Nobel Prize-winning physicist Richard Feynman uses mental models, or browse a few of the most important mental models below.

Top Mental Models to Improve Your Decision Making
• Margin of Safety: Always Leave Room for the Unexpected
• How to Solve Difficult Problems by Using the Inversion Technique
• Elon Musk and Bill Thurston on the Power of Thinking for Yourself