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How to Make Important Decisions - Mastering the Psychology of Choice

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We've automated trivial decisions. Now, how do we make truly important decisions? Job changes, marriage, investments, career transitions... Let's learn how to make decisions that can change your life.

First, read: What is the Paradox of Choice?

Two Approaches to Good Decisions​

Maximizer vs Satisficer​

Psychologist Barry Schwartz's Distinction

Maximizer (Maximum Seeker)​

Characteristics

  • "I must make the best choice"
  • Thoroughly compare all options
  • Pursue perfection
  • Continue worrying even after deciding

Advantages

  • Objectively better choice (sometimes)
  • Thorough analysis

Disadvantages

  • Takes a long time to decide
  • High stress
  • Low satisfaction (always "maybe something better")
  • Severe decision fatigue

Example

  • When buying a laptop, compare all models (dozens)
  • Check specs, price, reviews
  • Agonize for 3 weeks before purchasing
  • Regret after purchase: "Maybe I should have bought something else"

Satisficer (Satisfaction Seeker)​

Characteristics

  • "Good enough is fine"
  • Choose when criteria are met
  • Abandon pursuit of perfection
  • Satisfied after decision

Advantages

  • Quick decisions
  • Less stress
  • High satisfaction
  • Happiness

Disadvantages

  • May not be objectively the best (but good enough)

Example

  • When buying a laptop, set criteria (budget, essential specs)
  • Choose the first 3 that meet criteria
  • Purchase in 3 days
  • Use with satisfaction

Research Results​

Happiness Survey

  • Satisficers are 40% happier than Maximizers
  • Lower depression rates
  • Higher life satisfaction

Paradox

  • Pursuing the best → Unhappiness
  • Pursuing sufficiency → Happiness

10 Ways to Make Good Decisions​

1. Set Criteria First​

Clearly Define Criteria Before Deciding

Bad Approach

  • Look at options first
  • "This is good, that is good too..."
  • Confusion

Good Approach

  • Define criteria first
  • Evaluate options against criteria
  • Clear judgment

Example: Job Change Decision

Criteria Setting

Essential Conditions (Deal breakers):
☑ Salary 20% higher than current
☑ Commute within 1 hour
☑ Company with growth potential

Preferred Conditions (Nice to have):
- Flexible work
- Good team culture
- Benefits

Evaluation

  • Company A: Meets all 3 essentials → Consider
  • Company B: Meets only 2 essentials → Eliminated
  • Company C: Meets all 3 essentials → Consider
  • → Choose between A and C (compare only 2)

### 2. 10-10-10 Rule

**Evaluate Across Three Time Frames**

**Questions**
1. How will I feel in 10 minutes?
2. How will I feel in 10 months?
3. How will I feel in 10 years?

**Example: Quitting Job**
- 10 minutes later: Afraid and anxious
- 10 months later: Excited about new opportunity
- 10 years later: "Glad I took the challenge"
- → Decision: Challenge!

**Example: Impulse Purchase**
- 10 minutes later: Good mood
- 10 months later: Regret, unused
- 10 years later: Not even remembered
- → Decision: Don't buy

### 3. Minimum Regret Framework

**Jeff Bezos' Method**

**Question**
- "What choice would I regret least when I'm 80?"

**Example: Amazon Founding**
- Stable job vs Starting a company
- "Won't regret failing at startup"
- "Would regret not trying for life"
- → Decide to start up

**Application**
- Long-term perspective
- Minimize regret
- Current anxiety < Future regret

### 4. Reversibility Test (Can I Undo This?)

**Two Types of Decisions**

**Type 1 (Irreversible - Cannot Undo)**
- Marriage, children, selling a house
- Must be careful
- Spend time pondering

**Type 2 (Reversible - Can Undo)**
- Job change, moving, hobbies
- Decide quickly
- Can change if it doesn't work

**Strategy**
- Type 1: Maximizer approach (thoroughly)
- Type 2: Satisficer approach (quickly)

**Examples**
- Netflix selection: Type 2 → Decide in 5 minutes
- House purchase: Type 1 → Plenty of time

### 5. Two-Option Rule

**Limit Choices to 2-3 Options**

**Problem with Too Many Choices**
- 10 options: 45 comparisons needed
- 3 options: 3 comparisons
- → Save time, energy

**Method**
1. List all options
2. Filter by criteria (keep only top 3)
3. Choose from 3
4. Ignore the rest

**Example: College Selection**
- 20 accepted → Narrow to 3 by criteria
- Compare 3 in-depth (campus visits, etc.)
- Quick decision, high satisfaction

### 6. Pre-mortem

**Looking Back from the Future**

**Method**
1. Assume 1 year has passed after decision
2. Imagine "total failure"
3. Find reasons for failure
4. Eliminate failure causes in advance

**Example: Starting a Business**

**Pre-mortem Session**

Business failed after 1 year. Why?

  • Insufficient market research
  • Lack of funds
  • Team conflicts
  • Failed to respond to competitors

**Proactive Measures**
- Thorough market research
- Secure emergency funds
- Prioritize team building
- Develop competitive strategy

### 7. Use Others' Advice (Wisely)

**Advice Traps**

**Bad Advice**
- "If I were you, I'd do this" (Their situation ≠ Your situation)
- "This is the answer" (Overconfidence)

**Good Advice**
- "Here's another perspective"
- "Have you considered this?"
- "This was my experience"

**How to Use**
- Get advice from 5+ people
- Find common points (collective wisdom)
- But final decision is yours

### 8. Elimination Method

**Subtract, Don't Add**

**Method**
1. List all options
2. Eliminate "absolutely no"
3. Repeat
4. Choose what remains

**Example: Career Choice**

10 options 1st elimination: Uninteresting fields (remove 5) 2nd elimination: Fields without growth (remove 2) 3rd elimination: Poor work-life balance (remove 2) → 1 option left (choose!)


**Effects**
- "What should I choose?" → "What can I eliminate?"
- Decision becomes easier
- Clear judgment

### 9. Set a Deadline

**Parkinson's Law**
- Work expands to fill the time available
- Without a deadline, ponder forever

**Method**
- "Decide within a week"
- Set a timer
- Force decision

**Examples**
- Job offer: "Respond within 3 days"
- House purchase: "This month"
- Investment: "Decide by tomorrow"

**Effects**
- Prevent perfectionism
- Reduce [decision fatigue](./reduce-decision-fatigue)
- Increase execution

### 10. Start Small (Pilot)

**Break Big Decisions into Small Ones**

**Traditional Method**
- Job change: Quit → New workplace
- High risk

**Pilot Method**
- Job change: Start as freelancer first → Switch if good
- Low risk

**Examples**
- Startup: Start with side project before quitting
- Moving: Live in the neighborhood for a month first
- Career transition: Bootcamp, internship first

**Effects**
- Decide after actual experience
- Low failure cost
- Increased confidence

## Signs of Bad Decisions

### 1. Emotional Decisions

**Warning Signs**
- Deciding when angry
- Deciding when excited
- Deciding when depressed

**Solution**
- "Decide after 24 hours"
- Re-evaluate after emotions settle

### 2. FOMO-Based Decisions

**"Everyone's Doing It"**
- Investing during Bitcoin boom
- Applying to companies everyone goes to
- Buying trending items

**Solution**
- Ask "Does this match my criteria?"
- Use my standards, not others'

### 3. Sunk Cost Fallacy

**"I've Already Invested"**
- "I've been here 3 years, so I should keep working" (bad job)
- "I've paid, so I must continue" (uninteresting hobby)

**Solution**
- Ignore the past
- "Would I choose this if starting now?"

## Practice: Decision Process

### Important Decision Checklist

□ 1. Clearly define criteria (essential, preferred conditions) □ 2. Reduce to 2-3 options (elimination method) □ 3. Apply 10-10-10 rule □ 4. Is it reversible? □ 5. Pre-mortem (imagine failure in a year) □ 6. Get advice from 5+ people □ 7. Wait 24 hours (calm emotions) □ 8. Minimum regret question ("Will I not regret at 80?") □ 9. Set a deadline (by X day) □ 10. Decide → Execute


## Learn More

- [What is the Paradox of Choice? Basic Concept](./what-is-paradox-of-choice)
- [How to Reduce Decision Fatigue - Automate Trivial Decisions](./reduce-decision-fatigue)
- [Overcome Netflix Choice Paralysis](./netflix-choice-paralysis)

## Conclusion

The key to good decisions is **accepting "good enough"**. To overcome the [Paradox of Choice](./what-is-paradox-of-choice), you must become a Satisficer.

**Core Principles**
1. **Satisficer > Maximizer** - Sufficiency over perfection
2. **Criteria First** - Define criteria before looking at options
3. **Limit Choices** - Compare only 2-3
4. **Time Limit** - Set a deadline
5. **Long-term Perspective** - 10-10-10, minimum regret

**Practical Guide**

**Trivial Decisions (Type 2)**
- Decide in 5 minutes
- Satisficer mode
- Quickly, without regret
- → [Reduce Decision Fatigue](./reduce-decision-fatigue)

**Important Decisions (Type 1)**
- Use checklist
- Sufficient time (but with a deadline)
- Pre-mortem, advice, long-term perspective

**Most Important Question**
- "Am I looking for the perfect choice?"
- "Am I looking for a good enough choice?"

**Answer**: The latter!

"There is no perfect choice. Make a good enough choice quickly, and then make that choice the best."

The quality of decisions comes from execution after choosing, not the perfection of the choice! 🎯