Try to be a satisficer whenever possible, only maximize on the things that REALLY matter.ĭon’t worry about opportunity cost too much. To manage our energy and make better decisions, we need to analyze where we can reduce decision making in our lives using rules and systems so we can focus on what matters.
In the short term we regret failures in how we acted, but in the long term we regret the times when we didn’t act . We can experience “anticipated regret” before even making a decision by worrying about what we might end up regretting as a result of the choice we make. We tend to think we want choices, but once we have them, we want someone else to decide for us. Trying to maximize all the time is a recipe for unhappiness.Ĭreating rules and “second order decisions” is a great way to limit your decision making. It makes the psychological consequences of mistakes greaterĪ maximizer tries to find the absolute best option, a satisficer finds one that’s good enough.Having more options and opportunities has three bad effects: We care more about not losing $50 than earning $100. Loss Aversion: We weigh losses as much as twice as much as gains. Our predictions about how we will feel during an experience, and our memories of how we did feel, both tend to be innacurate. Peak End Effect:We most remember how experiences felt at their peaks, and how they felt at the end. The majority of people want more control over their lives, but they also want to simplify their lives.
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