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Mental Model: Gaslighting One of the big themes that I perpetually hit upon is that you, as a rational, responsible adult, should not outsource your thinking. When it comes to what matters in life, you must rely on your own judgment and analysis of the facts. In the words of Benjamin Graham, “You are neither…
Mental Model: Horns Effect and Halo Effect One of the most powerful, and potentially harmful, mental models you will encounter in your life is known as the horns effect and halo effect. It can cloud your judgment, and because it is closely related to the mere association mental model, has the power to cause you…
Mental Model: The Thief Among Us One of the things that has perplexed me for a long time is Charlie Munger’s insistence that a significant minority of humanity is wired in such a way that they will steal if given the opportunity, regardless of whether or not they need the resources they are taking…
There is a quick test that can help you determine if you rely on intuition or reflective reasoning (intellect) when making decision. Answer the following question as quickly as possible: “A bat and a ball cost $1.10 in total. The bat costs $1 more than the ball. How much does the ball cost?” Do you…
Wendy’s recent commercial introducing the remade cheeseburger named after founder Dave Thomas is one of the best examples of marketing and psychology I’ve ever seen. It’s brilliant; mental models applied in a constructive way. I’m not going to take the fun out of it, but be on the lookout for some of the clues…
Mental Model: Calibration Errors Calibration errors are when people lack the genetic or cultural ability to calibrate communication based upon the situation, people involved, or other contextual clues. To understand calibration errors as a mental model, it might help to give you three real-world scenarios that would require the observer to calibrate the hyperbole. A…
To Have a More Successful Life, Understand the Motivations and Motives of Yourself and the People Around You Last month, I promised to pull more essays from my past out of the file cabinet. This one dealt with motives and understanding how they influence human behavior. This insight is one of the reasons I decided…
For the past few years, I’ve kept a file on extended adolescence because it is one of the most common symptoms I see among the thousands of messages I receive each year from readers asking for advice. Often, they are dissatisfied with the way their life is going, yet they almost inevitably suffer from extended…
Mental Model: Using the Primary Mission of Your Life to Determine the Hierarchy of Priorities Between Task and Relationship One of my mentors from early in my career shared a mental model that has been a fantastic guideline and framework through which I’ve conducted my life. It involves determining the hierarchy between personal relationships and…
Many of the Problems In Your Life Are Due to Your Assumptions One of the biggest secrets to success in life and business is to always check your assumptions. Whether you realize it or not, you are full of assumptions. You walk around every day, all day, making assumptions about people, places, political parties, institutions,…
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