How to Make Better Decisions
Decision-making: the action or process of making important decisions
Decision-making is a field studied in what is called neuroeconomics - what happens in our brain when we make economic choices. Sometimes we all get stuck in a rut of making one bad decision after another, as small or as big as these decisions may be. So what can you do, if you realise this is happening to you?!
Perhaps most important is the realization that we could be making better decisions and realizing what the other options are. Then the first step towards making and taking the better choice is understanding where we currently go wrong. “Better” of course is relative, sometimes it is only apparent that there are choices in hindsight.
But whatever it is, I find that it helps tremendously to take a step back and look at things from a broader perspective - it’s not just about how you’re feeling in the moment at times, you also have to be able to witness the scenario from different angles. From studies it was found that we are more preoccupied with the notion/reality of loss when making decisions, rather than the possibility of gaining something. So our brains may enter a stage of option paralysis at times. If you think about it, most of the time we do make decisions which feel safer, which support the path of giving up less of what you already have and know. We would think that paralysis hits when it comes to the big decisions in our lives, yet at the same time we are faced with the choice of selecting from a variety of more than 30 jams or herbal teas on supermarket shelves, and dozens of shades of white paint...we are truly spoilt for choice…
So if you’re ever in a jumble or are quickly become anxious when there are too many options, here are some pointers:
Avoid wasting time with a failsafe framework
What is called an ‘heuristic framework’ is a set of overarching rules you put in place to help you make everyday decisions that work for you. So if you want to ensure you stick to your healthy food lifestyle, you may decide: ‘I will always serve food on smaller plates to keep the portions appropriate and keep certain snacks away from eye level in the fridge/freezer so as not to be too tempted’.
You may have frameworks to help you make decisions whilst out shopping for food, clothes, tech, equipment, and the like, as well as frameworks to help you keep to your budgets.
Take an outsider’s viewpoint
There are two systems working at the time of decision-making: the insider and the outsider brain, so to speak. Insider thinking is used most often as it is rapid, intuitive, effortless and uncontrolled.
Then outsider thinking comes into play when we need to be more logical and take the time to think about all the possibilities/scenarios.
In reality insider thinking is what we need to become more in-tune with. The more we know and trust our intuition the stronger we become and the more comfortable we can become with how we take decisions.
Outsider thinking comes in handy because you are able to detach yourself from the situation, leaving your emotions behind and seeing things as they are - unbiasedly. This kind of thinking allows you to place yourself in someone else’s shoes more often - making you more empathetic.
Spend your time and money on unusual things
How we spend our money has more of an effect on us than how much money we actually have. Research has shown that we are happier when we purchase something unusual or something we don’t often indulge ourselves in. So once in a while treat yourself to something you enjoy, something you’re not used to buying on a weekly/monthly basis.
Experiences tend to be better than objects so perhaps opt for a weekend break or a night out.
Try not to let a bad experience cloud your judgement
Decision-making is usually biased by recent good or bad events that have taken place. If you realise this happens and that it’s hindering you from experiencing something you want to do, but can’t seem to get yourself over, you should take the law of regression to a mean, into account. This law states that an unusual event is usually followed by an ordinary one - in other words, something will never happen the same way twice, so it’s unlikely that you will experience the same outcome.
If still in doubt listen to your intuition - it will guide you, trust yourself.
Choose consumer goods quickly
Studies show that when we make quick, intuitive decisions we turn out happier than if we had pondered between choices for too long. When it comes to purchasing goods and services our gut instinct is usually best adhered to, because it is so accurate. It makes sense - the more time you give yourself to dwell on other possibilities the more indecisive you become, and really these are the type of decisions our gut comes in to save us for.
Try to keep your range limited, so whilst you still have multiple choices you’re not lost inside them.
Realise how much there is to learn and slow down
We have a tendency to be somewhat overconfident when it comes to making decisions. Try to learn from others and listen to their experiences, especially if they’ve been through the same things. Just listen to gain their wisdom. This is not to say that you follow their advice or example, but to simply listen to one who has been before.
Know that you may learn to love, what at first seemed like a bad decision
When it comes to the small decisions there’s no need to worry or spend time regretting your decision. You soon adapt and most importantly may even learn to accept and love your choice. You never know until you give your choice a chance.
