Justin Wright on LinkedIn: 15 biases you don't know are costing you money: We all have cognitive… | 117 comments (2024)

This is a great chart for identifying faulty thinking. Even better is the advice Justin offers in the post itself for how to avoid making these errors.

Wisdom and introspection will stem from this 40 second read. Comment if you see more than one trait that you hold?

Something to think about

"Count the number of 8s you see in the picture. Some say 4, while others claim 6. Even the smartest of us have failed!"🔢🔥 Can you solve this viral visual puzzle? Test your observation skills and see if you can spot all the hidden 8s in the image! Challenge your friends and family to join in on the fun and find out who has the sharpest eyes! 👀💪🧩 Don't be fooled by the trickery of this mind-boggling puzzle. It has stumped many, even those who thought they were unbeatable. But we believe in your ability to conquer it!🔎 Put your detective hat on, zoom in, and examine every nook and cranny of the picture. The elusive 8s might be hiding in plain sight or cleverly disguised amidst the chaos. Keep your eyes peeled and your mind focused!🏆 Share your findings in the comments below and let us know how many 8s you spotted. Remember, there's no shame in seeking help from your fellow puzzlers if you're feeling stuck. Together, we can crack this viral challenge!

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On 28 th November 2023 we lost one of the wisest person of our time. Charlie Munger passed away last month at the ripe old age of 99.One of his ideas was “The Power of Inversion thinking”. The way this model works is If you want to achieve “X” then list all the things which you can do to achieve the opposite of “X” and then simply avoid those. Here are a few examples (1) If you want to be FIT then avoid things that make you UNFIT eg unhealthy food, not having enough sleep etc. (2) If you want to become RICH then avoid things that can make you POOR eg spend more than you earn, make no investments, etc. (3) If you want to be HAPPY then avoid things that can make you SAD eg poor relationships, no purpose in what you are doing etcThis powerful thinking tool encourages us to approach a problem backwards, putting the spotlight on preventing bad outcomes. This model of “Inverse Thinking” can also help in identifying blind spots in our thinking process.

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Feeling stuck? Try reframing!Humans are quick to contextualize. It's easy for us to get trapped in the 'framing' presented before us.There is an art to recognizing the frames presented to us. Start with questioning the:- Numbers: Relative 📊 vs. Absolute 🔢Is a 10% increase in sales significant? Compare that to an absolute number: "We sold 100 more units this quarter."- Words: Emotive 💔 vs. Dispassionate 📄Consider "The tragic accident was heart-wrenching" against "The accident resulted in several injuries."- Images: Vibrant 🌈 vs. Dull 🌚Think of a bright, colorful advertisem*nt vs. a muted, serious public service announcement.Recognizing the biases that are presented to us gives us opportunities to question our initial perspective. Reframing allows us to shift and play with what we know, helping us see things from different angles and ultimately building a clearer, more accurate and objective picture 🔄Tips for Effective Reframing:- Diversify Your Sources 📚: Get information from various places.- Explore Different Causes 🧠: Look beyond the obvious reasons.- Think of Broader Outcomes 🌍: What are the long-term implications?Always challenge yourself: Are the facts and figures presented relatively true, or are they absolute truths? Questioning what's presented to us and seeking facts help us change our perspective. Dive deeper, ask questions, and manipulate the frame! 🔍🔄Check out my series: which mental model when?https://buff.ly/45pWvaZ

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This is a great reference tool for thinking through some business challenges. The Pareto principle and the Law of Diminishing Returns two of my favorites.

*Mental Models!* How do you frame a problem, and search for solutions..Loved this tweet https://lnkd.in/dS8pV_pg from @MnkeDaniel1. First Principle Thinking - Rethink the problem from the ground up._Separate the underlying facts from assumptions made based on them.2. Second-Order Thinking - Instead of thinking about the immediate consequences, think about the second-level consequences.3. Inversion - Look at the problem at hand from the endpoint instead of the starting point._Don't ask: "What do I need to do?"_Ask: "What must I avoid?"4. Opportunity Costs - Think about the costs that arise because you decide in favor of one option and thus against every other option.5. Randomness - Keep in mind that there aren't always cause-effect relationships._Lots of stuff is random.6. Leverage - “Give me a lever long enough and I shall move the world.” - Archimedes7. Margin of Safety - Assume that your assumptions can be wrong and plan with a safety margin.8. Occam's Razor - Always choose the less complex explanation/option._"Never multiply unnecessarily."9. Law of Diminishing Returns - Up to a certain point, additional units offer more value. But there's a turning point where additional units offer less and less value and costs rise.10. Niches - Specializing is an effective way to success. Use it and choose a niche where you become an expert.

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💡How mental accounting shapes spending habits.Mental accounting involves categorizing and organizing expenses in your mind, significantly influencing spending decisions. 🧠 🔎 How is this performed? Consumers construct a mental map resembling a tree, with spending categories connected by branches, guiding specific spending and saving choices. What's truly fascinating is how we mentally categorize items and adjust spending, based on perceived relationships between products.Understanding this phenomenon can be valuable for marketers in refining their strategies. Individuals, too, can leverage this knowledge to enhance their budgeting skills.❇ Read the full insights here: https://lnkd.in/dcyHh38b#BehavioralEconomics #MentalAccounting #ConsumerBehavior

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Knowing your Why is another way of saying knowing your who; understanding Who-What-Where-When-How “it” happened to YOU answers your Why. I live in the “feel it to heal it” mindset, but I will caution that truly feeling one’s feelings comes at a cost. The cost is your time. You will no longer be able to ignore your traumatic experiences, and this will cost you time & maybe a little bit of money. So, investigate the safe spaces available to you & utilize them. Seek qualified help, not just a wellness or life coach who did that work because they were/are stuck, then organize your time so that you can truly SPEND TIME feeling & healing in a safe space where you can grow into being the hero of your own life. A few year’s ago I had the pleasure to read Lori Gottlieb’s book, Maybe You Should Talk To Someone, and I recommend her story to accompany anyone on their necessary journey to figuring out the Why of feelings. Take your mental health seriously because there is no optimal fitness of body without buoyant mental health. Be well and live your truth🌿

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