Entrenchment Effect

I often become attached to my ideas, treating them like cherished creations. When presented with evidence that challenges my beliefs, I tend to react defensively. I would go to great lengths to justify my stance, especially if I've invested time in developing that idea. This bias has kept me from achieving success for far too long, and I wish to prevent that from happening to you.

To combat this, I now pause to consider any constructive feedback from credible sources. While it’s challenging to accept criticism, especially when it contradicts my views, I recognize its importance. I’ve learned to value insights from those who either excel in the area I’m exploring or have stumbled in similar pursuits.

Output Equals Input

I used to believe that the hours I put into my work directly equated to tangible results. Yet, countless professionals, from cobblers to ice cream vendors, work hard without necessarily creating value. It’s crucial to remember: "In Creating Value."

To measure my progress, I now reflect each night on whether I’ve built any equity through my efforts. I meticulously plan my day and ensure that each task contributes value. This focus helps me avoid unproductive activities, including time spent on social media.

David Perell offers an insightful analogy on the importance of writing, which emphasizes the value of clear expression.

Hyperbolic Discounting

When faced with choices like receiving $20 today or $200 a year later, many, including myself, often lean towards immediate gratification. Laurence Endersen’s book, "Pebbles of Perception," highlights this cognitive bias, showing how humans tend to prioritize short-term rewards over long-term benefits.

This tendency can lead to impulsive spending and significant debt, particularly as we approach retirement. I’ve made my fair share of regrettable purchases, too.

To counteract this bias, I've shifted my spending towards experiences—like attending seminars or taking vacations—rather than material possessions. For purchases over $100, I now take a day to reflect, ensuring that I truly value the item before committing my money. However, if someone suggests I forgo small indulgences for investment, I kindly decline.

Morgan Housel, in his book "The Psychology of Money," wisely notes that financial success is more about behavior than intellect, which resonates deeply with me.

Summing Up

To enhance your decision-making and overall success, gather feedback from trustworthy sources and consider their perspectives. Focus on activities that create genuine value for your future self or your clients. And always think critically before making significant purchases.

The first video, "31 Cognitive Biases to Avoid for Smarter Thinking," offers insights into identifying and overcoming these biases for clearer thinking.

The second video, "12 Cognitive Biases Explained - How to Think Better and More Logically Removing Bias," provides a deeper understanding of these concepts and practical strategies for better decision-making.

👋 Let's connect! Follow me on Twitter and Instagram, and make sure to keep up with my posts here on Medium.