Decision making is always tough, and after reading a few things on that topic, I have learned the following,
- Minimizing pain is more important than maximizing pleasure
Over time we get used to good things, but things which are a pain continue to be painful, and may in fact get worse. And just to be clear, this doesn't mean you should be risk averse - risk is entirely different from pain.
For example, if you have to choose between a large house which is far from where you work, vs a smaller one nearby - choose the smaller one that is nearby because as time passes, you'll get used to the larger house, that is, the largeness of the house will cease to be a source of joy, while the pain of commuting will only get worse. The smaller house has no pain, and no initial joy - but it never gets worse. The larger house has a good start, but progressively gets worse on the happiness factor it'll eventually fare worser than the smaller one.
- Don't decide with your brain if you are going to live with your heart ;-)
The heading is cheeky but it simply means - don't base your decisions on metrics that don't really matter.
It has been found that people who buy cars emotionally are more happy with their cars few years down the road compared to people who buy cars rationally comparing every single metric they know about. This is probably because small differences in the engine's horsepower are not going to matter unless one is racing while the comfort, aesthetics etc., ie. factors which might have an influence on one's daily ride. The same principle can be applied when one chooses between phones, headphones and so on. One can reliably leave the decision making to the gut when there are but small differences on a couple of metrics.
- Decision making state should be similar to decision execution state
When you decide on a future course of action, make sure that you are in a state that is as similar to the one you'll be in when you execute that decision.
For example, if you are planning to join a gym and you plan to go in the mornings, try waking up early for a week before committing to the plan. Save yourself the trouble of joining the gym on a relaxed evening and then find yourself wishing you didn't on a harried morning.
- Compare dis-similar items
This idea is bastardized from an old Seth Godin blog post. This logic is to be used when the decision making process involves just a single item, for example, deciding whether to buy a car or not, and if so the price range.
Lets assume the problem is in setting the range between INR 600,000 vs INR 700,000. Instead of seeing the difference of INR 100,000 only in terms of a car, like more horsepower etc., deciding will be easier when its thought of as a home entertainment system/ gaming system/ lazy boy chairs etc. In other words, do you prefer a cheaper car plus a home entertainment system or just a costlier car alone. The rational part of the brain can then compare whether the extra horsepower is worth giving up the entertainment system or not.
- Toss a coin
When all else fails - fix your outcomes to the toss of a coin. Toss it high and if you find yourself wishing that heads or tails show up - go for it, that's what you really want!
