Afford Anything | Make Smart Choices About Your Money, Time And Productivity

#204: You make decisions on a daily basis about your career, family, friendships, health and investments; these choices shape your life. But how much have you thought about how to think? There are common threads and collective wisdom across disciplines. These common threads create mental models, which are frameworks for understanding the world. Mental models allow us to apply insights from a variety of unrelated fields, using reasoning by analogy to make better choices about our lives. For example: Critical mass is a concept from physics that can be applied to our understanding of microeconomics or entrepreneurship. The availability heuristic and filter bubble are concepts that we can use to check in with ourselves whenever we’re assessing risk in our businesses, careers or personal safety. Loss aversion and information aversion are notions that, when articulated, allow us to understand why we hesitate to learn more about investing during recessions. Mental models can make us better thinkers. Warren Bu