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Universal Mental Models (Cognitive Biases (The most important tool we have…
Universal Mental Models
Cognitive Biases
The most important tool we have is our mind. However, our mind has well-documented biases that lead to us making irrational thoughts. By understanding and counteracting these biases, we can increase the quality of our decisions, and therefore our destiny.
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Cause & Effect
Our world is ruled by a complex set of cause & effect interactions. People who are more advanced with cause & effect are able to get more leverage with their actions. The better you can understand what causes what, the better you can:
- Solve problems by diagnosing root causes.
- Identify what to do now in order to cause the goals you want to happen.
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Behavior Change
Knowing what to do is only half the battle. Many people aren't able to turn their intentions into consistent habits because of procrastination.
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Network Building
Networks appear everywhere; networks in our brain, networks of friends, networks of people in an industry, etc. All networks have underlying patterns. By understanding those patterns you can drastically get better results in many areas of you life.
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Problem Solving
Most people avoid problems or deal with them haphazardly. Great thinkers and leaders, on the other hand, look for problems, and have frameworks that help them solve problems better.
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Scientific Method
The scientific method is a set of principles and methods that have led to the greatest explosion of knowledge that humanity has ever know.
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Blinded, Randomized Design
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Learning How To Learn
Learning how to learn leads to a double exponential where you get 10x the value for each hour you spend learning. Learning faster and better helps you adapt to any environment quicker than others and find better paths to your goals.
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Goal Setting
If we set the wrong goal, then no amount of strategy or efficiency will help. Good strategy will only help us get to the wrong place faster.
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Compound Interest
One of the most important models of cause & effect to know is a positive feedback loop. Positive feedback loops lead to power law curves. Most people think linearly and systematically undervalue the power of consistently doing small things that add up over time (i.e. investing in health, learning, and money). The best investors in the world understand and leverage the power of compound interest.
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Opportunity
It doesn't help to just be smart or have relationships or money. These are assets. To get those assets, you need a catalyst. That catalyst is opportunity.
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