A powerful trick to improve decision-making skills
Did you know that every time we narrate an experience, it changes a little bit? Over the years, the story changes completely.
“So what?” you may ask.
Think about this. You are investing your hard-earned money in a small amount every month.
The moment you decide to invest is a crucial moment.
Two reasons:
1. You’re telling a story about that investment to yourself.
2. You won’t remember that story after 6 months. Because it will change with time.
After 6 months, you may mistake your random decision for financial success or vice versa. Due to cognitive biases.
How to circumvent this?
Solution: decision journal.
(Here’s my journal format: )
Every time you make an investment decision, record the story that you’re telling yourself. For example: “I’m purchasing 100 units of this stock as my stock-enthusiast friend recommended it with a 20% appreciation by Q-3 results.”
You can review your decisions when you redeem your investments or while checking the progress.
This is a powerful tool. Not only in the area of investments. But also important life events: such as a job change.
* Why you’re opting for this new job
* Which of your problems this new job will solve for you.
In essence, this tool helps you improve your decision-making skills.