Justin Wright
Your success, my mission | Ex-CIO now entrepreneur | Ranked top 10 creator worldwide | DEIB ally | Follow for research-backed tips on leadership & self-mastery
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15 biases you don't know are costing you money:We all have cognitive biases.Understanding them is the first step to avoiding them.It helps you make better choices.(You can find part 1 of the list in my profile.)⭐ Cognitive Biases Ultimate Cheat Sheet: Part 2 ⭐How knowing these helps you:Base-Rate Neglect: Use real stats, not just gut feelings.Contrast Effect: Don't be fooled by relative deals.Groupthink: Avoid costly herd mentality.In-Group Bias: Don't overspend on team loyalty.Liking Bias: Separate friendship from finance.Loss Aversion: Don't miss out on profitable risks.Optimism Bias: Plan for the unexpected.Overconfidence Effect: Avoid investment blunders.Reciprocity: Don't be guilt-tripped into spending.Scarcity Error: Resist impulse buys.Status Quo Bias: Don't stick with costly habits.Story Bias: Don't buy into the hype.Survivorship Bias: Evaluate all options, not just the successes.The Illusion of Control: Know when you're gambling.The Paradox of Choice: Avoid choice paralysis and buyer's remorse.Take charge.Master these biases.Make smarter choices today.Which bias do you think is the hardest to overcome?P.S. Repost to help others in your network too ♻️.Thank you!📌 Want a high-res PDF of this cheat sheet?Try my free newsletter (link in my profile).You'll get all 12 of my cheat sheets for $0.
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Justin Wright
Your success, my mission | Ex-CIO now entrepreneur | Ranked top 10 creator worldwide | DEIB ally | Follow for research-backed tips on leadership & self-mastery
4mo
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📌 BONUS BIASESWatch out for these too:1. Chauffeur KnowledgeYou know facts but don't understand the underlying principles.Ex: Talking about a complex topic like you're an expert after reading a summary.2. Fundamental Attribution ErrorYou judge others' actions as traits but your own actions as situational.Ex: Thinking someone is lazy for being late, but blaming traffic when you're late.3. Incentive Super-Response TendencyYou react strongly to incentives, sometimes irrationally.Ex: Overeating at a buffet just because it's "all you can eat."4. Pessimism BiasYou overestimate the likelihood of negative outcomes.Ex: Assuming you'll be stuck in traffic, so you leave an hour early for a short trip.5. Social LoafingYou exert less effort in a group than when alone.Ex: Slacking off on a group project, thinking others will pick up the slack.
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Justin Wright
Your success, my mission | Ex-CIO now entrepreneur | Ranked top 10 creator worldwide | DEIB ally | Follow for research-backed tips on leadership & self-mastery
4mo
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📌 HERE'S THE LINK TO PART 1https://www.linkedin.com/posts/jwmba_mastering-these-16-biases-gives-you-an-advantage-activity-7099375476531482624-9hZ3
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Eric Partaker
The CEO Coach | CEO of the Year '19 | McKinsey, Skype | Author | Follow for posts about business, leadership & self-mastery.
4mo
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As Henry Ford said, "Whether you think you can or you think you can't, your exactly right." So if everything begins and ends in the mind, it's important to get your thinking right. Thanks for the help!
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Roel Timmermans
I help leaders improve company culture and get teams to thrive | ⛳ Decade of experience with €1B+ companies | interim available as team lead
4mo
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Confused, looking through all the screenshots I made of your posts thinking if I already saved this...*Screenshot it anyhow*
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Gabrielle Long
Strategic Leader | Continuous Improvement | Processes & Documentation | Lean Six Sigma Black Belt
4mo
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Awww... I thought I was going to nail this list until I got to the very last one! I'm terrible at picking movies! 😂 All seriousness, this is actually a pretty good/thorough list. Would be a helpful tool for leaders in educating against and seeking out poor employee behaviors to help build a more innovative and positive culture in their departments/companies as well as to help eliminate waste that so many companies experience due to error, rework, and low-impact efforts.
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Daryl Daley
4mo
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Self-awareness emerges as the beacon of clarity.Self-awareness is the shield for the authenticity of our choices.This is a great post Justin WrightParticularly in the hiring and promotion decisions that need to be made daily.
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Mehmet Atici
Sharing Knowledge of Business & Marketing | 15+ Years Professional Engineer in Mainline Pipeline & Trenchless Technologies | 20+ Major projects 8000km in Total Length | MBA & M.Sc in Engineering | +Follow for daily tips
4mo
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Paradox of Choice here is a TED talk for that https://youtu.be/VO6XEQIsCoM?si=2FxO6g3RB_MtIrvb
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Stephanie Seege
The Reboot Mindset Coach | The Sticky Fairy - 200K+ IG, TikTok & YouTube Audience l Founder kAAKAO Illegal Chocolate
4mo
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That's a lot to take in. I think I need to meditate. Thanks for a great cheat sheet Justin.
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Dan Prudhomme
Targetpreneur | Accelerating SMB sales with buyer persona-driven marketing, messaging, AI, and EduSells strategies | Follow for posts on business, relationships, and growth.
4mo
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Confirmation bias, Justin- It can be costly for reinforces existing beliefs, impacting fiancial decision.
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Dr. Christian Poensgen
Ultraproductive | Ranked #1 LinkedIn Creator in Productivity & Personal Growth | Follow for posts about habits, productivity & personal development
4mo
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Love this list Justin Wright. One of the papers of my PhD project was on biases. Being aware of them can make a huge difference!
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Heidi Shaw
New England Yankee. I teach people to think practically about their behaviors, find their path, and recognize their untapped skills.
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This is a great chart for identifying faulty thinking. Even better is the advice Justin offers in the post itself for how to avoid making these errors.
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Daniel Disharoon Jr
A highly self motivated, dedicated, and responsible person with excellent time management skills. Proven record handling many simultaneous tasks. Professional communicator who excels independently or in team
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Wisdom and introspection will stem from this 40 second read. Comment if you see more than one trait that you hold?
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Philip Ayles
Founder/CEO @ Ayles Solutions LLC | Transformative Self-Awareness Facilitator
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Something to think about
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Azam Ghani
Angel Investor | Founder IIPLA, Menteso, PatentZoom.us, World Litigation Forum, World IT Forum, World Finance Council - LL.M. UC Berkeley
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"Count the number of 8s you see in the picture. Some say 4, while others claim 6. Even the smartest of us have failed!"🔢🔥 Can you solve this viral visual puzzle? Test your observation skills and see if you can spot all the hidden 8s in the image! Challenge your friends and family to join in on the fun and find out who has the sharpest eyes! 👀💪🧩 Don't be fooled by the trickery of this mind-boggling puzzle. It has stumped many, even those who thought they were unbeatable. But we believe in your ability to conquer it!🔎 Put your detective hat on, zoom in, and examine every nook and cranny of the picture. The elusive 8s might be hiding in plain sight or cleverly disguised amidst the chaos. Keep your eyes peeled and your mind focused!🏆 Share your findings in the comments below and let us know how many 8s you spotted. Remember, there's no shame in seeking help from your fellow puzzlers if you're feeling stuck. Together, we can crack this viral challenge!
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Ajay Tandon
Former MD & CEO at Tata Autocomp | GM | GE | Godrej & Boyce| IIM-Ahmedabad | IIT Madras
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On 28 th November 2023 we lost one of the wisest person of our time. Charlie Munger passed away last month at the ripe old age of 99.One of his ideas was “The Power of Inversion thinking”. The way this model works is If you want to achieve “X” then list all the things which you can do to achieve the opposite of “X” and then simply avoid those. Here are a few examples (1) If you want to be FIT then avoid things that make you UNFIT eg unhealthy food, not having enough sleep etc. (2) If you want to become RICH then avoid things that can make you POOR eg spend more than you earn, make no investments, etc. (3) If you want to be HAPPY then avoid things that can make you SAD eg poor relationships, no purpose in what you are doing etcThis powerful thinking tool encourages us to approach a problem backwards, putting the spotlight on preventing bad outcomes. This model of “Inverse Thinking” can also help in identifying blind spots in our thinking process.
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Denzil Eden
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Feeling stuck? Try reframing!Humans are quick to contextualize. It's easy for us to get trapped in the 'framing' presented before us.There is an art to recognizing the frames presented to us. Start with questioning the:- Numbers: Relative 📊 vs. Absolute 🔢Is a 10% increase in sales significant? Compare that to an absolute number: "We sold 100 more units this quarter."- Words: Emotive 💔 vs. Dispassionate 📄Consider "The tragic accident was heart-wrenching" against "The accident resulted in several injuries."- Images: Vibrant 🌈 vs. Dull 🌚Think of a bright, colorful advertisem*nt vs. a muted, serious public service announcement.Recognizing the biases that are presented to us gives us opportunities to question our initial perspective. Reframing allows us to shift and play with what we know, helping us see things from different angles and ultimately building a clearer, more accurate and objective picture 🔄Tips for Effective Reframing:- Diversify Your Sources 📚: Get information from various places.- Explore Different Causes 🧠: Look beyond the obvious reasons.- Think of Broader Outcomes 🌍: What are the long-term implications?Always challenge yourself: Are the facts and figures presented relatively true, or are they absolute truths? Questioning what's presented to us and seeking facts help us change our perspective. Dive deeper, ask questions, and manipulate the frame! 🔍🔄Check out my series: which mental model when?https://buff.ly/45pWvaZ
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Steven Spiker
Operations Manager who specializes in hospitality, team building, and profitability.
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This is a great reference tool for thinking through some business challenges. The Pareto principle and the Law of Diminishing Returns two of my favorites.
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Gonzalo Cadenas
VP of Technology at Globant
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*Mental Models!* How do you frame a problem, and search for solutions..Loved this tweet https://lnkd.in/dS8pV_pg from @MnkeDaniel1. First Principle Thinking - Rethink the problem from the ground up._Separate the underlying facts from assumptions made based on them.2. Second-Order Thinking - Instead of thinking about the immediate consequences, think about the second-level consequences.3. Inversion - Look at the problem at hand from the endpoint instead of the starting point._Don't ask: "What do I need to do?"_Ask: "What must I avoid?"4. Opportunity Costs - Think about the costs that arise because you decide in favor of one option and thus against every other option.5. Randomness - Keep in mind that there aren't always cause-effect relationships._Lots of stuff is random.6. Leverage - “Give me a lever long enough and I shall move the world.” - Archimedes7. Margin of Safety - Assume that your assumptions can be wrong and plan with a safety margin.8. Occam's Razor - Always choose the less complex explanation/option._"Never multiply unnecessarily."9. Law of Diminishing Returns - Up to a certain point, additional units offer more value. But there's a turning point where additional units offer less and less value and costs rise.10. Niches - Specializing is an effective way to success. Use it and choose a niche where you become an expert.
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Expilab
539 followers
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💡How mental accounting shapes spending habits.Mental accounting involves categorizing and organizing expenses in your mind, significantly influencing spending decisions. 🧠 🔎 How is this performed? Consumers construct a mental map resembling a tree, with spending categories connected by branches, guiding specific spending and saving choices. What's truly fascinating is how we mentally categorize items and adjust spending, based on perceived relationships between products.Understanding this phenomenon can be valuable for marketers in refining their strategies. Individuals, too, can leverage this knowledge to enhance their budgeting skills.❇ Read the full insights here: https://lnkd.in/dcyHh38b#BehavioralEconomics #MentalAccounting #ConsumerBehavior
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Betsy Allen
Fitzmaurice Voicework®️ coach and Writer
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Knowing your Why is another way of saying knowing your who; understanding Who-What-Where-When-How “it” happened to YOU answers your Why. I live in the “feel it to heal it” mindset, but I will caution that truly feeling one’s feelings comes at a cost. The cost is your time. You will no longer be able to ignore your traumatic experiences, and this will cost you time & maybe a little bit of money. So, investigate the safe spaces available to you & utilize them. Seek qualified help, not just a wellness or life coach who did that work because they were/are stuck, then organize your time so that you can truly SPEND TIME feeling & healing in a safe space where you can grow into being the hero of your own life. A few year’s ago I had the pleasure to read Lori Gottlieb’s book, Maybe You Should Talk To Someone, and I recommend her story to accompany anyone on their necessary journey to figuring out the Why of feelings. Take your mental health seriously because there is no optimal fitness of body without buoyant mental health. Be well and live your truth🌿
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