About This Framework
The Decision Detox 5-Step Framework is a practical approach to overcoming cognitive biases and making better decisions. This cheat sheet provides a condensed version of the framework that you can reference whenever you're facing an important decision.
Use this framework to identify when cognitive biases are affecting your thinking, understand their impact, and implement strategies to make more rational, evidence-based decisions.
Note: This is a simplified version of the complete framework available in the full Decision Detox guide.
The first step is to identify situations where cognitive biases are likely to affect your decision-making. These typically occur when:
- You're making decisions under time pressure
- You're dealing with complex or ambiguous information
- You have strong emotional investment in the outcome
- You're facing information overload
- You're making decisions in unfamiliar domains
Create a "bias trigger checklist" for yourself. Before making important decisions, review the checklist to see if any bias triggers are present.
Once you recognize a potential bias trigger, identify which specific cognitive biases might be influencing your thinking:
Common Cognitive Biases
- Confirmation Bias: Seeking information that confirms existing beliefs while ignoring contradictory evidence
- Availability Bias: Overestimating the likelihood of events based on how easily examples come to mind
- Sunk Cost Fallacy: Continuing to invest in something because of what you've already invested, not because of future value
- Anchoring Bias: Relying too heavily on the first piece of information encountered
- Overconfidence Bias: Overestimating your knowledge, abilities, or the accuracy of your predictions
- FOMO (Fear Of Missing Out) - a form of availability bias
- Confirmation bias - focusing only on potential gains, not risks
- Authority bias - trusting your friend's recommendation without sufficient research
Ask yourself: "What would I advise a friend to do in this situation?" This can help create psychological distance and reduce bias.
Once you've identified potential biases, create psychological and temporal distance from the decision:
- Implement a mandatory waiting period before finalizing important decisions
- Use the "10/10/10 Rule" - How will you feel about this decision in 10 minutes, 10 months, and 10 years?
- Write down your thoughts and reasoning to create objective distance
- Change your physical environment to gain a fresh perspective
- Take 48 hours before making any commitment
- Write down all the pros and cons
- Consider how this investment fits into your 10-year financial plan
Set up "cooling-off periods" for different types of decisions. For example: 24 hours for purchases over $100, 1 week for purchases over $1,000, 1 month for major life decisions.
Actively search for information that contradicts your initial inclination:
- Play devil's advocate with your own thinking
- Consult people with different perspectives
- Research counterarguments and alternative viewpoints
- Consider the opposite of your initial conclusion
- Use the "pre-mortem" technique: Imagine the decision failed and analyze why
- Research similar ventures that have failed
- Consult a financial advisor who has no stake in your decision
- Ask your friend about the biggest risks and potential downsides
- Imagine the investment failed completely and analyze what might have caused it
For important decisions, create a "Red Team" - a person or group whose job is to find flaws in your thinking and present counterarguments.
Make your final decision using structured reasoning techniques:
- Use a weighted pros and cons list
- Apply the "WRAP" method: Widen options, Reality-test assumptions, Attain distance, Prepare to be wrong
- Consider opportunity costs
- Evaluate decisions based on expected value
- Document your decision process for future reference and learning
- Create a weighted pros/cons list with importance ratings for each factor
- Calculate the expected return considering different probability scenarios
- Compare this opportunity with other ways you could invest the same money
- Document your reasoning process in a decision journal
Keep a decision journal where you record important decisions, your reasoning, and expected outcomes. Review periodically to improve your decision-making process.
This cheat sheet is designed to be printable. Use the button below to download a PDF version or simply print this page.
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