Mental Models - 2023
These are a few mental models that I have found to be useful for leading a peaceful life- some of them have come through following certain great thought leaders, entrepreneurs and value investors who were all philosophers in their own way.
- The Happiness Equation: I was hearing the amazing podcast- The One Percent show by Vishal Khandelwal with Rohit Chauhan as the guest. The profound way of looking at happiness as stoically as a mathematical formula of Have/Wants and working towards maximising it was very reassuring.
- 1% improvement everyday [Compounded Repitition in the right direction]- There is no magic elixir for turning into a better person in terms of overall living, health, relationships or wealth. It is the untiring and disciplined approach to following certain maxims and ensuring enough bias for action to do certain activies even if they appear dull as certain point. If you want to prioritise health, start exercising, eating in fixed intervals with fasting or following a disciplined diet which suits your well being. There is no shortcut to this process nor there is an excuse for the body becoming tired both mentally and physically every Friday.
- Lollapalooza Effect - Coined by investor Charlie Munger, it describes the phenomenon where multiple cognitive biases acting together lead to significant, often unexpected outcomes. This effect brings together several "mental shortcuts" , pushing you towards a particular decision or behavior. Understanding this effect can help you avoid its pitfalls and make more informed choices in life. However, to understand it, one needs to be aware of the various biases - optimism bias, confirmation bias, sunk cost fallacy and availability bias to name a few.
- Mean Reversion - This mental model helps one to avoid getting attached to certain highs or lows, helps practice gratitude and increases patience. It is the statistical concept that extreme events or outliers tend to move back towards the average over a period of time.
- Acceptance: Stocism as a practice really helps in understanding the boundaries of our control and dealing with certain uncontrollable circumstances. The art of living by the stoic philosopher Epictetus is a good read to understand this philosophy and start practicing it in some form.
