Good decisions shape good lives. Yet every day we fall into predictable traps that lead to poor choices — from small errands to major career moves. This article outlines the most common decision-making mistakes and, more importantly, gives practical, actionable steps you can use immediately to make better choices.
Why decision mistakes happen
Decisions fail for two broad reasons: faulty mental shortcuts and messy processes. Our brains use shortcuts to save time and energy. These heuristics usually help, but they can also mislead.
If you want a deeper look at how shortcuts and biases shape choices, see this short guide on perception and decision-making which explains how your mind frames options.
Common mistakes (and what they feel like)
- Anchoring: Fixating on the first number or idea you see and letting it unduly influence later judgments.
- Confirmation bias: Searching for or favoring information that confirms your preconceptions.
- Availability bias: Overestimating the importance of information that’s easy to recall or dramatic.
- Sunk-cost fallacy: Continuing a losing course because you’ve already invested time, money, or emotion.
- Overconfidence: Believing your estimates or predictions are more accurate than they really are.
- Choice overload: Freezing or choosing poorly when faced with too many options.
- Halo effect: Judging unrelated qualities based on a single positive or negative impression.
To understand why these happen in the first place, read about our most common cognitive distortions in this article on cognitive mistakes.
Simple habits that prevent bad decisions
Small changes in how you approach decisions can produce big improvements. Try these everyday habits.
- Pause for 5 seconds. A short pause reduces impulsivity and gives your prefrontal cortex a moment to catch up. Use it before purchases, replies, or commitments.
- Limit options. Narrow choices to 3 meaningful alternatives. Too many options cause paralysis and regret.
- Set decision rules. Create simple if-then rules (implementation intentions). For example: “If a new personal project takes more than 5 hours setup, I test it for 2 weeks before committing.”
- Apply a cooling-off period. For big choices, wait 24–72 hours before finalizing. Time reduces emotional noise.
- Use a decision template. Create a one-page form with: goal, constraints, top 3 options, pros/cons with weights, next step.
Practical techniques — step-by-step exercises
Below are hands-on exercises to train smarter decision-making skills. Do them in short bursts and repeat across weeks.
1. The 10/10/10 test (5–10 minutes)
Ask: How will I feel about this decision in 10 minutes, 10 months, and 10 years? This reframes immediate impulses against longer-term values.
Exercise: For your next three small decisions (a purchase, a social reply, a work task), write the 10/10/10 answers. Notice how perspective shifts choices.
2. The pre-mortem (10–20 minutes)
Imagine your decision failed spectacularly. Ask: What caused it? List failures and then redesign to avoid them. This exposes blind spots and counteracts overconfidence.
Exercise: Before any big project, gather stakeholders (or yourself), imagine a year from now it’s a disaster, and write five reasons why. Use those reasons to change the plan.
3. The decision journal (2–5 minutes daily)
Record key decisions and the thinking behind them. Later, review outcomes to calibrate judgment.
Template: Date, decision, predicted outcome, reasons for/against, final choice, review date. After the review date, add what happened and key lessons.
4. A/B micro-experiments (variable time)
Instead of committing to one large choice, run small experiments to test assumptions. This reduces risk and provides real data.
Exercise: For a change you want (e.g., new morning routine), try two versions for one week each and track energy/productivity.
How to spot your personal traps
Self-awareness is the first defensive weapon. Use these quick checks before important choices.
- Ask: What am I avoiding? Sunk costs or fear of loss often masquerade as rational reasons.
- Check emotions. Are you making a decision when angry, tired, or elated? Delay if so.
- Seek disconfirming evidence. Intentionally look for reasons your favored option could fail.
- Set an accountability check. Tell a trusted person your plan and ask them to challenge you in a week.
Decision tools that actually help
Tools are only as good as the process that uses them. Here are reliable ones you can adopt without much fuss.
- Weighted pros and cons: Assign each factor a weight (1–5) rather than treating all pros/cons as equal.
- Decision tree: Map options, possible outcomes, and probabilities. Even a rough sketch clarifies choices.
- Checklists: Create a short checklist for recurring decision types (hiring, buying, investing).
- Timers and limits: Limit time for low-stakes decisions. Use longer windows for consequential ones.
When intuition is useful — and when it isn’t
Intuition is fast and often accurate when based on experience in a consistent domain (e.g., a firefighter sensing danger). It fails when the situation is new, complex, or emotionally charged.
Rule of thumb: Rely on intuition for routine, practiced areas. Use deliberate analysis plus experimentation for novel or high-stakes problems. For more on how subconscious processes shape choices, see how the subconscious works.
Practical daily checklist
Before finalizing a decision, run this 5-item checklist:
- Pause for 5 seconds. Breathe.
- Name the primary bias that could affect this choice.
- Apply a simple rule (limit options, weighted scoring, or a cooling-off period).
- Plan one small experiment or commitment phase if possible.
- Record the decision in your journal with a review date.
Quick tips to practice this week
- Start a decision journal and make one entry per day for a week.
- Pick one recurring choice (meals, purchases) and limit options to three.
- Try the pre-mortem on a planned weekend project.
- Use the 10/10/10 test for any emotional purchase.
Final thought
Better decisions are habits, not magic. You don’t need to eliminate emotion or certainty. You need simple structures that catch common errors and let good judgment flourish. Start small, practice often, and review honestly.
Summary
Common mistakes: anchoring, confirmation bias, availability bias, sunk-cost fallacy, overconfidence, choice overload, halo effect.
To avoid them: pause, limit options, use decision rules, run pre-mortems, keep a decision journal, and run small experiments.
Take one action today: create a one-line decision journal entry and set a review date. Build from there — your future self will thank you.