Sometimes being a “slow thinker” is a real compliment.

Choices and their consequences are never certain. But countless individuals take unnecessary chances every day, without regard to statistics, when it comes to making decisions about wealth and money. When the Powerball lottery in the United States topped $1 billion, ticket sales skyrocketed, despite the odds being increasingly against the players that risked their earnings. Why do people do that? We are driven by our emotions and if System 2 or Slow thinking isn’t used enough, our Fast Thinking’s impulsiveness will take charge to fuel our every decision. So what? Here’s the key: Do your homework when it’s not an area of expertise for you. The fact is that we all need reference points in order to think well. This is true in decision-making, creative endeavours, and even our memories are shaped by our perception – the reference point – formed when the memory occurred. For example, if your first experience of eating gumbo left a bad taste in your mouth (see what we did there?), you’ll likely remember that bad flavour every time you hear anyone speak of gumbo. A reference point memory was made. Other events - rare events - can also shape your view on the world as a whole. If you hear about a horrible accident involving trains, you may subconsciously avoid trains for awhile, even knowing the odds of such an event happening to you are astronomically high. The same can be said about that billion dollar Powerball lottery or any other lottery drawing. The odds are certainly stacked against your chances of winning and yet, people buy a ticket anyway.  If you believe in your heart that your chances of winning are as good as the next player’s chance at hitting the lottery, you have “framed” a positive outlook to an unlikely event. Why are we telling you all this? Because narrow framing – using too small of a data set/no data - can narrow the perceived scope of available options when you’re making decisions (especially really important decisions). When emotion is in play, such narrow framing can lead wealth holders to suffer loss and regret. How decisions are framed in the mind speaks volumes on how the ultimate outcome of business and personal decisions will be. It is all a matter of wise decision-making and sound choices, balancing your Fast and Slow Thinking to achieve the best opportunities available. What is the antidote to this? Planning. If you’ve worked with us, you know that we have a process that carefully explores the areas that need to be explored before you start making decisions, and certainly before we start making recommendations. Know when to slow it down.