Mental Models in a Nutshell

Practical Thinking Frameworks to Amplify Your Decision Making and Simplify Your Life

By: Thinknetic

Narrated by: Eren Jaeger

Length: 3 hrs and 56 mins

Publisher's summary

What would you do if there was a tool to help you make better decisions in less time? You'd jump at the chance, wouldn't you?

Imagine you're seven years old and you're at the candy store with your father. You've got 10 cents, and there are two treats you'd like to buy.

The trouble is, together, they cost 15 cents. As your father advised you, spending your money wisely would entail getting the most favorite treats you can afford. And you'd be satisfied with the purchase!

Eventually, you decide to get only one of your favored brands. That one costs 5 cents, and with 10 cents in your pocket, you can walk away with two of those. So ultimately, while you may not have gotten everything you desired, you still got some of what you wanted.

Believe it or not, you used a mental model to help you make that decision. Or rather, at seven, you would have had the help of one of your father's mental models.

As you grew, you would have added bits of your own experiences to this basic framework to help you make similar purchases in the future.

Based on this example, can you see how mental models work?

Mental models help you filter information, which allows you to see things more clearly and make better decisions.

Mental models are also a shortcut to finding the quickest and the best route to solve your problems, whether work-related or personal.

The beauty of mental models is that their variety is virtually infinite, and they help you come up with solutions for just about any issue.

So you're thinking about opening a business. You're not sure what kind of business will be best. The law of Supply and Demand can help. It dictates that companies provide the goods and services demanded by the public. The most profitable companies are those that do this best.

Armed with this knowledge, you can now narrow down your options considerably.

Another that can assist you with your plans is comparative advantage. If you have a particular set of skills, but not others, it may be more cost-effective for you to enter certain lines of business, where you'll have a comparative advantage over your competitors, but not others.

"Developing the habit of mastering the multiple models that underlie reality is the best thing you could do," according to Charlie Munger, who credits his success to the lifetime cultivation of a "latticework" of mental models on which to frame his decisions.

The problem with the average person's mental models is that most are not designed to handle complexity.

And while the conscious use of mental models is possible, they require higher-order thinking skills that few people engage in for various reasons. But that doesn't have to be you!

Inside you'll find:

• How mental models declutter your thinking and stimulate decision-making (warning: immediate impact on 4 cognitive processes!)
• The Master List of mental models (including the best two used by Munger)
• 3 characteristics that help you to spot an excellent mental model
• Why we don't use mental models and what we tend to do instead
• How to acquire the skills you need for building your great "latticework" of mental models
• How to make your mental toolkit resemble a Swiss army knife in 5 steps

Munger is not the only prominent figure to have tapped into the insights provided by mental models. Elon Musk and Jeff Bezos have also repeatedly cited the central role in their personal and professional lives.

PLEASE NOTE: When you purchase this title, the accompanying PDF will be available in your Audible Library along with the audio.

©2022 Thinknetic (P)2022 Thinknetic

Cliffs notes

Like most of Thinknetic books theuy encompass a lot of information from other sources and put it in one place bite sized and easy to understand

Decisions, decisions

An excellent primer as to what to consider when having to make those hard decisions.

Did Not Meet My Expectations

I has high expecations, but this book did not meet them. The book was contained a wealth of interesting information, but little in the way information that I can apply on a daily basis.

Very Empowering Message

The most powerful thing I got from this book was the ability to realize that there are other dimensions to my thought process. I coach growth minded leaders and it is absolutely necessary for me to help my clients see things from other angles/dimensions/sides. This book really empowers me in that process of growth! Keep it up!