10 Mental Models You Must Know

1. “Hanlon’s Razor”

We as humans often think people’s lack of response is because they don’t like us.

This assumption is wrong most of the time and it is safer to assume that they’re just busy.

*So, if someone doesn’t text you back, keep this in mind.

2. “Confirmation Bias”

This is the human tendency to seek out and interpret info in a way that supports what a person already believes. 

*You can find this all over Twitter, there’s always someone who misreads a tweet and gets triggered.

3. “Pareto Principle”

Results are not distributed equally. 

For example, 20% of workers at a company will produce 80% of the profit. 

*This is also known as the 80/20 rule. It shows up EVERYWHERE.

4. “Illusion of Control”

This is the tendency of people to overestimate their ability to control situations or events. 

*You can waste a lot of time/energy if you don’t understand this.

5. “Commitment and Consistency Bias” 

This is the desire to be (or appear to be) consistent with what you’ve already done. 

*So, if you’re good at writing, you will want to consistently prove that you’re still as good as you were in the past.

6. “Incentives” 

Incentives drive the world. 

They are constantly working behind the scenes to get you to sign up for something, buy something, vote for something etc. 

*Be careful with media specifically, they’re trying to get you to think a certain way, ALL THE TIME.

7. “Maslow’s Hierarchy of Needs”

Check this out: 

8. “Mechanical Advantage”

You may have noticed that it’s much easier to unscrew a bolt with a wrench than with your fingers- this is mechanical advantage. 

*Use tools (electronic ones too). We would still be living in caves if we didn’t invent tools to help us with activities.

9. “Surfing” 

This is a business principle of “riding the wave” of any new technology, trend or product. 

This is like when Instagram started using stories after Snapchat had made them. 

*Try to catch trends early and you can build tremendous wealth.

10. “Loss Aversion” 

This is people’s tendency to avoid a loss rather than work for an equivalent gain. 

*People are more upset about losing $20 than they are happy about making $20.