Most of us will be “adulting” for 50+ years.
Half a century is more than enough time for choice to impact outcome.
Here’s how I stack the deck.
Understanding three things greatly simplifies decision making:
- Payoff function
- Worst-case scenario
- Who bears the worst-case scenario
In most cases, knowing the above eliminates the need to make any prediction (of an unknowable future).
In investing, you can bet big when someone else bears your downside (non-recourse leverage, other people’s money). At home, you will want to be more careful.
You are going to be tempted to spend most of your time predicting an unknowable future.
Instead, figure out the payoff function, what’s the worst that can happen and who bears that downside.
Previous writing touched on the payoff functions for fame, financial wealth, strength training and personal freedom.
Tim’s blog did a great job of laying out on his worst-case scenario – shot in his own home as well as a brain dump of everything that can go wrong, and right, with fame. It was an enjoyable read but life is too complex to perform cost-benefit analysis for every choice.
Sounds good, doesn’t scale.
One of my favorite shortcuts is to teach myself the areas of my life where I have a lousy track record, and defer to my expert advisor(s). I look for advisors with domain-specific experience and a temperament different from my own then… …I do what they recommend.
There’s deep wisdom in stepping outside ourselves => What Would Jesus Do, or Buffett, or your coach, or whomever you think knows better than you.
Each time I choose, I open the opportunity to make a mistake. To reduce unforced errors, there are filters I use to eliminate the need to make a choice and to make the correct choice obvious.
First level filter => repeat my choice for a decade, where’s this likely to take me?
What’s the worst that can happen? Live long enough and you’ll see it happen.
Specifically, I want to stay well away from:
- Permanent Disability
- Self Harm
The first three are obvious, but that doesn’t stop many, many people from surfing close to the edge, or getting an emotional rush from having charismatic risk-seeking friends.
Sometimes I need to phase out a relationship, sometimes I need to adjust my own behaviors.
With marriage, specifically, it’s impossible to “see” just how challenging your life will become if you have kids. You’re going to be really, really stressed out for a decade. Every single one of my prior bad habits tried to make a re-appearance in my life!
There’s no easy way around it but you can significantly reduce your chance of disaster if you pay attention to how your potential mate approaches risk.
Personally, I like to drive with people. You can learn a lot about someone by chatting, and watching, while they drive in traffic.
It is difficult to let charismatic sociopaths out of our lives. These people are a lot of fun to hang around with, especially when we aren’t the target of their ire. It gets easier with a few bad experiences.
When you need to make a change, resist the urge to justify your choices.
Learn to ghost with grace.
What if we are the person that needs to change?
Owning my choices and considering where they might take me.
Mountaineering, peer choice, alcohol use, cigars, bike racing… as my life changed from “just myself” to “my young family” the following became clear to me…
The people who were bearing the downside had no choice in whether to take the risk.
To make myself feel better, I took out a long-term care policy. The insurance reduced the financial burden if I was disabled but didn’t address the mismatch between who was taking the risk and who was bearing the downside.
In my 40s, severe permanent disability could have been worse than death. In 2013, with three young kids and an impaired balance sheet, I was in a very different place than I hope to be when our youngest graduates high school (in 2030, or so).
Perhaps I’ll add back risky stuff in my 60s… right now, I doubt I’ll have the energy.
Divorce, violence and self-harm => the bottom half of the list.
- Nobody gets married hoping for a divorce.
- Nobody starts a drive hoping to get their car shot up in a road rage incident.
- Nobody repeats a pattern of justified rage hoping to create a crisis.
But these things happen, and their seeds are small choices, repeated.
I try to be alert to habits that can lead me astray.
Anger remains a challenge for me.
I pay attention to situations and habits that reduce my faults.
I focus on better.
Making a habit of the first-level filter, tosses all kinds of stuff into the forget-about-it pile.
Reminder about the 1st Filter => repeat for a decade, where am I likely to be?
The first filter very quickly gets rid of (most of my) bad ideas.
Here’s how I set priorities and shape my “to do” pile.
When I was an elite athlete, every decision I made was passed through a filter of, “Will this help me win in August?” At that time, the filter worked very, very well.
In 2005, I married and quickly realized my filter (of winning) would, if applied over many years, make a second divorce more likely. Deeply seared from my divorce, I really, really, really didn’t want another divorce.
I wanted a different result so I needed a different approach.
I needed to change my filter to…
“How will this impact my marriage?”
Your situation is likely different, but your need to know, and direct, your filter is the same.
Baby, or COVID, arrives… “How will this impact my family?”
Allocating time week-after-week… “What’s my real priority?”
Trivial irritations, the opinions of strangers… “Who gets my emotional energy?”
Every single person we meet has a filter => victory, vanity, external wealth, fame, likes, validation, please the person in front of me, attention, minimize conflict, how do I feel right now, what is the last piece of advice I heard… lots of people, lots of different filters.
Make a choice.
Iterate towards better.