10 Mental Models that will level up your Thinking:
1. First Principle Thinking - Rethink the problem from the ground up.
Separate the underlying facts from assumptions made based on them.
2. Second-Order Thinking - Instead of thinking about the immediate consequences, think about the second-level consequences.
3. Inversion - Look at the problem at hand from the endpoint instead of the starting point.
Don't ask: "What do I need to do?"
Ask: "What must I avoid?"
4. Opportunity Costs - Think about the costs that arise because you decide in favor of one option and thus against every other option.
5. Randomness - Keep in mind that there aren't always cause-effect relationships.
Lots of stuff is random.
6. Leverage - “Give me a lever long enough and I shall move the world.” - Archimedes
7. Margin of Safety - Assume that your assumptions can be wrong and plan with a safety margin.
8. Occam's Razor - Always choose the less complex explanation/option.
"Never multiply unnecessarily."
9. Law of Diminishing Returns - Up to a certain point, additional units offer more value.
But there's a turning point where additional units offer less and less value and costs rise.
10. Niches - Specializing is an effective way to success. Use it and choose a niche where you become an expert.
What Mental Model helps you the most?
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