Five Mental Models Worth Knowing

What are the mental models?

Mental Models are mindsets to help you make difficult and complicated decisions.

Why I decided to write about it

I decided to write about mental models because there are many decisions that people have to take in their lives, and it can be hard to make those decisions. Mental Models can be a handy tool to have with you when making choices and can help you make the right one.

What are some Mental Models?

Inversion

Inversion is a mental model that helps people answer difficult questions and make wise decisions. Like how do I become happy? And what do I want to do in the future? The way that inversion works is that it looks at the inverse or the opposite side. For example, for the question: How do I become happy? You would look at how you would become depressed. You would become depressed by not having enough sleep, nutrition, and by being isolated from your friends. This way, you can look at the opposite of these and deduce how you would become happy.

“Invert, always invert: Turn a situation or problem upside down. Look at it backward. What happens if all our plans go wrong? Where don’t we want to go, and how do you get there? Instead of looking for success, make a list of how to fail instead.”

— Charlie Munger

Occam’s Razor

Occam’s Razor is a mental model that says the simpler solution or answer is usually the correct one. One example of this is about two physicists — Lorentz and Einstein. Both concluded that as you reach the speed of light, time slows down. Both came to the same conclusion with their equation but had different explanations for it. Lorentz said that it was because of changes that take place in the “the ether.” In science, there was no proof that “the ether” existed. Einstein’s explanation contained no references to “the ether.” Therefore, Einstein’s explanation won. There are many examples that Occam’s Razor can be used in. If you came home and found a broken glass vase, would you think it was because a burglar broke into your home, stole nothing, and broke a vase or because your cat bumped into it? I am not saying that Occam’s Razor is the best mental model to use in every situation, but it can be used in a few.

First Principles Thinking

First-principles thinking is a very popular way of thinking/mental model and is an approach that has been used by many great thinkers from Thomas Edison to Elon Musk. Well, why is it so popular, and how does it help people? The way that first principles thinking works is that you first identify the problem or decision you have to make. This can be anything from buying a house to how to study for a math test. After you identify the problem or decision, break everything down to the fundamentals principles, dig deeper than most people do. The last step is to use those fundamentals to create a solution or answer to your problem. One quick example from Elon Musk during an interview with Kevin Rose is when he said that battery packs are costly, at $600 per kilowatt-hour. He thought about a battery and what makes up a battery. In the end, it is just a few materials like cobalt, nickel, aluminum, carbon, and some polymers. He thought how much it would cost if you bought all these materials and put them together. It turns about to be $80 per kilowatt-hour. This is a perfect example showing how the first principles thinking mental model can be a useful mental model.

Lateral Thinking

Lateral thinking is an approach that is contrary to the first principles thinking mental model. Instead of looking at the facts and breaking them down, in lateral thinking, you pay less attention to the facts and think creatively or “out of the box” Lateral thinking enables you to think creatively and find hidden solutions you would have never discovered with a more straightforward approach. Lateral thinking can be useful in many situations where facts or data are not clear, and logical reasoning can not be applied.

10–10–10 Rule

What is the 10–10–10 rule? The 10–10–10 rule is a mental model that lets you think about the consequences or benefits of the decision you are making. It stands for how you will feel in 10 minutes, 10 months, and 10 years about your choice. One example of this is when buying something expensive. You will be filled with joy for the first 10 minutes. After 10 months, you will remember the good memories and wonder if you should have bought it. After 10 years, you will realize that the money you spent could have been spent on something much more important. This example shows the consequences of buying something expensive. Another example is when investing in stocks. Let’s say you invest $1000 in the Amazon stock. 10 minutes after you buy it, it goes down to $975, and you begin to regret your decision but keep the money in the stock market to see how everything plays out. After 10 months, your $1000 has become $1750, and you feel pretty happy. After 10 years, your $1000 becomes $5000. This example shows the benefits of investing in stocks. These examples show how it can be beneficial for you to think about your decisions' short and long-term implications.

More about Mental Models

These mental models demonstrate how they can be useful in decision making. Keep in mind that these are not the only mental models, and not all of these can be applied in every decision you make. Making decisions is one of the essential things we do. We make many choices every day, and these mental models can help you make the right ones.