Episode 367： How to Make Tough Decisions
Episode Stats
Words per Minute
233.67038
Summary
In this episode, Value Tim talks about how to make tough decisions in life and how to deal with the consequences of making tough decisions. He uses the Prisoner's Dilemma as an example of how to solve the tough decision.
Transcript
00:00:00.000
30 seconds, one time for the underdog, ignition sequence start, let me see you put em up, reach the sky, touch the stars up above, cause it's one time for the underdog, one time for the underdog.
00:00:17.360
I'm Patrick with your host of Value Tim and today we're going to talk about you making tough decisions.
00:00:21.220
Yes, some of us get stuck making the tough decisions because we don't know if we're making the right decision.
00:00:26.240
I'm going to give you a system today on how to make those tough decisions that you've been setting aside for a long time.
00:00:31.100
Point number one on making tough decisions is game theory.
00:00:34.740
Let me explain to you what game theory means and what that has to do with you and I making tough decisions.
00:00:38.440
So John Nash, a famous mathematician, a story that's a very unique story.
00:00:42.900
Matter of fact, a movie was made about him called A Beautiful Mind.
00:00:47.600
You know that one scene he's working with all these numbers and data on the wall?
00:00:52.180
He came out with Game Theory and Game Theory is a system to help you and I make decisions with the biggest odds being in our favor.
00:01:01.500
This whole concept is simplified in a story of Prisoner's Dilemma.
00:01:06.980
If you haven't, this kind of helps you understand the whole decision.
00:01:17.600
If we rob the bank, I have a plan we're going to get $2 million.
00:01:32.800
So while you're about to rob this bank and go away with $2 million, you get caught.
00:01:38.320
Your last chance with Bobby, you're talking to him and say,
00:01:43.700
Now, you're not best friends, but these are just somebody you're going to go rob money with.
00:02:03.080
And let me explain to you why you may want to consider snitching on him before he snitches on you.
00:02:08.160
In your mind, you're saying this because there's no way Bobby's snitching on you.
00:02:12.040
John, you're probably thinking about not snitching.
00:02:13.860
But let me explain to you how this is going to work.
00:02:15.660
If you don't snitch and Bobby doesn't snitch, you get two years, he gets two years.
00:02:24.680
And if he doesn't snitch, you get zero years, he gets 10 years.
00:02:29.440
But if you snitch and he snitches, both of you get five years.
00:02:40.540
If he gets the same exact offer, what's Bobby going to do?
00:02:43.940
So you have to ask yourself, he's most likely going to snitch on me.
00:02:49.620
And whatever decision you make, then you have to live with the consequences.
00:02:54.920
Because if you don't snitch, you're going to take the risk for two or 10.
00:03:02.080
So what does that have to do with making tough choices?
00:03:11.260
I am going to sit there and say, if I punch you in the face, the consequences are you're
00:03:16.880
And so if you punch me back, my reaction is what?
00:03:20.600
And if I run away, how long do I have to run away?
00:03:23.600
If I fight, maybe I beat you and you're like, I'm tougher than you so we no longer fight
00:03:29.800
So in life, whatever decision you're getting ready to make, you want to marry, you want to
00:03:34.380
go out and raise money, you want to go invest, you want to go be a businessman, you want
00:03:39.320
You have to go to that position of asking yourself, if I take action, what are the consequences?
00:03:45.940
And the consequences I get, how do I respond and react to these consequences?
00:03:50.620
And then for the rest of your career, it's the same exact thing.
00:03:53.420
Constantly have to repeat this entire thing over and over and over again.
00:04:00.300
Let me explain to you what worst case scenario is.
00:04:01.940
So many, many years ago, I read a book called How to Stop Worrying and Start Living by Dale
00:04:07.400
In the book, he talks about when you make a decision, you have to take yourself to the
00:04:14.540
Meaning, if I decide to have kids, what is the worst thing that could happen to me?
00:04:22.740
If I decide to get married and it doesn't work out, what's the worst thing that can happen
00:04:29.200
If I decide to join the army, what's the worst thing that can happen to me?
00:04:36.340
What's the worst thing that can happen to me if I invest into this company?
00:04:40.340
You could go out of business, you could lose a million dollars.
00:04:43.140
What's the worst thing that's going to happen to me if I start a business and I jeopardize
00:04:49.560
Or you go out of business, you lose $600,000 of savings, can you live with that?
00:04:53.700
So the whole worst case scenario you got to do is, whatever decision you're getting ready
00:04:56.940
to make, that's a tough decision, ask yourself, what's the worst thing that can happen?
00:05:01.280
If the answer is yes, make the decision, move on, because that's what you're living with.
00:05:05.520
That's the worst thing that's going to happen, because anything above that is gravy.
00:05:11.060
So that mentally you have to get yourself ready, so if it ever happens to you, you're not surprised.
00:05:15.500
Point number three is very simple and it's actually very quick.
00:05:17.500
If the decision doesn't match your values and principles, move on.
00:05:21.480
Meaning, you're going to have a lot of different opportunities in your life.
00:05:23.820
And when I say opportunities, I'm not just talking about money and making millions.
00:05:27.000
I'm talking about different relationships, people that enter in your life.
00:05:30.560
If an opportunity comes your way, and it's very attractive, but it doesn't match your values
00:05:35.980
and principles that you live by, don't even think twice about it.
00:05:40.040
That headache, and you sleeping on a hard pillow at night, is not worthy of you making that
00:05:46.660
decision, because then your mind is being consumed of something you did that doesn't
00:05:52.040
The moment you're unaligned, you're not fulfilled, and you won't enjoy yourself while you're doing
00:05:58.220
Decision doesn't match your values and principles.
00:06:05.300
So just today, I had a very, very successful entrepreneur came over here, he and his wife,
00:06:11.780
And we meet every quarter or so, and we go through their plans and the next few tough decisions
00:06:17.900
And a lot of these decisions they had to make were personal, and we went through it.
00:06:21.880
And the one thing I always say when you go get counsel for somebody, make sure you get
00:06:26.220
somebody that is as neutral as possible about the decision.
00:06:29.700
Meaning, say your marriage is not working out, and you're saying, I'm done.
00:06:33.980
If you go talk to somebody that doesn't support marriage, you already know what they're going
00:06:39.180
If you go talk to somebody that's single, they're probably going to recommend you to
00:06:43.260
If you go talk to somebody that's very reasonable, they've been married before, and it's worked
00:06:48.220
out, and they had a close call of them also not wanting to do it, then you may have somebody
00:06:53.900
But the number one factor I look for when I'm asking counsel from somebody is being absolutely
00:06:59.000
reasonable to be able to process a decision in a reasonable fashion.
00:07:05.360
If you can find somebody like that to take counsel from, you're going to make so many
00:07:09.600
better choices, especially the tough ones, because they may give you an angle you're
00:07:17.020
Let me try this before I make this final decision to cut this, or leave this, or do this, or do
00:07:23.980
I would say it'll help you by 90% make much better decisions in your lifetime.
00:07:27.700
So point number five is what is your alternative?
00:07:29.480
And let me explain to you what I mean by what's your alternative.
00:07:31.880
So you're getting close to making a tough decision, right?
00:07:34.320
And you're kind of like, you're a little bit hesitant about it.
00:07:38.420
Sometimes all you've got to do is grab a paper and pen and say, okay, what's my alternative?
00:07:41.280
If I decide not to do this, what is my alternative?
00:07:44.000
You know, I don't know if I'm ready to buy this house or not, and it's a million eight,
00:07:48.080
and I don't know if I want to buy it, and we're going to have to put $450,000 of down payment.
00:07:53.720
And you sit down and say, you know, I do, I kind of like this more.
00:07:57.780
When you look at a business you're about to do, and you're going to work with somebody,
00:08:04.600
Because sometimes you'll have alternatives, and the alternative is going to make you even
00:08:07.880
be more confident about the decision that you're getting ready to make.
00:08:11.240
But simple, tough of the decision, see if you have alternatives, and then try to pick
00:08:15.660
the best decision you have amongst the alternatives.
00:08:22.680
So anytime I'm making a big decision, I never make the big decision when I'm fatigued for
00:08:30.260
For example, they would say a lot of times, say, if you can go to somebody and get them
00:08:34.520
to buy late at night because they're tired, and they just kind of want to get ready and
00:08:37.580
say, yes, it's easier to sell somebody because they're so tired, right?
00:08:40.880
Car salesmen, they had this idea 20 years ago, the longer we keep the customer there for
00:08:45.780
three hours, they're going to buy because they fatigue.
00:08:47.640
So they finally say, oh, let's just do it, forget about it.
00:08:50.840
Fatigue is a method of selling, but you don't want to use fatigue in a method of you making
00:08:55.820
The moment you get to it and you're like, I think I'm getting fatigued, I don't think
00:09:03.860
Never make a massive decision when you're fatiguing.
00:09:07.200
Always make a massive decision when you're all there, you're rested, you're strong,
00:09:14.600
I'm not ready to make this decision right now, we're passing on this.
00:09:18.960
While you're making a big decision, are you fatigued?
00:09:20.680
If you are, sleep for a night and then think about it tomorrow.
00:09:23.200
And last but not least, point number seven is once you make the decision, don't go back
00:09:28.700
Too often people make decisions and they're like, I shouldn't have made the decision.
00:09:35.660
The more you go there, you actually get demotivated and you become bitter and you're not happy and
00:09:40.940
you don't perform well and your business takes it, so let me explain.
00:09:44.240
We had a meeting the other day with our executives and I said, listen guys, too often we hire
00:09:53.800
I said, too often we hire way too fast and we fire way too slow, which we need to hire
00:09:58.360
slow with more options and fire fast if we know it's not going to work.
00:10:03.780
Why are we moving so quickly on the beginning decision?
00:10:07.800
So a big decision, a big decision that you have, the process is going to be slower, but
00:10:19.740
I have made so many decisions in my career, buying, investing, selling, hiring, firing,
00:10:27.260
cutting a relationship, starting a relationship.
00:10:29.240
So many have worked, so many have not worked, but to sit there and relive it and go through
00:10:33.980
it and say, oh my goodness, I made a big mistake.
00:10:36.300
Every time I've gone that road, it's never served me well.
00:10:38.660
So for you, once you make a decision, don't go back on it again.
00:10:42.100
Thanks everybody for listening and by the way, if you haven't already subscribed to
00:10:48.040
Give us a five star, write a review if you haven't already and if you have any questions for
00:10:52.260
me that you may have, you can always find me on Snapchat, Instagram, Facebook or YouTube.
00:10:56.840
Just search my name, Patrick MidDavid and I actually do respond back when you snap me