The World's Best Book Summaries
What is interleaving? How can it help you learn? Introducing variety into your studies helps you leverage your brain’s information storage processes. Interleaving is an effective way to diversify your studies. It’s basically using an assortment of problem-solving techniques rather than sticking with the same one all of the time. Keep reading to learn more about interleaving and how it can boost your learning.
What’s the traditional formula for wealth? Does the formula work? What uncontrollable factors doesn’t it account for? In The Millionaire Fastlane, multimillionaire entrepreneur and investor MJ DeMarco challenges conventional wisdom about how to create wealth. He says that the traditional formula for wealth—getting a stable job and investing—may work, but it’s not necessarily going to make you happy. Here’s why you should re-think your financial plan.
What does it mean to have a survival mentality around money? What three ideas around money should you develop? In his book The Psychology of Money, Morgan Housel suggests developing a survival mentality around money. This means accepting that you could lose all your money at any time, so you follow certain steps to ensure you protect your assets. Here are the three steps for developing a survival mindset.
Where does news come from? Who are the sources that provide the content? In their book Manufacturing Consent, Chomsky and Herman explain that the most common sources for the news are political and economic figures. This means that these elites can control what makes it to the news and what is suppressed. Here’s how the elites shape what the general public sees.
What is hindsight bias? Why does the predictability of the outcome seem higher in hindsight? Hindsight bias is where you—upon knowing the outcome of an event—overestimate your ability to have predicted it. According to Rolf Dobelli, the author of The Art of Thinking Clearly, hindsight bias is a by-product of the brain’s pattern-finding tendencies. Here’s why things seem clearer in hindsight.
What is sampling distribution? What are some of the pitfalls in working with mathematical averages in math? A sampling distribution is one of the complex math concepts many people don’t instinctively understand. The sampling distribution (or the distribution of the average) is important because averages are misleading: Your brain focuses on the average and doesn’t consider possible outliers in the distribution. Keep reading to understand sampling distribution, explained in simple terms.
What is social loafing? Why do people tend to lessen their effort when added to a group? Social loading is a psychosocial phenomenon whereby individuals put less effort in when they become part of a group. According to Rolf Dobelli, the author of The Art of Thinking Clearly, social loafing is a feature of groups, not a drawback: Early humans formed groups because the responsibility for survival was spread out rather than concentrated on each individual. Keep reading for the social loafing definition, how it forms, and how to prevent it.
Why do people play mind games? How can you tell that someone is playing a mind game on you? In his 1964 classic Games People Play, Dr. Eric Berne theorizes that playing mind games is a part of psychological development that all people must grow past. He divided the mind games into seven different categories: 1) pseudo-small talk, 2) couples games, 3) sex games, 4) career games, 5) criminal games, 6) therapy games, and 7) positive games. Let’s take a look at Berne’s categories of psychological mind games people play on each other.
What is the Zeigarnik effect? Why do we tend to forget projects we are done with? In psychology, the Zeigarnik effect is the tendency to recall unfinished or interrupted tasks more easily than tasks that haven’t yet been completed. According to Rolf Dobelli, the author of The Art of Thinking Clearly, the brain does this for efficiency—once the task is complete, it deems it unimportant and discards it to free up mental space. Keep reading to learn about the Zeigarnik effect, why it happens, and how to overcome it.
Do you want to put together a long-term financial plan? Why should you be sensible, rather than logical, when planning for the future? To be logical is to make a decision based on known facts, while to be sensible is to show sound judgment. They are similar, but they are not the same. In his book The Psychology of Money, Morgan Housel suggests making sensible decisions when making a long-term financial plan because it will put your mind at peace. Here’s how to create a feasible financial strategy, according to behavioral finance expert Morgan Housel.