Everything in Life Has an Opportunity Cost

“Opportunity cost is a huge filter in life. If you’ve got two suitors who are really eager to have you and one is way the hell better than the other, you do not have to spend much time with the other. And that’s the way we filter out buying opportunities.”
Charlie Munger, Investor

Everything in Life Has an Opportunity Cost

Doing One Thing Makes You Sacrifice the Opportunity to Do Something Else of Value

In economics, opportunity cost is the cost of not choosing the next best alternative for your money, time, or some other resource.

One of the foundational principles in economics is affirmed by the popular American aphorism, “There ain’t no such thing as a free lunch.” Resources are scarce. When resources (time, money, mindshare, autonomy, and all that) are scarce, selecting one opportunity necessitates forgoing other opportunities.

Life is all about values and priorities. You face trade-offs. Life requires of you to make choices among mutually exclusive alternatives. Every time you select something, you forfeit other alternatives and the concomitant benefits. The cost of something is what you will give up to get it. This is opportunity cost.

You Can Do Anything but Not Everything … What Will You Sacrifice When You Choose One Option Over the Others?

When mulling over multiple choices, the quality of any option cannot be assessed in isolation from its alternatives. The price you pay (or the sacrifice you make, or the benefits you give up) for doing what you’ve chosen to do instead of doing something else is the opportunity cost.

In sum, an opportunity cost is the cost of passing up the opportunities that a different option would have afforded.

Many costs are calculated in terms of money. However, just because you don’t have to spend money to do something does not imply that the options you face are without their costs. For example, you don’t have to spend money to go for a hike or watch a sunset, but there is an opportunity cost there too. You could have used that time to do something else you value—visiting a friend or reading a book, perhaps.

  • If you decide to invest two years and some $100,000 getting an MBA at a brand-name business school, there’s an opportunity cost; it costs you lost wages and all the things you could have pursued during that time and with that money. But you anticipate that getting your MBA will pay off by way of a better job in a better company with a better salary.
  • If you spend your weeklong vacation taking your parents to a beach destination in Florida, there’s the opportunity cost of not going to Paris with your spouse.
  • Opportunity Costs Apply to All Your Choices If you decide to wake up twenty minutes earlier in the mornings to leave home sooner to work and beat the horrendous traffic, there’s the opportunity cost of twenty minutes of extra snoozing.
  • When the refrigerator at home breaks down and needs replacement, you will have to give up buying that latest big-screen TV you’ve been coveting.
  • There’s an opportunity cost to even reading this article at this moment. You could have been watching TV, taking a nap, calling up a friend, or moving on to another article in the time you’re devoting to reading this article.

In a nutshell, even decisions that appear to be no-brainers carry the hidden costs of the options you will decline. Thinking about opportunity costs may not change the decision you make, but it will give you a more rational assessment of the full implications of your decision.

Opportunity Costs Apply to All Your Choices—Big and Small

Opportunity cost is a concept of great magnitude. It is one of those apparently simple concepts in social sciences that are difficult to master and tough to put into consistent practice. Tim Harford, the British author of The Undercover Economist offers a particularly instructive example of appreciating opportunity costs in his Financial Times column:

Consider the following puzzle, a variant of which was set by Paul J Ferraro and Laura O Taylor to economists at a major academic conference back in 2005. Imagine that you have a free ticket (which you cannot resell) to see Radiohead performing. But, by a staggering coincidence, you could also go to see Lady Gaga—there are tickets on sale for £40. You’d be willing to pay £50 to see Lady Gaga on any given night, and her concert is the best alternative to seeing Radiohead. Assume there are no other costs of seeing either gig. What is the opportunity cost of seeing Radiohead? (a) £0, (b) £10, (c) £40 or (d) £50.

Answer: Going to see Lady Gaga would cost £40 but you’re willing to pay £50 any time to see her; therefore the net benefit of seeing Gaga is £10. If you use your free Radiohead ticket instead, you’re giving up that benefit, so the opportunity cost of seeing Radiohead is £10.

Learn to Evaluate Life Choices Via the Lens of Opportunity Costs—The Stakes Become Clearer

Evaluate Life Choices Via the Lens of Opportunity Costs You live in a world of scarcity and must therefore make choices. You cannot avoid regret since there are opportunity costs for every choice you will make.

Everything in life is about opportunity costs. Every time you say “yes” to a choice, you are also saying “no” to everything else you may have accomplished with your time, money, and resources.

Opportunity cost is a commanding tool that you should be wise to apply to all decision-making. If you integrate this concept into your thought process, you will not only make judicious choices, but also better understand the world in which you live.

Idea for Impact: Whether you’re choosing graduate school, mulling over switching careers, starting a business, investing your money, buying a car, or frittering away your evening watching TV, considering the value of forgone alternatives will help you make better choices. Make the lens of opportunity costs the underpinning of your decision-making processes.

Death Should Not Be Feared

The Flickering Flame of Consciousness Will Go Out One Day

A friend was recently racked with melancholy: in the last few weeks, five of his family members and friends were diagnosed with debilitating diseases or cancer. This followed the passing away of a dear friend earlier this year. Like everybody else, facing the decline and death of the near and dear compelled my friend to contemplate life and confront his own mortality.

Convention can bind us to the notion that death is frightful and should not be talked about. However, death needs to be discussed—and contemplated—all the time, not in terms of the fear of life but as a reminder of the brevity of life. The great English author Graham Greene (1904-91) wrote in the novel Travels With My Aunt (1972,)

You will think how every day you are getting a little closer to death. It will stand there as close as the bedroom wall. And you’ll become more and more afraid of the wall because nothing can prevent you coming nearer and nearer to it ever night while you try to sleep…

Death Should Not Be Feared; It’s an Essential Progression of Life

When we’re forced to confront death, we resist doing so. Death is a very natural phenomenon just like birth, and there’s no need to shy away from it. In his famous 2005 Stanford graduation address, Steve Jobs (1955-2011) addressed his pancreatic cancer and his brush with death:

No one wants to die. Even people who want to go to heaven don’t want to die to get there. And yet death is the destination we all share. No one has ever escaped it. And that is as it should be, because death is very likely the single best invention of Life. It is Life’s change agent. It clears out the old to make way for the new. Right now the new is you, but someday not too long from now, you will gradually become the old and be cleared away. Sorry to be so dramatic, but it is quite true.

Accept the impermanence of health and life. Appreciate and live each moment wisely.

Bertrand Russell’s Evocative Reflection on Transience and Morality

The celebrated British mathematician, political activist, and philosopher Bertrand Russell (1872—1970) wrote a beautiful reflection on death and life in his essay “How To Grow Old.” The metaphors evoked by the way that Russell portrayed human existence “like a river” are overpowering.

The best way to overcome it [the fear of death]—so at least it seems to me—is to make your interests gradually wider and more impersonal, until bit by bit the walls of the ego recede, and your life becomes increasingly merged in the universal life. An individual human existence should be like a river: small at first, narrowly contained within its banks, and rushing passionately past rocks and over waterfalls. Gradually the river grows wider, the banks recede, the waters flow more quietly, and in the end, without any visible break, they become merged in the sea, and painlessly lose their individual being. The man who, in old age, can see his life in this way, will not suffer from the fear of death, since the things he cares for will continue. And if, with the decay of vitality, weariness increases, the thought of rest will not be unwelcome. I should wish to die while still at work, knowing that others will carry on what I can no longer do and content in the thought that what was possible has been done.

Idea for Impact: The Only Thing We Really Get to Influence About Death is the Course of Our Approach to Death

We may look at death and decline with fear instead of anticipation, but the alternative to death could truly be worse: boredom and stagnation.

Fortunately, though death and decline may be unavoidable, how we look at it is totally up to us.

Every brush with death and serious illness should remind you to accept the impermanence of health and life. It should help you appreciate and live each moment wisely. It should serve to remind you to cherish everything with you while you have them.

Become a Smart, Restrained Communicator Like Benjamin Franklin

Benjamin Franklin, America’s founding father, statesman, and polymath, was a doyen of the self-improvement movement. His methods for self-mastery are worth taking a serious look at if you’re interested in getting better at anything in life.

In his wonderful Autobiography (1791,) Franklin discusses his once-foolish delight in spinning artful arguments and doggedly winning over his opponents.

Winning an Argument Aggressively is but a Short-term Ego Victory

'The Autobiography of Benjamin Franklin' by Benjamin Franklin (ISBN 1492720941) As a young man, Franklin had a habit of fervently arguing his case in all matters and alienating people around him. He frequently ensnared his challengers with hard-hitting rhetoric:

I found this method safest for myself and very embarrassing to those against whom I used it; therefore I took a delight in it, practis’d it continually, and grew very artful and expert in drawing people, even of superior knowledge, into concessions, the consequences of which they did not foresee, entangling them in difficulties out of which they could not extricate themselves, and so obtaining victories that neither myself nor my cause always deserved.

However, Franklin ultimately recognized that his take-no-prisoners approach of arguing was by no means endearing him to other people. His realized that his brash way of outwitting his challengers had been self-defeating.

Benjamin Franklin, Doyen of the Self-improvement Movement

Arguing, if it is to Be Constructive, Must Be Done Tactfully

In an attempt to develop amenable character traits, Franklin radically improved the way he interacted with others. He let go of all expressions of conceit and bold self-confidence. He stopped using words such as “certainly” and “undoubtedly” in his speaking and replaced them with phrases that signified personal opinions—for instance, “It appears to me, or I should think it so or so for such & such Reasons, or I imagine it to be so, or it is so if I am not mistaken.”

I continu’d this method some few years, but gradually left it, retaining only the habit of expressing myself in terms of modest diffidence; never using, when I advanced any thing that may possibly be disputed, the words certainly, undoubtedly, or any others that give the air of positiveness to an opinion; but rather say, I conceive or apprehend a thing to be so and so; it appears to me, or I should think it so or so, for such and such reasons; or I imagine it to be so; or it is so, if I am not mistaken. This habit, I believe, has been of great advantage to me when I have had occasion to inculcate my opinions, and persuade men into measures that I have been from time to time engag’d in promoting; and, as the chief ends of conversation are to inform or to be informed, to please or to persuade, I wish well-meaning, sensible men would not lessen their power of doing good by a positive, assuming manner, that seldom fails to disgust, tends to create opposition, and to defeat every one of those purposes for which speech was given to us, to wit, giving or receiving information or pleasure. For, if you would inform, a positive and dogmatical manner in advancing your sentiments may provoke contradiction and prevent a candid attention. If you wish information and improvement from the knowledge of others, and yet at the same time express yourself as firmly fix’d in your present opinions, modest, sensible men, who do not love disputation, will probably leave you undisturbed in the possession of your error. And by such a manner, you can seldom hope to recommend yourself in pleasing your hearers, or to persuade those whose concurrence you desire. [Alexander] Pope says, judiciously:

“Men should be taught as if you taught them not,
And things unknown propos’d as things forgot;”

farther recommending to us

“To speak, tho’ sure, with seeming diffidence.”

Learn to Resolve Important Issues through Sensible Discourse

'How to Win Friends & Influence People' by Dale Carnegie (ISBN 0671027034) Franklin realized that this measured conversation and gentler interactions was helpful in preventing conflicts and softening resistance in those he wanted to influence. He writes, “This Habit, I believe, has been of great Advantage to life, when I have had occasion to inculcate my Opinions & persuade Men into Measures I have been from time to time engag’d in promoting.”

This rule of skilful conversation and interpersonal relationships later became one of the foundational principles in Dale Carnegie‘s masterful self-help manual How to Win Friends and Influence People—specifically, that our ticket to success in life is the ability to make others feel good about themselves.

Persuasion is Not About Outmaneuvering Others and Proving Them Wrong

The ability to communicate effectively, plead your case, and influence others is one of the most useful skills for succeeding in the modern world.

  • Learn to resolve important issues through sensible and mindful discourse.
  • Be assertive where you must, but never aggressive.
  • Be open-minded, understand the other person’s perspective, and keep your emotions under control.
  • Never insult, disgrace, or cause the other person to lose face.

Views, opinions, and judgments can differ, and these can and should be discussed civilly. However, to debate such differences vigorously so as to cause bad feelings toward is not necessary and is almost always counterproductive.

Idea for Impact: Arguing for the sake of deciding a winner is never constructive. When an argument starts, persuasion stops.

Let Go of Sunk Costs

When people put their weight behind an idea or a belief, they become invested in it. They are likely to fight its corner rather than discard that idea or renounce their prior decision.

This tendency to throw good resources after bad, rather than cut losses, is the Sunk Cost Fallacy.

Quitting is Not Always Wrong

'Thinking, Fast and Slow' by Daniel Kahneman (ISBN 0374275637) People frequently become stuck with poor decisions that they keep holding on to in hopes that they will eventually prove their efforts worthwhile. Here’s Nobel laureate in economics Daniel Kahneman (author of Thinking, Fast and Slow, the bestselling exposition of human irrationality) in an interview with financial journalist Morgan Housel:

When I work I have no sunk costs. I like changing my mind. Some people really don’t like it but for me changing my mind is a thrill. It’s an indication that I’m learning something. So I have no sunk costs in the sense that I can walk away from an idea that I’ve worked on for a year if I can see a better idea. It’s a good attitude for a researcher. The main trap that young researchers fall into is sunk costs. They get to work on a project that doesn’t work and that is not promising but they keep at it. I think too much persistence can be bad for you in the intellectual world.

Don’t Become Biased Against Quitting

Sunk cost fallacy, also called the Concorde Effect Sunk cost fallacy is why people who have already wasted money on tickets to an awful movie continue to watch it to the end and waste their time instead of walking out of the cinema hall. It’s the urge to justify previous decisions using the next one—for example, when people force themselves to munch their way through an unsavory meal at a restaurant or when people waste time in dead-end romantic relationships because they’ve already devoted so much time to the relationships and irrationally hope things will improve someway.

Some leaders continue a project once an initial investment is made and found flawed because stopping the project would be tantamount to conceding that previously-allocated resources have been wasted. For this reason, the sunk cost fallacy is also called the ‘Concorde Effect’ after the Anglo-French supersonic jet. In the ’60s, even though there was never a sufficient demand from airlines for the Concorde, the British and French governments continued to subsidize the development and production of the Concorde instead of admitting that they had wasted billions on a non-viable undertaking. The airline industry had long understood that the economics of supersonic transport were dubious, which had forced Americans to abandon their preliminary studies of supersonic jets.

Idea for Impact: Let to Cut Your Losses When Something’s Not Working

Sunk cost fallacy - Know How to Cut Your Losses When Something's Not Working Sunk costs are backward-looking decisions. Don’t become excessively focused on a specific goal or outcome—you’ll become inflexible and unyielding. You’ll narrow your options and make yourself feel more limited and inhibited.

Don’t get attached to ideas and become affected by the sunk cost fallacy as your projects develop. Remain objective, identify the warning signs of losing propositions, and abandon lost causes where sensible. As the American cartoonist Charles Schulz of Peanuts fame once said, “No problem is so formidable that you cannot walk away from it.”

The More You Can Manage Your Emotions, the More Effective You’ll Be

The More You Can Manage Your Emotions, the More Effective You'll Be

Understanding the deep-rooted basis of our negative emotions and their destructive consequences can help us navigate the turmoil that sorrow, love, anger, greed, envy, pride, and fear can invoke in our lives.

American Philosopher William James on Emotions The pioneering American psychologist William James argued in his famous 1884 essay “What is an Emotion?” that emotions and their effects on our attitudes and our behaviors is bidirectional. That is to say, “bodily disturbances” are manifestations of our emotions and those reverberations are really the fount of the emotions themselves.

Our natural way of thinking about these standard emotions is that the mental perception of some fact excites the mental affection called the emotion, and that this latter state of mind gives rise to the bodily expression. My thesis on the contrary is that the bodily changes follow directly the PERCEPTION of the exciting fact, and that our feeling of the same changes as they occur IS the emotion. Common sense says, we lose our fortune, are sorry and weep; we meet a bear, are frightened and run; we are insulted by a rival, are angry and strike. The hypothesis here to be defended says that this order of sequence is incorrect, that the one mental state is not immediately induced by the other, that the bodily manifestations must first be interposed between, and that the more rational statement is that we feel sorry because we cry, angry because we strike, afraid because we tremble, and not that we cry, strike, or tremble, because we are sorry, angry, or fearful, as the case may be. Without the bodily states following on the perception, the latter would be purely cognitive in form, pale, colourless, destitute of emotional warmth. We might then see the bear, and judge it best to run, receive the insult and deem it right to strike, but we could not actually feel afraid or angry.

“Geological Upheavals of Thought”

American Philosopher Martha Nussbaum on Upheavals of Thought I’ve been reading American philosopher Martha Nussbaum‘s outstanding—albeit demanding—book Upheavals of Thought: The Intelligence of Emotions. The initial chapters contemplate the power of emotions and the manifestation of emotions in all aspects of our thought stream.

One of the central positions of Nussbaum’s book is that our sentiments and emotions spring from internal narratives—the stories we ponder within ourselves about who we are and how we feel. Emotions are acknowledgments of our indigence and lack of self-reliance.

Emotions are not just the fuel that powers the psychological mechanism of a reasoning creature, they are parts, highly complex and messy parts, of this creature’s reasoning itself.

Emotions … involve judgments about important things, judgments in which, appraising an external object as salient for our own well-being, we acknowledge our own neediness and incompleteness before parts of the world that we do not fully control.

Emotions should be understood as “geological upheavals of thought”: as judgments in which people acknowledge the great importance, for their own flourishing, of things that they do not fully control—and acknowledge thereby their neediness before the world and its events.

Human beings … are the only emotional beings who wish not to be emotional, who wish to withhold these acknowledgments of neediness and to design for themselves a life in which these acknowledgments have no place. This means that they frequently learn to reject their own vulnerability and to suppress awareness of the attachments that entail it. We might also say … that they are the only animals for whom neediness is a source of shame, and who take pride in themselves to the extent to which they have allegedly gotten clear of vulnerability.

'Upheavals of Thought' by Martha Nussbaum (ISBN 0521462029) Nussbaum notes that our strong emotions stem from our intolerance and from the disruption to our internal narratives about what comprises perfection:

The emotions of the adult life sometimes feel as if they flood up out of nowhere, in ways that don’t match our present view of our objects or their value. This will be especially true of the person who maintains some kind of false self-defense, and who is in consequence out of touch with the emotions of neediness and dependence, or of anger and aggression, that characterize the true self.

Idea for Impact: People who lack the capacity to withstand psychological distresses such as anger, fear, frustration, and sadness are at a marked disadvantage in life. Learn to manage your negative emotions.

Learn to Manage Your Negative Emotions and Yourself

Negative emotions not only take their toll on our mind, body, and spirit, but also hinder your liberation from suffering, according to the Buddhist way of life.

People who lack the capacity to withstand psychological distresses such as anger, fear, frustration, and sadness are at a marked disadvantage in life. When faced with life’s unceasing challenges, they respond with greater emotional distress. Worse yet, rather than deal with the challenge at hand wisely, they engage in destructive behaviors, often with verbal and physical aggression toward themselves and others.

Swami Chinmayananda Saraswati on resilience and equanimity

There’s great strength in learning to divorce yourself from negative emotions

People with lower tolerance for distress usually spin their wheels and find as many escapes—including substance abuse and binging—as their troubled minds can conjure up. Instead of allowing themselves a modest amount of grieving, rebounding quickly, and moving on with their lives, they feel victimized. They avoid people and situations that may provoke frustration, discomfort, embarrassment, and uncertainty. In due course, their mind, body, and spirit start to atrophy.

Speaking of the need to expand the human capacity of resilience and equanimity and learn from adversity to achieve success, the renowned Hindu spiritual teacher Swami Chinmayananda Saraswati (1916–93) once said, “The secret of success behind all men of achievement, lies in the faculty of applying their intellect in all their activities, without being mislead by any surging emotions or feelings. The secret of success in life lies in keeping the head above the storms of the heart.”

Having a propensity to react negatively will hurt your career and personal life

When the celebrated American tennis player Andre Agassi (who was infamous for his temperaments) was asked in a Harvard Business Review interview if he learned to manage his emotions when he played, Agassi replied,

I’ve seen people use emotion, positive or negative, as a tool, and it works for them. But typically, the more you can remove emotion, the more efficient you’ll be. You can be an inch from winning but still miles away if you allow emotion to interfere with the last step. So you have to accept the weather, heat, rain, stops and starts, the line calls, whatever your opponent is giving you, however tired or injured you are. There are so many things that can distract you from taking care of business. The only thing you can control is your engagement.

Equanimity is thus at the center of Buddhist practice

When you learn to better understand, tolerate, and harness negative emotions, you become empowered.

Learn to manage your negative emotions and yourself. From Buddhist perspective, learn to thoughtfully attend to your negative emotions with an emphasis on neither suppressing them nor acting them out. According to verse 4.34 in Udāna, eighty stories that contain eighty utterances of the Buddha,

Whose mind is like rock, steady, unmoved,
dispassionate for things that spark passion,
unangered by things that spark anger:
When one’s mind is developed like this,
from where can there come suffering & stress?

Equanimity is thus at the center of Buddhist practice, which prescribes many forms of disciplined practices to overcoming the harmful effects of destructive emotions. According to the Therīgāthā (“verses of the female elders”,) a set of principles composed by senior nuns during the lifetime of the Buddha,

If your mind becomes firm like a rock
And no longer shakes
In a world where everything is shaking,
Your mind will be your greatest friend
And suffering will not come your way.

Idea for Impact: Negative emotions and the destructive behaviors they breed are essentially always wrong—they are psychological errors you’ll do well to eliminate in yourself.

How to Handle Conflict: Disagree and Commit [Lessons from Amazon & ‘The Bezos Way’]

How Amazon’s Jeff Bezos Propels Innovation

Entrepreneurial Lessons from Amazon Founder and CEO Jeff Bezos Amazon’s founder and CEO Jeff Bezos once remarked that it takes five to seven years before the innovation seeds that Amazon plants flourish enough to have a significant impact on the economics of the business.

Since its founding in 1994, Amazon has made endless investments in expanding its business models. It has successfully used its money-making ventures to bankroll explorations into peripheral lines of business. Many of its capital allocation decisions haven’t yielded strong profits; yet, Amazon has flourished beyond everyone’s expectations and its growth potential is undeniable.

Central to this innovation strategy has been Bezos and his leadership team’s foresight, early commitment, and stubborn confidence in the prospect of R&D. Under Bezos’s direction and long-term focus, Amazon still operates as a founder-driven start-up in several major areas.

Bezos has a compelling cultural influence and has institutionalized his distinctive entrepreneurial mindset across the company. His core values are codified as Amazon’s 14 Leadership Principles, one of which is “Have Backbone; Disagree and Commit”:

Leaders are obligated to respectfully challenge decisions when they disagree, even when doing so is uncomfortable or exhausting. Leaders have conviction and are tenacious. They do not compromise for the sake of social cohesion. Once a decision is determined, they commit wholly.

“Disagree and Commit”

Jeff Bezos’s latest short-but-compelling annual letter to his shareholders contains pearls of wisdom on leadership, management, and teamwork. Read the letter; it won’t take long.

Speaking about high-velocity decision making in an ingenious culture, Bezos says he encourages Amazon’s leaders and employees to use the phrase “disagree and commit” to disagree respectfully and experiment with ideas:

Use the phrase “disagree and commit.” This phrase will save a lot of time. If you have conviction on a particular direction even though there’s no consensus, it’s helpful to say, “Look, I know we disagree on this but will you gamble with me on it? Disagree and commit?” By the time you’re at this point, no one can know the answer for sure, and you’ll probably get a quick yes.

This isn’t one way. If you’re the boss, you should do this too. I disagree and commit all the time. We recently greenlit a particular Amazon Studios original. I told the team my view: debatable whether it would be interesting enough, complicated to produce, the business terms aren’t that good, and we have lots of other opportunities. They had a completely different opinion and wanted to go ahead. I wrote back right away with “I disagree and commit and hope it becomes the most watched thing we’ve ever made.” Consider how much slower this decision cycle would have been if the team had actually had to convince me rather than simply get my commitment.

Note what this example is not: it’s not me thinking to myself “well, these guys are wrong and missing the point, but this isn’t worth me chasing.” It’s a genuine disagreement of opinion, a candid expression of my view, a chance for the team to weigh my view, and a quick, sincere commitment to go their way. And given that this team has already brought home 11 Emmys, 6 Golden Globes, and 3 Oscars, I’m just glad they let me in the room at all!

Entrepreneurial Lessons from Amazon Founder and CEO Jeff Bezos: Disagree and Commit Bezos’s “fail-and-learn” refrain echoes what he wrote on risk-taking in Amazon’s first annual shareholder letter in 1997: “Given a 10 percent chance of a 100-times payout, you should take that bet every time … Failure and invention are inseparable twins. To invent you have to experiment, and if you know in advance that it’s going to work, it’s not an experiment.” That letter has become Amazon’s manifesto on the benefits and methods to long-term thinking and Bezos quotes that letter in every year’s annual letter.

To “disagree and commit” compels people to step out of their comfort zones and to sincerely commit to a project’s success. There is no room for sabotage and disruption—neither can people wait in the wings to exclaim “I told you so.” To “disagree and commit” is to be willing to take prudent risks by acknowledging that others may have diverse beliefs, approaches, ideas, and styles.

Idea for Impact: Embrace Failure because it Leads to Innovation

Many people want to be curious, creative, and experimental—they like to take initiative and investigate new products and solutions. But, when facing difficult choices, they’re naturally afraid of what they don’t know. Self-doubt sets in. They resort to safe and predictable processes. This mindset stifles the very inventive approach they want to apply and foster.

Fear of failure and self-doubt are not usually rooted in facts. They’re emotional. Don’t let this emotion make you play it safe. Don’t overthink your way out of challenges. Understand the types and amounts of risks that are acceptable to you. When facing the prospect of failure, you’re more likely to get unstuck by trying low-risk actions. Experiment. Fail. Learn. Innovate.

Success may instill confidence, but failure imparts wisdom.

The Gift of the Present Moment

People Tend to Live a Fantasy … They are Unable to Remain in the Present Moment

Most people tend to focus on things that aren’t happening right now. They get easily distracted. Through their bodies are present physically, their minds are elsewhere. They become easily absorbed in the past, get depressed, and compulsively pick over the past with the purpose of learning their lessons. Or else, they project themselves into a hypothetical future, get anxious, and worry about things that may never occur.

'Present Moment Wonderful Moment' by Thich Nhat Hanh (ISBN 1888375612) According to the renowned Vietnamese-French Zen Buddhist monk Thich Nhat Hanh (b.1926), life can be found only in the present moment. In his Present Moment, Wonderful Moment, a persistently insightful discourse on the Zen-Buddhist philosophy of dwelling in the present moment and living a meaningful life, Hanh writes,

When we are driving, we tend to think of arriving, and we sacrifice the journey for the sake of the arrival. But life is to be found in the present moment, not in the future. In fact, we may suffer more after we arrive at our destination. If we have to talk of a destination, what about our final destination, the graveyard? We do not want to go in the direction of death; we want to go in the direction of life. But where is life? Life can be found only in the present moment. Therefore, each mile we drive, each step we take, has to bring us to the present moment. This is the practice of mindfulness.

When we see a red light or a stop sign, we can smile at it and thank it, because it is a bodhisattva helping us to return to the present moment. The red light is a bell of mindfulness. We may have thought of it as an enemy, preventing us from achieving our goal. But now we know the red light is our friend, helping resist rushing and calling us to return to the present moment where we can meet with life, joy and peace.

The prominence on living the present moment is perhaps the defining characteristic of the Zen philosophy. This attitude tries to get you to understand that life exists only in the present, or nowhere at all. There’s no purpose in getting anywhere, if, when you get there, all you do is think about yet another future moment.

The Gift of the Present Moment

Reclaim and Expand the Present Moment

'Calming Your Anxious Mind' by Jeffrey Brantley (ISBN 1572244879) Life is only available in the present moment. The past is just a memory and the future is merely a projection. The American psychiatrist Jeffery Brantley writes about the importance of awakening to the present moment by way of discipline and deliberate practice in Calming Your Anxious Mind:

Everything happens in the present moment. It is in the present moment, the now, that you live. All of experience, whether it occurs inside your skin or outside your skin, is happening in this moment. In order to live more fully, to meet the stressors and challenges of life (including fear, panic, and anxiety) more effectively, and to embrace the wonder and awe of life more completely, it is fundamental that each of us learns to connect with and dwell in the present moment.

To teach yourself the art of attention and presence is both a difficult and beautiful undertaking. The habits of inattention and absence are strong, yet the experience of life, moment by moment, is precious.

Bear in Mind, Your Present Life-span is Only One Moment Long. So Live It Now.

'Fear Essential Wisdom' by Thich Nhat Hanh (ISBN 0062004727) In Fear: Essential Wisdom for Getting Through the Storm, Thich Nhat Hanh explains that mindfulness lets us become “aware of what is going on in the present moment—in our bodies, in our feelings, in our perceptions, in the world.” Hanh advocates grounding ourselves in the present moment via mindfulness meditation:

When we are not fully present, we are not really living. We’re not really there, either for our loved ones or for ourselves. If we’re not there, then where are we? We are running, running, running, even during our sleep. We run because we’re trying to escape from our fear.

We cannot enjoy life if we spend our time and energy worrying about what happened yesterday and what will happen tomorrow. If we’re afraid all the time, we miss out on the wonderful fact that we’re alive and can be happy right now. In everyday life, we tend to think that happiness is only possible in the future. We’re always looking for “right” conditions that we don’t yet have to make us happy. We ignore what is happening right in front of us. We look for something that will make us feel more solid, more safe, more secure. But we’re afraid all the time of what the future will bring—afraid we’ll lose our jobs, our possessions, the people around us whom we love. So we wait and hope for that magical moment—always sometime in the future—when everything will be as we want it to be. We forget that life is available only in the present moment. The Buddha said, “It is possible to live happily in the present moment. It is the only moment we have.”

Establish Yourself in the Present Moment

Idea for Impact: Whatever adverse happened or whatever bad looms, don’t let it spoil the present moment.

Learn how to pay attention to the present moment rather than getting tied up in negative thinking about the past or the future.

When you establish yourself in the present moment, you can live life and make the most of those stimulating, refreshing, and nourishing elements of life that are always within you and around you. As the American psychologist and yogic scholar Richard Miller said, “In the end, we realize how simple life is when we accept this moment, just as it is, without pretending to be other than who we are.”

Why Others’ Pride Annoys You

Hubristic Pride: Why Others' Pride Annoys You

The problem with pride is that it is tainted by a self-view of being better than others are.

Pride is an essential element of the human condition. Feeling good about yourself is indispensable for your emotional wellbeing.

However, pride can be the thin end of the wedge as regards your social behavior. A rigid self-affirmation can morph into an inflated opinion of the self and arrogance. This air of superiority causes a disrespectful attitude toward others. The British novelist, literary scholar, and poet C.S. Lewis (1898-1963) wrote, “Pride gets no pleasure out of having something, only out of having more of it than the next man.”

For this reason, philosophers throughout the ages have decried pride. Buddhism lists pride as one of the kleshas—detrimental mental states that can cloud the mind and result in “unwholesome” actions. Christianity considers pride as one of the seven deadly sins and declares that pride “doth go before the fall” (Proverbs 16:18.)

We’re easily annoyed by people who have an inflated view of their abilities and their wisdom.

Pride ... the more we have it ourselves, the more we dislike it in others--Quotation by C.S. Lewis Human tendency is such that, while you do not acknowledge pride in yourself, you are quick to recognize and condemn pride in others when they prickle you with their comments. In his famous work of Christian apologetics, Mere Christianity (1952,) C.S. Lewis attributes your annoyance towards others to your own pride:

There is one vice of which no man in the world is free; which everyone in the world loathes when he sees it in someone else’ and of which hardly any people … ever imagine that they are guilty themselves. I have heard people admit that they are bad tempered, or that they cannot keep their heads about girls or drink, or even that they are cowards. I do not think I have ever heard anyone who was not a Christian accuse himself of this vice. And at the same time I have very seldom met anyone, who was not a Christian, who showed the slightest mercy to it in others. There is no fault which makes a man more unpopular, and no fault which we are more unconscious of in ourselves. And the more we have it ourselves, the more we dislike it in others.

The vice I am talking of is Pride or Self-Conceit … the more pride one had, the more one disliked pride in others. … In fact, if you want to find out how proud you are the easiest way is to ask yourself, “How much do I dislike it when other people snub me, or refuse to take any notice of me, or shove their oar in, or patronise me, or show off?” The point is that each person’s pride is in competition with every one else’s pride. It is because I wanted to be the big noise at the party that I am so annoyed at someone else being the big noise.

Check the urge to pump up your superiority and develop the attitude of dignity through humility and gratitude.

The attitude that entails self-centeredness and superiority is called hubristic pride. It springs from fragile self-worth and manifests in less-desirable behaviors such as being disagreeable, pushy, vulnerable, and given to disgrace. You feel so badly about yourself that you compensate by feeling superior. You try to find others’ flaws as a way to obscure our own limitations.

Consequently, hubristic pride deprives you of humility. As an alternative to hubristic pride, philosophers advocate authentic pride. While hubristic pride depends on what happens outside yourself, authentic happiness is internal. Authentic pride causes you to feel good about yourself and become more confident and productive. It manifests in being agreeable, conscientious, and sociable towards others.

In effect, authentic pride comprises of dignity and modesty and gives you a sense of kinship—this mindfulness is the foundation of righteousness.

Idea for Impact: Discard hubristic pride and exercise authentic pride instead

Hubristic pride, it turns out, isn’t easy to recognize or restrain. Benjamin Franklin (1706—1790) who was renowned for his lifelong quest for self-improvement, wrote in his Autobiography (1791), “In reality there is perhaps not one of our natural passions so hard to subdue as pride. Disguise it, struggle with it, beat it down, stifle it, mortify it as much as one pleases, it is still alive, and will every now and then peep out and show itself…For even if I could conceive that I had completely overcome it, I should probably be proud of my humility.”

'Mere Christianity' by C. S. Lewis (ISBN 0061350214) Further in Mere Christianity, C.S. Lewis suggests discarding hubristic pride:

Do not imagine that if you meet a really humble man he will be what most people call ‘humble’ nowadays: he will not be a sort of greasy, smarmy person, who is always telling you that, of course, he is nobody. Probably all you will think about him is that he seemed a cheerful, intelligent chap who took a real interest in what you said to him. If you do dislike him it will be because you feel a little envious of anyone who seems to enjoy life so easily. He will not be thinking about humility: he will not be thinking about himself at all.

If anyone would like to acquire humility, I can, I think, tell him the first step. The first step is to realise that one is proud. And a biggish step, too. At least, nothing whatever can be done before it. If you think you are not conceited, it means you are very conceited indeed.

One key to better people skills is to develop an humble, self-effacing, but assertive outlook towards others by way of authentic pride. Authentic pride is a detached and steady sense of self-worth that you can develop by validating, affirming, and valuing yourself as you are.

Authentic pride comes from recognizing that many of life’s achievements and possessions are ephemeral. As I’ve written previously, everything in life is pointless, irrelevant, and ultimately insignificant in the grand scheme of things. When you focus on feeling good through accumulation of achievements and possessions, you become hooked on external sources of gratification. In comparison, dignity and modesty can dwell inside you regardless of your successes and failures.

You don’t have to prove anything to anybody—not even to yourself. When you become conscious of this, you will keep your hubristic pride in check. Others will become less irritable.

There Isn’t a Practical Reason for Believing What Isn’t True [Two-Minute Mentor #8]

When making decisions, relying entirely on intuitions, gut feelings, and anecdotal validations to justify your beliefs is not a sound rationale to trust your assessments, but to be suspicious of them. The British-American critic Christopher Hitchens (1949–2011) translated the Latin dictum “Quod gratis asseritur, gratis negatur” and famously said, “That which can be asserted without evidence, can be dismissed without evidence.”

It’s not sensible to hold a belief unless you have good reason for doing so. Neither is it sensible to cling to a belief because you believe it is useful and not because you think it is true.

Rational Investigation of One's Beliefs and Judgments Until you can organize the relevant evidence and determine whether a belief is true or isn’t, you should suspend your judgment.

Promoting the importance of rational investigation of one’s beliefs and judgments, the venerated Hindu mystic Swami Vivekananda (1863–1902) once said, “Do not believe in a thing because you have read about it in a book. Do not believe in a thing because another man has said it was true. … Do not believe in words because they are hallowed by tradition. … Find out the truth for yourself. Reason it out. … That is realization.”

Only a charlatan trusts in his beliefs without evidence—if his beliefs tell him that something is true, that’s good reason enough for him to think that it’s true.

Idea for Impact: One’s intellectual integrity lies not in what one thinks but in how one validates what one thinks.