Your Mind Plays Tricks
Here is an uncomfortable truth: your brain is not designed to think clearly. It is designed to think quickly.
For most of human history, fast thinking kept us alive. See movement in the bushes? Assume it is a tiger and run. Better to be wrong and alive than right and dead.
But modern decisions are different. Choosing a career, making investments, building relationships—these require slow, careful thought. And our brains resist that.
Understanding the tricks your mind plays is the first step to making better decisions. Let us examine the most common ones.
Confirmation Bias: Seeing What You Want to See
Once you believe something, you start noticing evidence that supports it and ignoring evidence that contradicts it.
Example: The business idea
You think of a brilliant business idea. Suddenly, you notice people everywhere who would buy it. You remember every encouraging comment and forget every doubt.
Example: First impressions
You decide someone is untrustworthy. From then on, every ambiguous action confirms your belief. They are late? Unreliable. They arrive early? Trying to manipulate you.
The antidote: Actively seek information that might prove you wrong. Ask: "What would change my mind?" If nothing could, you are not thinking—you are just believing.
Sunk Cost Fallacy: Throwing Good Money After Bad
You have already invested time, money, or effort into something. It is not working. But you continue because you do not want to "waste" what you already spent.
Example: The terrible film
Thirty minutes into a film, you know it is bad. But you paid for the ticket, so you sit through two more hours of misery. The ticket money is gone either way.
Example: The failing project
A business has invested lakhs in a project that is clearly not working. Instead of stopping, they invest more, reasoning: "We cannot stop now after all we have invested."
The antidote: Ask yourself: "If I were starting fresh today, with no past investment, would I choose this path?" If no, stop. What is spent is spent.
Anchoring: The First Number Wins
The first piece of information you receive has an outsized influence on your thinking, even when it is irrelevant.
Example: The MRP tag
A shirt has "MRP ₹2,000" crossed out, with "Sale: ₹1,200" below it. You feel you are saving ₹800. But the shirt was never worth ₹2,000. The anchor shaped your perception.
Example: Salary negotiations
If an employer asks your expected salary first, they anchor the negotiation. If you say ₹8 lakhs, they might offer ₹7 lakhs. If you had said ₹12 lakhs, they might have offered ₹10 lakhs.
The antidote: Before receiving external information, form your own independent view. In negotiations, set your own anchor first. Do not let others frame your thinking.
Availability Bias: What You Remember Seems Common
You judge how likely something is based on how easily you can remember examples. Vivid, recent, or emotional events seem more common than they are.
Example: Fear of flying
Plane crashes make dramatic news. Car accidents do not. So people fear flying more than driving, even though driving is far more dangerous. The memorable examples distort judgment.
Example: Startup success stories
You hear about successful entrepreneurs but not the thousands who failed. This makes starting a business seem easier than it is. Survivors are visible; failures are forgotten.
The antidote: When estimating probability, look for actual statistics instead of relying on what you remember. Ask: "Am I judging by data or by dramatic stories?"
Other Traps to Watch For
- 1.Overconfidence: Most people think they are above average—which is mathematically impossible. Assume you know less than you think you do.
- 2.Status quo bias: We prefer the current state, even when change would be beneficial. "Better the devil you know" is often bad advice.
- 3.Loss aversion: Losing ₹1,000 hurts more than gaining ₹1,000 feels good. This makes us too cautious, avoiding worthwhile risks.
- 4.Hindsight bias: After something happens, you think you "knew it all along." This stops you from learning from your actual thinking process.
Ancient Wisdom on Clear Thinking
Thiruvalluvar understood the importance of mental strength:
"உள்ளம் உடைமை உடைமை பொருளுடைமை
நில்லாது நீங்கி விடும்"
Meaning: "Mental strength is lasting wealth. Material possessions inevitably depart."
Chanakya warned about clouded judgment:
"विनाशकाले विपरीत बुद्धि॥"
Meaning: "When destruction approaches, wisdom deserts."
In modern terms: A clear mind is your greatest asset. When emotions run high or circumstances feel urgent, that is precisely when your thinking becomes most unreliable. The wise recognise this danger and create distance before deciding.
Key Takeaways
- ✓Your brain is designed for speed, not accuracy—understand its shortcuts
- ✓Confirmation bias: Actively seek information that might prove you wrong
- ✓Sunk cost fallacy: Past investment should not drive future decisions
- ✓Anchoring: Form your own view before receiving external information
- ✓Availability bias: Use statistics, not memorable stories, to judge probability
Reflection Question
Think of a belief you hold strongly—about yourself, about business, about life. What evidence would it take to change your mind? If you cannot think of any, you might be caught in confirmation bias.
There is no right answer. The point is to practise examining your own thinking.