Nov 11, 2024

Second-Order Thinking

Terry Danylak Strategy 1 minute

Mind-shifting words: Some decisions you make seem like a win at first but turn out to be losses over time. This is because we don’t think through all of the consequences.

Strategy Shift: Second-Order Thinking

When trying to make a decision, your natural reaction is to think about what happens immediately after you’ve made the decision. For example, when thinking about having a chocolate bar, your immediate thoughts are whether you will like eating it or have to exercise more to burn off the extra calories.

In second-order thinking, you should ask yourself about the long-term consequences of that decision.

In the chocolate bar example, the second order consequences could be getting used to eating chocolate bars and gaining weight faster or even getting diabetes. A positive second-order effect could be you exercising more and losing more weight faster.

Whether to have a chocolate bar may seem like a trivial decision, but its second-order effects could have a bigger negative effect.

You don’t have to apply second-order thinking to all your decisions, but it’s a useful exercise for decisions with much larger consequences.

Think it through, long term.