In this episode of Success That Lasts, Jared Siegel discusses why outcome bias works against us. He defines “resulting” and shares tips for getting comfortable with uncertainty and making better decisions.

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Here are a few highlights from this week's episode:

  • Doing well with money isn’t about what you know; it’s about how you behave. You stand a greater chance of making smarter decisions about wealth if you change the way you think, which affects how you behave.
  • “Resulting” is a term coined by poker players that defines the tendency to confuse the quality of a decision with the quality of its outcome. In cognitive science, this is called outcome bias, and it’s a dangerous tendency that we’re all susceptible to.
  • “Diversification enables us to increase the near-term predictability that many of us need and desire,” Jared shares, “because we can't entirely eliminate uncertainty over shorter periods of time.”
  • According to researcher Jonathan Haidt, we have two ways of thinking that work simultaneously at all times: our gut, which is quick, emotional, and very persuasive; and our head, which is slower and less powerful, but more objective than our gut.