First, Second & Third-Order Consequences
Every decision we make and every action we take has some sort of knock-on effect.
Let's say we are trying to make a decision between doing two things.
Let's say these two things are the classic examples of going out versus staying in because the consequences of these are pretty easy to understand.
In this context, 'going out' means full degen sending it.
I'm using this example because this is probably the thing that has aided me the most when it comes to growing my ventures.
When we look at the first-order consequences of these things, they probably look something like this.
Going Out - Has lots of fun with friends drinking and enjoying music etc
Staying In - Has *subjectively* less fun but has a nice peaceful quiet night
On paper, a lot of people will see this as the choice that they have to decide between which is probably why most people (not necessarily people on this list) would opt for the former.
But when we look at the second-order consequences, they start to paint a bigger picture.
Going Out - Feels dreadful the next day, the ol' bank account has probably taken a hit and the day is written off.
Staying In - Feels great the next day, cracks on with work like it any other day.
Again, this is only a very short-term difference unless you get hangovers so bad that they last for days.
But here's how the third-order consequences can really widen the gap.
Going Out - Didn't get the stuff they wanted to do that day because of the hangover and now they have to play catch-up all week.
Staying In - The work that was produced that day went on to land a client that was worth £2,000 to the company in deals.
Now, we can't really look much further past the first, second and third-order consequences because there are too many unpredictable variables to go beyond that.
But asking yourself what 1,2 and 3 are will definitely aid you in making less irrational decisions because the first-order consequence looks appealing.
This is almost like a practical way to map out what delayed gratification could look like for you, which might make it easier to make the sacrifices in the short term.
Happy Wednesday my people, have a great week and smash anything you are on with this week <3
Thanks for reading guys,
Charlie @ Progressus Network x
Introduction To Mental Models
Hey friends,
I've just left this at the bottom in case you missed it last week.
Part of the problem that I observe with self-development creators or online entrepreneurs is this 'one-size-fits-all' approach to their advice.
A.K.A 'This worked for me, therefore it will work for you as well'.
I think a lot of the overwhelm we feel from social media is feeling like all of these statements are true at the same time when really they all probably hold some validity but not across everyone.
Here is where the concept of a 'mental model' comes in.
Charlie Munger, Warren Buffet's business partner, pioneered this idea and people like Chris Williamson, Alex Hormozi and Naval Ravikant.
A mental model is not straight advice telling you what you should do and what not to do, but rather providing you with an idea and a parameter for you to make your own decisions.
Our own individual consciousness is almost like an OS (operating system) like we have on our phones or computers.
Mental models are like apps that you use for certain purposes like we use maps for directions and cameras for photos.
I want to start writing more about mental models because straight advice is not true across large audiences, whereas mental models are far more applicable.
Plus, who am I to tell anyone what you should or shouldn't be doing with your life?
I hope you enjoyed :)
P.S. If Southgate doesn't start Trent tonight, we riot.