# Decision-making Over time, we tend to be continually confronted with a multitude of decisions to make, ranging from the simple and immediate (e.g., what to spend our current time on) to complex long-term ones (e.g., the legacy we wish to leave behind). While everything depends on the context, here I aim to document some basic metrics I consider when making decisions in my life. ## Key Factors In short, there are three main factors -- or, I guess, groups of factors -- that I usually consider: values, capabilities, and environment. ### Values Our values shape our goals and decision-making process, akin to a utility function in game theory. To optimize for something, we must first understand what we seek to optimize. And that requires a deep understanding of our desires in life, what brings us purpose, happiness, or whatever one calls it. Understanding our values early on is crucial to making informed decisions -- so we can take advantage of compounding effects in the long run and minimize the regrets we might have at the end of our journey.[^1] It is easy to say that we value certain things, especially those perceived as socially good or acceptable. However, I think one of the most sincere litmus tests is this: what percentage of time or money am I willing to spend? After all, resource allocation is often a good indicator of human preferences.[^2] ### Capabilities Our skill sets, resources, and time horizons are just some examples that determine the actions we can take. As much as I believe in equal opportunity, we are still mortal beings with a finite lifespan, so our current state matters. Understanding our capabilities, in addition to natural laws and biological constraints, enables us to analyze what is feasible and the probabilities involved. It's very tempting to feel like solving many problems we see around us. However, it's important to remember that great work requires lots of effort and excellence, and we all have only so many hours in a week, while expertise isn't built overnight. Hence, trying to spread our wings too much without proper self-awareness is very dangerous.[^3] ### Environment By this, I'm referring to the broader playing field beyond our control. Honestly, I don't know whether this is a factor that I consciously consider or if it subtly shapes my choices on a subconscious level. As the saying goes, people are a product of their environment -- though I guess we can often choose the environment we want to be in, to some extent. Understanding the environment helps us utilize our finite capabilities wisely -- so we can better optimize moving in the direction we value. ## In Practice While evaluating the key factors above does not guarantee certainty, I believe a thorough understanding of those elements can help maximize our chances of making wise decisions. Although, sometimes, it's essential to simply trust in our ability to figure things out along the way. I'd love to add real case studies based on the things I went through, but maybe for my next edit. --- [^1]: Jeff Bezos once coined a concept called [Regret Minimization Framework](https://www.youtube.com/watch?v=jwG_qR6XmDQ). Essentially, we project ourselves many years into the future and try to minimize regret regarding our past actions -- the decisions we make in the present. [^2]: A friend once told me: "Do you think everyone works on something they believe in? Sometimes they are forced to do it due to a lack of other opportunities or being pressed by financial situations." And yes, I agree that this is an example of how people can be irrational, though, to some extent, it can still reveal the priorities that put them in such a position to begin with. [^3]: This is perhaps related to the popular concept in Greek mythology about Icarus flying too close to the sun.