Decisions based on numbers

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Business Decisions

Is this move worth it—a job, an investment, a loan, a new price? Daniel Kahneman showed that we decide quickly and then justify it with numbers. Overestimation and planning error are human, so numbers aren't the enemy of your intuition; they're its protection. Keith Cunningham, in The Road Less Stupid, puts it bluntly: wealth is built by avoiding bad decisions, and his tool is thinking time with written questions. At this level, every major decision is viewed with numbers up front: employment, investment, credit, a new price, exiting the business.

✓ Total cost of the employee ✓ Return on investment ✓ Credit, when it's worth it ✓ Healthy withdrawal

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