THINKING

10 Mental Models that will level up your Thinking:

1. First Principle Thinking - Rethink the problem from the ground up. Separate the underlying facts from assumptions made based on them.

2. Second-Order Thinking - Instead of thinking about the immediate consequences, think about the second-level consequences.

3. Inversion - Look at the problem at hand from the endpoint instead of the starting point. Don't ask: "What do I need to do?" Ask: "What must I avoid?"

4. Opportunity Costs - Think about the costs that arise because you decide in favor of one option and thus against every other option.

5. Randomness - Keep in mind that there aren't always cause-effect relationships. Lots of stuff is random.

6. Leverage - “Give me a lever long enough and I shall move the world.” - Archimedes

7. Margin of Safety - Assume that your assumptions can be wrong and plan with a safety margin.

8. Occam's Razor - Always start with the simplest explanation, the one based on the least assumptions. Then move to the other explanations if wrong.

9. Law of Diminishing Returns - Up to a certain point, additional units offer more value. But there's a turning point where additional units offer less and less value, and costs rise.

10. Niches - Specializing is an effective way to success. Use it and choose a niche where you become an expert.