Category Archives: asset management

Information and Your Happiness

Information and Happiness

Information and Happiness

Today I am going to chat with you about the information you deal with, its impact on your happiness, and ways to make it work for you to have a more fulfilling life.

Introducing Information

A few weeks ago, as part of the recently added theme on better living, I introduced you to my infographic that I call “A Better Life” to be helpful in my guidance for you. It is not because I have it in my tagline (the refusal to think is evil) that I think that your thoughts are critical to your happiness. You want to be happier, you want to feel that life is fulfilling. Hey, I want that too! You have thoughts, lots of thoughts, and all the time. Whatever you think, they lead to what you feel, and then to the action you take, and the result that follows. The thoughts are based on the information set you hold at any point in time. (The term ‘information set’ is just a fancy term for everything you know. In other words, it is a sum total of all the things you experienced since birth minus all the things that you have forgotten.)

So, why should we pay attention to the formation of this information set and what can we do about constructing and using it in a way that makes us happier?

Impact – Short Term – Incremental Information

If through some mechanism we created a replica of you right now, and called that twin ‘YourTwin’ you would both be in precisely the same emotional state. If YourTwin was then whispered some good news, and you were whispered some bad news, your emotional states would typically diverge. That additional news imparted was added to the information set that each of you held. As time passes you and I receive different bits of information and so our information sets are very different.

Impact of Incremental Information

Impact of Incremental Information

In the case of the sudden magical existence of YourTwin, before the additional news was imparted, with the same information, the thoughts, feelings and actions would have been identical. It is the incremental information that led to a divergence of moods.

Impact – Long Term – Integral of Information

screenshot255You are the sum total of your experiences so far. Because the long term is made up of the many, many short-terms it is important to understand the impact of each short-term and also the interaction between the many short-terms that make up the long-term.

Revelation of Information, Resolution of Uncertainty

Uncertainty, Reality - Information includes unrealized possibilities

Information includes unrealized possibilities

As time passes uncertainty is resolved. What was once a set of possibilities in our information set becomes a single reality in the information set. It is also worthwhile noting that the many unrealized possibilities are not to be discarded in favour of the single possibility that was eventually realized.

 

Let us now zoom into the information component of the infographic, A Better Life

Information in A Better Life

Information in A Better Life

Information Sources – Internal and External

External Information lies outside your mind. The non-human sources are many (e.g. internet, TV, printed material). The human sources are all the people you interact with directly. Internal Information is that which resides in your mind already, memories since birth. Most of the internal information will have originated from external sources. It is this information that we must take great care of and is essentially what drives your happiness. Your internal information is also your knowledge.

The Value of Information – My Green Underwear and Your Consumption

Many of us confuse ‘information’ with ‘useful information’. Even academics will often publish research that is ‘new’ and even incremental to existing information. [Click here to see some of mine 🙂 ]  However, you need to understand that, for you, information is useful and worth sourcing, analyzing and storing only if it will affect your current or future consumption. The knowledge that I am wearing green underwear does not affect your future happiness – it is new information but it is of zero value [or even negative value 😉 ]. Perhaps this crude analogy will help you remember this point whenever you think of information sources, so-called-information or news items, and storing that information. Ideally, information you seek ought to be both incremental and useful.

Action – External Information Sources

Given that information is the input to our thoughts, filtering it appropriately is important. Doing it consciously and with intelligent focus is very important. When I block out certain information sources, I call it ‘negative filtering’. Blocking out is extreme filtering – preventing information sources from reaching you in the first place! With external non-human information sources, this could include switching out of rubbish TV channels, muting the TV during adverts, watching news channels that do not constantly pipe through bad news. Filtering out external human information sources would include avoiding people who are ‘a waste of time’ or affect your state of mind negatively. And then we have the converse, ‘positive filtering’, to actively receive targeted e-mails on subject areas or sub-topics of interest, or meeting friends and experts who enhance our state of mind.

Block out Rubbish, Store the Useful Stuff Carefully, and Try to Not Forget it!

Block out Rubbish, Store the Useful Stuff Carefully, and Try to Not Forget it!

Action – Noise, not News

Someone who reads nothing is likely to not benefit much from the information available out there. Someone who reads a lot without being discerning is likely to (a) not retain much (b) spend less time on reflecting or have less time for acting in ways that make that information useful (c) not become particularly knowledgeable at things that are useful. Stop reading that newspaper every day. It is more likely to be making you more stressed and less happy. Even if you work in the financial markets, going to news actively at more spaced out intervals is likely to help you make better decisions. Do not waste your pre-frontal-cortex’s limited bandwidth on noise. Become a connoisseur of new useful information, not a mindless consumer of noise.

Pre-Processing Before Storage

Processing the information that you receive is also important so that you can decide whether you need to take specific action based on it or simply store away that information. Understanding how we commit to memory is also important then. Techniques for reinforcing useful memories for the short term (e.g. the name of the waiter who just served you – for a better meal experience) or the long term (e.g. the process for emergency CPR – to save a life!) will also be good for you to develop.

Internal Information

Information once stored comes in handy later for solving problems (e.g. getting to your favourite restaurant) and at times it can be debilitating (e.g. fear of approaching your boss to ask for a pay rise because of experiences in your childhood or recent past). Handling that internal information consciously is also important for thriving. Being conscious of your power to try to retrieve only useful information will make you feel more in control of your own life. Your internal information is your knowledge – and knowledge is power! Focus on quality not just quantity. But, with regards to quantity, remember that knowledge builds on knowledge – you can’t read unless you know the alphabet! You won’t eat healthily if you don’t even know something as simple as what the nutrient groups are!

Results as Information

With the information that we have we think through a decision process and then perform certain actions. Those actions lead to certain results and those results become new information that we have to then manage. We generally tag or label these results e.g. ‘disaster’, ‘bad’, ‘good’, ‘awesome’ when we store them away but that tagging also needs wisdom. I spoke to you many months ago about how such labels can limit you. Results are just an outcome and, therefore, beyond the necessary analysis, resultant conclusions and sensible storage, it makes more sense to focus in a disciplined manner on improving the design and execution of the daily processes (that drive the results).

Information and Cognitive Biases

Humans are subject to a whole host of cognitive biases that make us function in less than optimal ways. Knowing what these biases are, and what their impact might be, will help reduce the cost of errors you make using the information you handle. Ignore this aspect at your peril!

Junkie? No! Snob? Yes!

If you are anywhere close to my age or older you grew up in times when information and knowledge were not easy to come by. There was no world-wide-web and definitely no smart search engines. You had to typically get hold of books, journals or wait for a specific documentary to be aired on TV. Today, there is concern about information overload. There are some people who still take pride in being news junkies. I prefer to follow the approach of being an information snob. Don’t take false pride in hearing about a lot, or even knowing a lot. Take pride in knowing enough of what is important to lead a happier life. It is not a problem of information overload – it is a problem of inappropriate filtering! I consciously seek additional knowledge every day but I try to do that under the umbrella of consciously deciding what information to add to my information set. Information that will not make me happier now or in the future, I consciously avoid. Information that will help me consume more units of happiness now or in the future is what I am interested in. Paying attention to that detail is important.

Be a snob, don’t consume junk!

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Dr Purnendu Nath spends his waking hours focusing on helping individuals and organizations reach their goals, to make the world a better place. He speaks, writes and advises on topics such as finance, investment management, discipline, education, self-improvement, exercise, nutrition, health and fitness, leadership and parenting.

A Better Life – Today and Tomorrow?

A Better Life – Today and Tomorrow?

A Better Life – Today and Tomorrow?

Even if you are blissfully happy, this 2-minute-30-seconds read will help you have a more fulfilling life. Simple to understand, easy to implement, tried and tested.

Billionaires or Paupers

A few months ago, I was invited to speak at a private club of billionaires. I started my discourse to the room full of friendly faces with the simple fact that, whether a pauper or billionaire, our number of hours of living per day are the same 24 hours. It is what we do (and think) in those 24 hours that determine our level of happiness and fulfillment.

Trade-offs

We all want to live happy and fulfilling lives. We are born into this life with nothing material, and we go to death with nothing financial. If you are reading this on a screen, you are unlikely to be on the poverty line, no matter where in the world you live. And yet, you are likely to be breaking your back in the pursuit of wealth beyond your needs. That might be acceptable to you until you realize that the trade-off is not worth it. Often you realize it when it is too late, and often you realize it when it is not late but you feel the regret about time lost.

Preparing for a Robust Future

When we are little children, we naturally enjoy each moment. A year seems like eternity. As we get older the natural instincts to survive and procreate increase our drive to do something that will have a beneficial impact on our future. We think of investing in our future with education and training, with building cooperative networks, new friendships and even marriage. We even try to future proof our careers by investing in further education, or protect the future of our businesses through investing research or additional land or new equipment. As a general framework, all that is right on track.

Hindsight Regret

There come those moments before death when we realize that we have gathered too much that is material and, yet, immaterial. That farmhouse that we visited for a couple of weeks each year. That set of diamonds we wore five times. That expensive rare watch that only signalled that we had money not character. That car more expensive than the home of your chauffeur who will drive it on traffic jammed roads while you sit at the back, and what gets weaker is your back!

Even long before we get to that late stage, and long after we are set on a path of considerable wealth relative to our needs, NOT our wants, we continue to acquire with little regard to the bigger picture. We pay little attention to our physical fitness – oh, but we pay for all the equipment and gear our kids need to play sports. We give little notice to what we put in our mouths – oh, but we spend a lot on the finest restaurants with our friends. We don’t think much about our thoughts – but we pay for our kids to get schooled at the best. We spend little time thinking about life’s true meaning – but we will be eager to donate to the local church, mosque, or temple.

Disconnect

We save as if we’ll live for decades, but we live like we do not care to be healthy to live that long. There is clearly a disconnect. In fact, even when we know that there is a disconnect, we don’t usually address it – mostly because at first glance it is not a simple problem to solve. Being human, we go down the path of least resistance, and so we ‘continue as is’. Maintaining the status quo is the widely practised default scenario played out.

The Path Ahead – Leading a Better Life

I started this series of conversations with you more than two years ago with my first chat about ‘Discipline’. Following on from there I spoke over many months on topics such as nutrition, fitness, health, process, performance and excellence. Today’s conversation was to set the stage for another theme that I speak to audiences about often – leading a better life – beyond just physical fitness improvements and intellectual development.

I hope you will make time to enjoy benefiting from the chats to come.

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Dr Purnendu Nath spends his waking hours focusing on helping individuals and organizations reach their goals, to make the world a better place. He speaks, writes and advises on topics such as finance, investment management, discipline, education, self-improvement, exercise, nutrition, health and fitness, leadership and parenting.