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How to avoid making bad decisions

4 min read · Updated 7 October 2026

The short answer

Most bad decisions come from acting on an assumption you never checked, usually under time pressure. To avoid them, slow down on decisions that are expensive or hard to undo, name the one fact your decision depends on, and confirm it before committing money, time or other people.

Where bad decisions really come from

Look closely at most expensive mistakes and you'll find the same pattern: a confident plan built on something nobody verified. The client's old logo. The trip that was next weekend. The agent who wasn't really an agent.

Pressure makes it worse. Deadlines, “other buyers are interested” and wanting to look helpful all push us to skip the check.

5 habits that prevent bad decisions

  1. Treat urgency as a warning sign. When someone needs an answer right now, that is exactly when to ask one more question.
  2. Name the load-bearing fact. Ask: what has to be true for this to work? That's the thing to check.
  3. Check with an independent source. Confirm through a number, document or person you found yourself — not the one handed to you.
  4. Get it in writing before you spend. Approvals, prices and dates belong in writing before money moves.
  5. Commit in stages. A small first step limits the damage if you were wrong.

Frequently asked questions

Why do smart people make bad decisions?

Because confidence and speed feel like competence. Smart people are often quicker to trust their first read of a situation, which makes the unchecked assumption more likely, not less.

How do I stop making impulsive decisions?

Create a small, fixed pause for big decisions — for example, one confirming question or an overnight rule for any purchase over a set amount.

Build the habit in five minutes a day.

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