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How to make better decisions: 7 habits that actually work

5 min read · Updated 19 October 2026

The short answer

To make better decisions, match your effort to the stakes, name the one fact the decision depends on, and check it cheaply before you commit. Then take a small, reversible first step and review how it turned out. The Smart Thinker teaches this as four steps: Question → Test → Decide → Learn.

Better decisions are a skill, not a personality trait

People who make consistently good decisions aren't smarter or luckier. They have a few habits that stop them acting on guesses when the stakes are high, and they let small decisions go quickly.

That's good news: habits can be learned and practised, the same way you'd practise any other skill.

7 habits of better decision-makers

  1. Sort by stakes. Ask: is this expensive, hard to undo, or does it affect other people? If not, decide fast. If so, slow down.
  2. Write the decision in one sentence. “Should I take the job in Brisbane?” is clearer than a cloud of worries — and it shows you what you're really choosing.
  3. Name the load-bearing fact. What has to be true for this to work out? That single assumption is what deserves your attention.
  4. Run the cheapest check. One call, one email, one document, one second opinion. Get evidence, not promises.
  5. Add one more option. Most decisions get framed as yes or no. Asking “what else could I do?” often finds a safer middle path.
  6. Commit in stages. A trial, a deposit you can recover, a small first order — so being wrong costs little.
  7. Review the process, not just the result. Good decisions can turn out badly through bad luck. Ask: did I check what mattered?

Put it together: Question → Test → Decide → Learn

Question what could go wrong. Test the assumption behind it with the cheapest check. Decide on what you found, taking the smallest safe step. Learn from how it turned out, so the next decision is easier. It takes minutes, and it catches the mistakes that cost the most.

Frequently asked questions

What is the best way to make decisions?

Use a simple, repeatable process for decisions that matter: ask what could go wrong, check the key assumption cheaply, take a small first step, and review the result. Decide small, reversible things quickly.

How can I make better decisions quickly?

Ask one question before committing: what's the one fact this depends on, and can I check it in under five minutes? That single habit prevents most costly mistakes without slowing you down.

Why do I keep making bad decisions?

Usually because of a repeating pattern — deciding when rushed, tired or under social pressure, or trusting a claim nobody checked. Reviewing a few past decisions often shows which pattern is yours.

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