César Life is full of uncertainties, and we never know what the future holds. How can we cope with the challenges that come our way, and make the best decisions possible? There are many ways to face challenges, learn and grow, but there is one of them that stands out: The Economic Way 🙂 In this article, I will share with you the details about how The Economic Man navigates uncertainty with confidence and resilience, and how you can learn from his approach.
To begin with, I will state some assumptions. To quote Khaled Hosseini, “Nothing happens in a vacuum in life: every action has a series of consequences, and sometimes it takes a long time to fully understand the consequences of our actions“. Some things are just there, and we must adapt and make the most out of our environment and personal circumstances. So, feel free to tweak what I’m about to say to match your own needs 😀
- The Economic Man is not afraid of uncertainty; he embraces it as the norm. He knows that life, like the economy, is constantly changing and evolving, and that challenges are inevitable and sometimes unpredictable. However, he does not see uncertainty as a threat, but as an opportunity for growth and innovation. He views challenges as part of the natural order of things, and as a chance to adapt and prosper.
- The Economic Man understands that life, like the economy, has its ups and downs. He does not expect things to always go his way, nor does he despair when they don’t. He accepts that challenges are not roadblocks, but cyclical occurrences, and that with each cycle, there is room for learning and improvement. The only constant in life is change, and The Economic Man is ready to face it.
That said, let us dive deep into the thought process of The Economic Man and how you can use it to your advantage.
The Economic Man does not leave things to chance; he plans and prepares for uncertainty. He uses economic principles to guide his actions and decisions, and to manage the risks and opportunities that come his way. Here are some of the strategies that he employs, so that you can take some inspiration from them and add them to your toolkit:
– Risk Management: The Economic Man is not reckless; he is prudent. Uncertainty means risk, and The Economic Man tries to keep that risk to a minimum whenever possible. He does so by diversifying his options and resources, just as businesses diversify their investments to reduce losses. He considers the potential outcomes and consequences of his actions, and plans accordingly, so that no unnecessary or unjustified risks are taken. Knowing the risks associated to actions makes it easier for The Economic Man to make informed and rational choices.
– Decision-Making: The Economic Man is not impulsive; he is deliberate. Related to the previous note, The Economic man knows that uncertainty requires decisions, and he tries to make the best ones possible. He does so by using a decision-making framework based on economic principles, such as cost-benefit analysis and scenario planning. By weighing the pros and cons of each option, and comparing them with the alternatives, The Economic Man can have a decent understanding of what would happen based on his choices. Don’t get me wrong though: us economists are not fortune tellers! We just try our best to plan ahead and make sure we are prepared for the best-case and worst-case scenarios. However, there is a catch to this: don’t let paralysis by analysis keep you from taking that first step! Just because it is better to make informed and deliberate choices, it doesn’t mean you have all the time in the world to think and plan. Get out there and get things done! If you feel like you’re struggling with this, I would recommend that you take a look at the Agile methodology. Just like The Art of War by Sun Tzu has been used in many different scenarios such as corporate management, competitive sports or even politics, I think this way of working can be applied to our decision-making process, especially when we want to focus on a larger or more ambitious goal of ours.
– Opportunity Seeking: Much like job interviews nowadays, it’s all about being proactive. We’ve all heard that word, and I’m telling you: I’ve heard (and even said it myself) it so much in the corporate world that it triggers me every time I see it. But there is some truth to it! The Economic Man knows that uncertainty also involves opportunities, and he tries to seize them as much as possible. He does so by being alert and curious, just as businesses look for new markets and niches to exploit. He sees challenges as a fertile ground for creativity and innovation, and as a chance to discover new possibilities and solutions. This is also related to another term I’m sure you’re familiar with: comfort zone. I know I’m sounding like a consultant, or that manager whose work is just meetings, but these concepts are actually useful. By being proactive and seeking new opportunities in different aspects of your personal and professional life, you will increase the odds of finding that thing you’re passionate about, or that special someone you can start a project with!
These principles are a very good starting point, and I am sure that you will find them helpful. But there is more to it than just a few skills. As you already know, The Economic Man is more than just a series of tips and tricks: it’s a mindset. Not the kind of mindset that’s for sale in some useless course based on a Ponzi scheme, though, so fear not, for I will share it with you at no cost 🙂
One of the key points here is that The Economic Man is not rigid; he is flexible. Uncertainty demands adaptation, and he tries to adjust to the changing conditions. He does so by being agile and versatile, just as economic models adapt to new data and variables. Being open to new information and feedback means he can update his beliefs and actions accordingly. He is willing to experiment and try new things, and he learns from his successes and failures. He does not resist change, but he does not lose his identity either. This is very important, as it implies that, even though you can (and should) learn from different sources and expand your knowledge by adapting to change and making decisions, it should take more than just learning a new thing or exploring one perspective for you to change the way you look at things. “Strong opinions, loosely held“.
Resilience is the other main pillar of The Economic Man’s mindset. He knows that uncertainty entails setbacks, and he tries to overcome them, just as economic systems recover from crises and shocks. Challenges are opportunities, and obstacles are just a part of life. The Stoics were no experts in the matter, but they came up with a very similar mindset many years ago. Marcus Aurelius said: “The impediment to action advances action. What stands in the way becomes the way“. Words to live by, if you asked The Economic Man.
As we have seen in this article, the Economic Man is a master at navigating uncertainty, because he adopts a rational and strategic approach that is inspired by economic principles. You can learn from The Economic Man’s approach, and apply it to your own life. By doing so, you can cope with the challenges that life throws at you, and make the best decisions possible. You can turn uncertainty into an opportunity, and make the most of every situation. You can become more confident and resourceful, and achieve your goals. The Economic Man’s approach is not a magic formula, but a mindset that you can adopt, practice and shape to fit your needs. Whatever you make of it, I am sure that this way of looking at life can help you see the silver lining in every uncertainty. It is now your turn to live life… The Economic Way 😉
LEARN MORE:
- Holiday, R. (2014). The obstacle is the way: The Timeless Art of Turning Trials into Triumph. National Geographic Books.
- Ceberio, M., & Kreinovich, V. (2024). Decision making under uncertainty and constraints: A Why-Book. Springer.
