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Blink 3 of 8 - The 5 AM Club
by Robin Sharma
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Nudge summary
Richard H. Thaler and Cass R. Sunstein
Improving Decisions about Health, Wealth and Happiness
14 mins
Brief summary
Nudge by Richard H. Thaler is a book that explores how we make decisions and how small nudges can help us make better choices, without removing our freedom of choice.
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Nudge
Summary of 10 key ideas
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Key idea 1 of 10
We don’t always make decisions that are best for us in the long run.
Most people have a pretty clear idea of what’s good for them and what’s not. They are determined to eat healthily, save money for retirement and not smoke.
But when it comes to actually seeing these things through in everyday life, they often do the opposite: they eat unhealthily, they’re reckless with money and they smoke too much.
Unwise behaviors crop up in all parts of our lives, from eating habits to investment decisions to the way we structure our daily schedule. We grab a chocolate bar even though we know that an apple would be better for us; we hit snooze every time our alarm rings despite knowing this means we’ll only have to rush later.
Such behavioral patterns cause problems when quick decisions result in serious long-term consequences.For example, statistics show that when it comes to saving money, most US citizens save very little even though they know this can cause them trouble later.
If we suddenly lose our income due to illness or unemployment or have unexpected expenses like getting our car fixed, and have no savings to fall back on, we become angry about the irrational decisions we made in the past. And yet, despite knowing this, we continue to make financial decisions based on short-term rather than long-term goals.
We don’t always make decisions that are best for us in the long run.
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Key ideas in Nudge
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What is Nudge about?
The message of Nudge is to show us how we can be encouraged, with just a slight nudge or two, to make better decisions. The book starts by explaining the reasons for wrong decisions we make in everyday life.
Nudge Review
Nudge (2008) explores the concept of the "nudge" and how small changes can have a big impact on our behavior and decision-making. Here's why this book is worth reading:
- With its foundational ideas and clear explanations, it empowers readers to understand the power of nudges and how they can be used to improve our lives and society.
- Backed by research and real-world examples, the book provides practical insights into how we can design environments and systems that nudge people towards making better choices.
- By combining economics, psychology, and behavioral science, the book offers a comprehensive and interdisciplinary perspective on human behavior, making it intellectually stimulating and thought-provoking.
Who should read Nudge?
- Anyone who wants to live a healthier, more disciplined life
- Anyone interested in how countries and companies can influence people’s decisions
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Nudge FAQs
What is the main message of Nudge?
Improve decision-making through subtle nudges.
How long does it take to read Nudge?
Reading time for Nudge varies, but Blinkist summary takes just 15 minutes.
Is Nudge a good book? Is it worth reading?
Nudge is a valuable read. It provides insights into human behavior and practical ways to make better choices.
Who is the author of Nudge?
Nudge is written by Richard H. Thaler and Cass R. Sunstein.
What to read after Nudge?
If you're wondering what to read next after Nudge, here are some recommendations we suggest:
- Noise by Daniel Kahneman
- The Chimp Paradox by Prof Steve Peters
- Predictably Irrational by Dan Ariely
- Black Box Thinking by Matthew Syed
- The Paradox of Choice by Barry Schwartz
- Originals by Adam Grant
- #GIRLBOSS by Sophia Amoruso
- How to Know a Person by David Brooks
- Millennial Money by Patrick O’Shaughnessy
- Talking to Strangers by Malcolm Gladwell