Transcript for:
Maximizing Willpower with Behavioral Economics

"Mr. NJT!" "Things aren't working for me even after watching the habit video!" "My will isn't strong enough." I want to exercise, read books, and pick up some hobbies, but it's not easy, is it? I want to quit smoking and lose some weight, but I got ahead of myself. You've been weak-willed until now, haven't you?! Huh? Yes.... Today, I've brought you a true legendary-level solution that is 10 times better than the previous habit video for these kind of people. If you have watched this video till the end but still felt that nothing's changed, you may cancel your subscription and leave malicious comments. Refund is possible! Unless you suffer from a severe neurological disease, I promise that you are capable of changing. Sigh, I was planning to keep this for myself... Now! The steady-seller book that was awarded the Nobel Memorial Prize in Economic Sciences! A book that played a key role in the Obama administration! Textbook of the Behavioral Economics! With 'Nudge: Final Edition', I will change your life forever! "Wait! You already did that last week." Don't worry, it's different. You don't even have to see the last video. If the last episode was 'How to Manipulate Others', this episode is 'How to control myself'. Elaborating behavioral economics, the secret to self-development. Let me tell you about it now. Come on! [Adding YouTube sentiments to reading / NJT] [(Just review!) The content may overlap with the previous video] First of all, you must understand the principle to fully enjoy the effects. So, please pay attention for a bit! [(Heuristic theory)] Now, according to cognitive psychology, our brain has two modes. 'Conscious' mode and 'Subconscius' mode. It will be easier to understand if you use phone game as metaphor. 'Conscious' mode, as the name suggests, means manual! You do everything manually. What to do from now on, how to do it, where to do it. Every single thing is operated manually. Hm... don't you feel uncomfortable while listening to it? Even though it is interesting to operate things manually... seeing that there are many things to pay attention too, it's a mode that consumes a lot of energy and takes a long time. It's inefficient! That's why we utilize the 'subconscious' mode. You don't need to turn on Google Maps on your way home from work or school. No need to worry whether to turn right or left in the alley. As you walk and think, "What to eat tonight?" you'd naturally have arrived in front of your home. Yes, this is the subconscious mode. It's faster than a supercomputer, and it quickly summarizes the big data that's been accumulated for decades. It's very powerful and requires little energy. So, it is useful for business. "I think It'll be better to do this," It's also useful when socializing. "Something is up with that person..." "Subconscious mode is a little too good.." But, here's the thing. Unfortunately for subconscious mode... error frequently shows. In the previous video, I explained the errors that the subconscious mind makes. I told you that using it backwards is a 'Nudge'. Take this as an example. If you went on a blind date and introduce yourself with, "I like anime", the subconscious mind of your blind date partner intuitively analyzes big data of experience. It is likely to create prejudice. "Ugh... an otaku." Then, by taking advantage of this prejudice, how about introducing yourself this way? "I like sports and enjoy reading." "He seems alright...?" Your chances of getting a respond will be higher! This way, by taking advantage of errors the subconscious mind makes, 'Nudge' is a skill that induces specific actions. "Then, if you live with your conscious mind all day, does that mean you will never get nudged?" Absolutely. However, it's impossible. Conscious mode consumes a lot of energy just by turning it on and off. When it's turned on forcefully, it becomes slower and performs poorly compared to the subconscious mode. Truly a very costly mode! "So, it's better to use only subconscious mode even considering the errors!" But, there's a problem with that. Unlike the conscious mode, the subconscious mind is only good at what it's familiar with. The subconscious mind is an idiot. It's unable to accept new knowledge due to lack of learning ability. It only does what's usually done and avoid what it's never been done. This is the concept essence the subconscious mode and conscious mode. You have to thoroughly make up your plans using conscious mode. If you look at your planner using your subconscious mode, you'd end up saying this. "Hm... I'm just gonna go play some games like I usually do." Subconscious mind is more cost-effective, but more prone to error and is stupid. Conscious mode is slow and intense, but it works very well! Knowing this, you can use each mode for the right situation. "Oh, so I can just turn on conscious mode whenever I want to stick to my plan!" Huh? No? I mentioned just now that it consumes a lot of energy and is difficult to use, did I not? "Oh, but it'd be possible if you have the will..." Of course, for some people with a good environment and genetics, if they have lots of willpower... They can turn their conscious mode on and off at will, but it's not the case for us. If that was possible for you, you won't even be interested in watching this video. "Oh, then I guess you'll tell us how to increase our willpower." No? I'm not. Actually, even though it is a common opinion, Unfortunately, many academics believe that there are limits to each individual in terms of willpower. Just like determining woman or man, tall or short, small or big, your willpower is already set. It can increase, but not at a wide range. "Ah..." "Then what am I supposed to do, you nutcase!" That's why I brought 'Nudge: Final Edition'. What did I say 'Nudge' was earlier? I mentioned that it is a skill that prompts the subconscious mode to perform certain actions, right? So, how about you use the nudge on yourself? Even without turning our willpower into a subconscious mode, wouldn't it be possible to induce the subconscious mind to stick to the plan? The second half of the book is actually written for American marketers, politicians, or insurance agents, so it may seem pretty out of touch for us. However, if you apply the six nudge principles introduced by the author to yourself, you will be amazed! [1. Structuring Complex Selections] [(Kurt Levin's path factor)] According to social psychology, a small pebble on the road may feel like nothing, but to the subconscious mind, that one stone can be a decisive reason not to cross the road. "The minor stumbling block is the decisive reason for the failure of action!" [(Practically all social psychology studies)] However, despite numerous studies proving this fact, we continue to ignore the stumbling blocks. Restaurants are the most common example. Restaurant owner turn on their conscious mode to create menus. Then, they'd all think the same thing, "If the menu is large and varied, customers will like it, right?" However, many meaningless options for customers in subconscious mode will only become objects to instinctively avoid. Of course, there is also a way to carefully weave the selection structure... It definitely exists, but even so! A really obvious, easy solution is the 'simplification strategy'. Make it easy! In other words, make it super easy for them! Do you remember the solution Baek Jong-won always gives out first and foremost at 'Alley Restaurant'? He told people to shorten the menu. When Yahoo put everything together and overwhelmingly occupied the top spot in the market share of portals, it is thanks to the simplification strategy that Google was able to rise above it. "We'll just give you a search bar!" OK, then let's review your plans here. If you really wanted to exercise, you should have made it easy to do. However, how do your 'Weekend Workout' plans look like? There's not just one or two stones, it's practically a gravel. Take a look. When you just woke up in the morning and are in a drowsy state, haven't turned on conscious mode, you'd have to resist the urge to watch YouTube, take a shower, pick your clothes, put on makeup, cook chicken breasts, and after you find your AirPods and power bank, you still need to muster up the will to hit the gym? How would the subconscious mind, which was just lying the entire day before while watching YouTube, manage to do this every day? I assure you, if he had to rinse, pick out clothes, and put on makeup every time he exercised, Ronnie Coleman wouldn't have achieved that body of his. "Ugh, ironing is annoying." We need to make our list as simple as possible to achieve our goals. Instead of vaguely trying to catch two rabbits and just missing them both, try to catch one first. Do you want to date someone you accidentally met at the gym? Or do you want to build your body? [2. Default] I explained it in the last video too, right? [(Status quo bias, loss aversion bias, baseline bias, path of least resistance)] Default is the most powerful nudge. When you sign up for something, the worst options, such as automatically checked marketing receipts and consent to install other programs are usually left as it is by people... "I always check the box off, though." Yeah, so do I. We are not fools. Even when malicious programs are installed and the damage from spam text messages is clearly expected, no one is crazy enough to want to keep the default settings. [(Status quo bias)] However, when you think about it in reverse, you'll see that it's a very strong nudge seeing where if you don't hate it enough, you'd just leave it as it is. Well, you don't need to worry about it anyway. Because if you have decided to study, you don't need to change the default settings for studying. Right? "Obviously!" "How do you make studying as the default setting!" Hear me out. People come to the library to study and go to the gym to exercise. If you want to study, wouldn't it be better to put yourself in an environment where study is the default setting? In addition, watching other people study hard can help you synchronize yourself with them. "I have to work hard too...!" Rather than setting a tough goal like studying for 2 hours a day, you can reduce psychological resistance only by thinking about going to the library. Merely going to the reading room or gym should be considered a success. First, just go. Because that's truly the hardest thing to do. "Even if I know that, it's still hard to go..." Don't worry, there is a more effective way. 'Incorporate it into your daily life'! You combine it with the default actions you have to do every day with specific situations. "What are you talking about?" Let me give you an example. If you want to work out every day, leave your shower equipment at the gym. Don't take showers at home. If you want to study every day, leave your toothbrush or other necessities in the library. Though it may seem like nothing, reducing the resistance through simplification with the ability to control... simply put, it's an amazing method. [3. Forecast error] If you follow step 1 and 2, you will be fine for a month or two. But, don't be careless! Mistakes may happen or natural disasters may occur, humans are bound to face unforeseen circumstances. If you didn't charge your phone, or there was a typhoon, or you overslept. Or in cases of emergency, especially if it happens multiple times, even a detailed plan can be shattered in a flash. What you need in this case is the 'Error Prediction' nudge. The best example is birth control pills. There are 28 contraceptives in every pack, but 4 of them are fake pills that don't work. "Isn't that fraud?" Birth control pills are said to require a 4-day break. But if you to take a break from taking medicine, it's possible that you may accidentally forget, yes? Therefore, they've regulated it with fake medicine so you can take it every day. It's a nudge to anticipate mistakes. So, if you've understood it, let's apply the error prediction nudge to ourselves. We often believe that when an unexpected situation comes up, we can take care of it. But because converting to conscious mode is more difficult in the morning, and the ability to comprehend is lower than usual, you'd be unable to deal with emergencies. So, assuming that unexpected situations will happen, it's better to plan a scenario for each situation in advance. How'd you proceed if you oversleep? What to do when the weather is bad? Post the plan for each situation on your door and act accordingly when those things happen. In case you're unable to get any items, to avoid losing your cool and panicking, place the preparations in advance with your conscious mind. You have to understand that the you in subconscious mode, and the you in conscious mode, are both completely different persons. [4. Feedback] It is good to deal with emergencies, but wouldn't it be even better if we could stop it in advance? That method is 'Feedback'! Anyone who has driven a car will know. When there is no fuel, the warning lights up. If you don't fasten your seatbelt, the alarm beeps. There's also a beeping sound when you drive in reverse. This immediate feedback dramatically reduces mistakes. The phrase, "Have you brought you umbrella?" attached to the door of the internet cafes and karaoke spots is the best example of this. It'll be good if you also put the appropriate phrases in sync with your movements. Personally, I have to follow the morning routine I have written so I can turn off my morning alarm. It works better than I thought. [5. Incentive] Incentives are literally incentives! It means working harder if there is a short-term reward. Pretty obvious, right? It's not a nudge, it's more like classic behavioral economics. Nevertheless, The reason why incentives are included in the 6 principles of nudge is because it's an oldie but still a goodie! Because there is no greater motivation than incentives. A gift I give myself on a cheating day while on a diet is a strategy that makes good use of the reward psychology. However, this much is still weak. It's as useless as a glass hammer. [(Loss aversion status)] I mentioned in the last video that the subconscious mind is more afraid of losing something, didn't I? Disincentive rather than incentive! Damage is far more effective than reward. Now, let's take an example. "It's really easy to quit smoking if you keep doing this." "You should never smoke." Lee Mal-Nyeon, a broadcaster who has been fighting cigarettes for nearly a decade, was often criticized for his failure to quit smoking. "He failed." "Another day passed... well done..." "I kept thinking about cigarettes, so I took one." But then he made a video, "If you caught me smoking, I will give you 10 million won." After making a huge bet of 10 million won in January this year, he has since successfully quit smoking. "I don't want to be praised for continuing to quit smoking." "The fact that I put a bounty of 10 million won is more important now." "That is what drives me." Now, can you see disincentive is a very, very effective method, as much as it is a classic one. So, make sure you also make a clear loss. Make a bet with a friend. If you make a bet on how much money you'll give every time you don't go to the gym, it will be a great psychological deterrent. But, here's the thing. Honestly, there has been too many people who take bets lightly, right? In Lee Mal-Nyeon's case, he has restriction as a public figure, but it's bad if you can't keep the bet with your friends. Therefore, if you really want to do something properly and consistently, write a believable contract that will have a legal effect. After making a betting contract, then print 2 copies, and sign on them and keep one each. It's like a joke, but it's not. It is a method that is regularly introduced in books. I tried it myself, and it showed an amazing effect. "Do I have to go that far?" "It's not like you'll write it for us!" Yes, I have written it for you. [Ba dum tss] I put a link in the pinned comment. You can download it and use it. Considering all factor, I removed all the troublesome things. If you need it, please use it. [6. Mapping] The final nudge is the mapping strategy. According to the description in the book, it is a nudge that connects the outcome and to the choice. Sounds kind of complicated, huh? To put it simply, it is an anticipation strategy. Some good examples are tasting corners and game demos. Just how fun this game is, or how delicious this food is, you're trying them beforehand. Well, of course... you can't try to study or exercise beforehand. We can't live a life that has passed the exam or be in shape. Ultimately, the best we can do is to collect a lot of accurate data about the result. What will change if you study? How will others treat me if I exercise? How this will help my life? Rather than gathering a vague idea, you gather lots of detailed facts. You can read the book, or you can listen to examples around you or watch YouTube. The more persuasive the information, the better. You are not an idiot. Although sometimes can be swayed by the environment or nudges, you are a human of free will that can resist them at times. Because you are a smart person, you need to know exactly whether this will really help and why you need to do it so you can do it harder and better. Thank you for your hard work! We've covered all 6 nudge strategies! "It's more obvious than I thought it'd be." [(Host definitely bias)] Such thoughts may also occur. Or, since these methods were originally sold as individual products, maybe you've seen it somewhere...? But today, I scraped each nudge and have explained why it is useful and how it is useful. It's meaningless if you only know the simple way. You need to understand the principle to see the effect. You can also customize it to fit your situation. "Knowing the methods is good... but wouldn't it be difficult to practice?" To be honest, I don't think it's difficult if you have the will. This video is not a miraculous alchemy to create will from nothing. This video is for those who have the will but can't. I am a very lazy person by nature, so I use all of the methods listed here without missing a single one. And I'm really enjoying the benefits of it. Today, for people like myself, I've brought a really pure way to do as much as your will. Stop beating yourself up! Blame me if it doesn't work! However, if it goes well... Treat me a meal! [Book of the day / Not an ad] [Nudge - Richard Thaler, Cass Sunstein / Soft power to drive choice]