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The Financial Samurai Podcast

The Confidence Map And Making Better Sense Of Our Decisions With Peter Atwater

Aug 15, 2023
Peter Atwater, author of The Confidence Map and adjunct professor at William & Mary, discusses the role of emotions in decision making. He introduces the confidence map, which plots experiences across four boxes - comfort zone, passenger seat, stress center, and launch pad. The speakers explore the link between confidence and giving up, the impact of abundance and scarcity in investing, and reflect on growing up in different countries. They also discuss the impact of the horizon map on decision-making and confidence.
42:44

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Podcast summary created with Snipd AI

Quick takeaways

  • The Confidence Map consists of four quadrants that represent different mixes of certainty and control, including the comfort zone, passenger seat, stress center, and launchpad, and individuals can move between these quadrants depending on different subject matters and moments in life.
  • Confidence is crucial in inspiring individuals to think about and plan for the future, and low confidence can hinder their ability to learn more about personal finance and investing.

Deep dives

The Confidence Map: Visualizing Confidence

The Confidence Map is a framework that aims to visualize confidence, which is often talked about but not deeply understood. It consists of two critical feelings: certainty and control. Certainty refers to knowing that things are predictable and that we can anticipate what's ahead, while control means feeling prepared with the tools and resources for success. The Confidence Map places certainty on the x-axis and control on the y-axis, resulting in four quadrants that represent different mixes of these two factors. These quadrants include the comfort zone (high certainty, high control), passenger seat (high certainty, low control), stress center (low certainty, low control), and launchpad (high control, low certainty). The goal for most individuals is to be in the comfort zone, but it's important to recognize that people can move between different quadrants depending on different subject matters and moments in life.

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