Today's Word: Heuristic

A rule of thumb or shortcut that helps solve problems or make decisions quickly.

August 07, 2025

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Heuristic (hyoo-RIS-tik) (noun): A rule of thumb or shortcut that helps solve problems or make decisions quickly—especially when facing complexity or limited information.

“A heuristic is a rule-of-thumb strategy that helps people make judgments and solve problems efficiently. But it can also lead us astray.”

— Daniel Kahneman, Thinking, Fast and Slow

In his mega bestseller, Thinking, Fast and Slow, Daniel Kahneman, world-famous psychologist and winner of the Nobel Prize in Economics, takes us on a groundbreaking tour of the mind and explains the two systems that drive the way we think.

SMARTER INSIGHT
Heuristics are mental shortcuts—fast, practical, and often necessary. But they can also bias us. Knowing when you’re relying on a heuristic helps you decide when to trust it… and when to pause and think deeper.

USE IT TODAY
Notice a decision you made automatically today. What heuristic did you use? Was it helpful—or did it oversimplify?

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MONEY

Myth: Pet insurance isn’t worth the money

Did you know that one pet health emergency can cost up to $10,000? That could put a huge strain on your savings or even force you to max out your credit cards. Protect your budget and your pet by thinking ahead and choosing a plan that works for both of you.

INVEST IN PACASO

From Italy to a Nasdaq Reservation

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