4 Reasons Why Good People Make Bad Decisions

4 Reasons Why Good People Make Bad Decisions

By Mark Wager

We’ve all seen people make decisions that are obviously very bad and clearly not in their best interest. During these times, we wonder, “What on earth were they thinking?” As a Leadership and mindset coach, I frequently encounter these patterns in people’s lives, and I see how these bad decisions often come down to specific psychological factors. In this article, I want to share with you four key reasons why good people tend to make poor decisions: cognitive dissonance, present bias, ego depletion, and social influence – and, more importantly, what can be done about it.

Cognitive Dissonance: The Inner Conflict That Skews Judgement

One reason people make poor decisions is cognitive dissonance. This occurs when there’s a conflict between our beliefs and our actions, causing mental discomfort. To ease that discomfort, we often rationalise or justify decisions that may not align with our best interests. This is powerful because, once we’ve made a choice, our minds want to stay consistent with it – even if it wasn’t the best choice to begin with.

Imagine a person who decides to start a new diet for better health. They believe it’s important, but soon after, they find themselves reaching for fast food. Instead of reconsidering their behaviour, cognitive dissonance can lead them to downplay the diet or make excuses for their actions, such as saying, “I don’t have time to cook” or “It’s just one meal.” They want to feel consistent with their initial choice to diet, but they don’t want to change their immediate behaviour, leading to a conflict.

Recognising cognitive dissonance can be powerful. It’s about developing the honesty to say, “I made the best choice at the time, but I need to adjust.” It’s challenging to admit when we’ve taken the wrong approach, but it’s often a necessary step towards personal growth.

Present Bias: The Allure of Instant Gratification

Present bias is another culprit behind poor decision-making. It’s our tendency to value immediate rewards over future benefits, even when we know that the future benefits would serve us better. This is why we might choose a lazy evening watching TV instead of an early morning workout. While we know the long-term benefit of exercising, the immediate comfort of staying in feels more appealing.

For example, if someone wants to save money, present bias can be an obstacle. The person might have every intention of building their savings, but when they’re in a store, that urge for a “little treat” becomes hard to resist. Rather than thinking about the long-term satisfaction of building a safety net, the immediate pleasure of buying something small wins out.

Mindfulness is a useful tool here. Being aware of present bias allows us to pause and consider, “Is this choice really helping me in the long term, or am I just looking for instant gratification?” When we pause to ask this, we gain the power to make choices that better align with our goals.

Ego Depletion: When Self-Control Wears Thin

Self-control isn’t infinite; we only have so much to go around. Psychologists call this ego depletion, meaning our mental reserves for resisting impulses can run low. As we make decisions throughout the day, especially challenging ones, our ability to exercise self-control can diminish. The more self-control we use up, the less we have for future choices, which explains why people often make worse decisions at the end of a long, demanding day.

Think about someone who’s had a stressful day and comes home with the best intentions to eat healthily. By the evening, their mental resources may be so drained that the idea of cooking seems overwhelming, and they end up ordering takeaway instead. They may regret the choice later, but at the time, their depleted self-control makes it harder to resist the easier option.

To combat ego depletion, it’s essential to recognise when our self-control is running low. If we know we’re more likely to make poor choices when we’re mentally drained, we can plan our days accordingly, setting up routines or preparing food in advance. Simple acts of self-care – taking breaks, getting enough sleep, and even practising mindfulness – can help replenish our mental reserves, making it easier to make healthier choices.

Social Influence and Conformity: The Power of the Group 

People are powerfully influenced by social cues and group behaviour. This influence is often unconscious, and it explains why even capable, independent thinkers can sometimes make decisions that aren’t in their best interest. In psychology, this tendency to align with others, even if it means compromising personal values or common sense, is known as conformity.

Imagine you’re at a social gathering where everyone is drinking, even though you’d planned to avoid alcohol. The pressure to join in can be immense, especially if you don’t want to be the odd one out. Rather than declining, people often go along with the group, even if it means doing something that doesn’t align with their intentions. This isn’t a weakness; it’s a natural human response to social pressure.

To navigate social influence, it helps to cultivate self-awareness and confidence in our values and choices. When we’re aware of social pressure, we can pause and ask, “Is this truly what I want, or am I just trying to fit in?” Developing this awareness helps us stick to our own goals, even when group expectations pull us in a different direction.

Building Better Decision-Making Habits

Bad decisions don’t make us bad people – they make us human. The key is to understand the psychological forces at play and to build strategies to counteract them. By recognising cognitive dissonance, we can practise humility and adjust our course when needed. By understanding present bias, we can prioritise long-term goals over immediate comfort. Awareness of ego depletion can help us plan our day and take care of our mental energy for better choices. Finally, understanding social influence can empower us to stay true to our values and make independent choices.

In my work as a Leadership and mindset coach, I’ve seen how transformational it can be when people take control of their decision-making habits. With self-awareness and mindfulness, we can all make choices that truly align with our best interests – not just in our professional lives but in every area of our lives.