Coaching practices for How to Think About Big Numbers

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Does this sound like the set of challenges you might be facing?

  • I read "thousands affected" and feel a pang, then "hundreds of thousands" and feel that exact same pang
  • Someone asks me how many of something there are and my mind just goes blank
  • I have to put a price on what I’m offering and the number sounds huge said out loud on its own
  • Long strings of digits
  • My answer came out wildly off and I can feel that it’s wrong but can’t spot where

Practices that may help

  1. Translate scale into numbers before you respond
    Before reacting to any quantity-based problem, convert the scale into a concrete number you can compare.
    Scope Insensitivity: Why Scale Doesn’t Change Your Feelings
  2. Decompose the unknown into knowable sub-problems
    Break the question you cannot answer directly into smaller questions you can.
    Fermi Estimation
  3. Reframe a cost against a larger, legitimate reference point
    A price or investment looks smaller when contrasted with a larger relevant figure.
    The Contrast Principle, Made Practical
  4. Encode numbers with the Major System
    Convert digits to consonant sounds, then flesh out into memorable words or images.
    Peg System Mnemonics, Made Practical
  5. Check units and scales for consistency
    Catch order-of-magnitude errors by ensuring your units are consistent across the estimate.
    Fermi Estimation
  6. Decompose complex questions into sub-questions
    Break a hard forecasting question into smaller, estimable pieces and aggregate them.
    Superforecasting
  7. Extend to the Person-Action-Object (PAO) system
    Assign a person, an action, and an object to each two-digit number to compress large sequences.
    The Major System: Encode Numbers as Words
  8. Evaluate a cost against your whole picture, not its tiny bucket
    A small bucket makes a fixed cost feel huge or trivial depending on framing, not reality.
    Mental Accounting, Made Practical
  9. Calculate the opportunity cost of a recurring habit
    Convert any regular expense into its 10-, 20-, and 30-year invested value.
    The Latte Factor: Small Spending and the Cost of Habit
  10. Sanity-check against known extremes
    Test your estimate against the clearly too-high and too-low bounds to calibrate your range.
    Fermi Estimation

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