Learn: Experience-Cost Averaging, Window vs Mirror, Peak-end Rule

Read: 3 min

Hola from Buenos Aires. 

Life is like a stage show. 

Except we each are the star of our own show. We must choose where to focus our attention, aka direct the stage lighting.

We intentionally shine light only on certain parts of the stage, while dimming out the rest.  

Btw, not only are we the star of the show…we're also the light technician. 

This newsletter is your guide to optimal lighting. 

🏔️ Experience-Cost Averaging 

Dollar-Cost Averaging (DCA) is a simple investment method where you invest a fixed amount of money at regular intervals (ex: $500 every month into a retirement fund). It takes the guesswork out of investing and reduces market timing risk. 

Experience-Cost Averaging (ECA) is a term I just made up, but follows the same logic. Just applied to life experiences. Much like investments, our lives can be volatile. Rather than saying “one day maybe” we can consistently invest in experiences (fun, learning, etc) over time.

Not only does this eliminate the steep cost of never doing them... but also maximizes our return on experience (family, fun, fulfillment, learning). 

Take that family trip. Do that random improv class. 

Optimize for experiences.  

🪞 Window or Mirror? 

When giving feedback we have 2 choices: Window gazing or mirror holding. 

• Window gazing is our default mode. Just thinking from our own perspective. 

• Mirror holding requires our brains to flip a switch, and see things from the OTHER person’s perspective. (far better for feedback)

A question worth asking...what might this problem look like from the other person’s perspective? (aka hold 🪞) ​​

🌶️ Peak-End Rule

The peak–end rule is a cognitive bias impacting how we remember events.

Intense positive or negative moments (“peaks”) and the final moments of an experience (“end”) both get overweighted in our memories. 

Let's be real, most things are just meh. So what if we could add small tweaks to make them, well, AWESOME? Just by adding a lil hot sauce to spice things up a bit. 🌶️

Because, why tf not? 

Few tips to put into practice. 

• Trips → create peak moments with gifts, surprises, themes, or adventures
• Meetings → end strong with a recap, joke, or genuine connection
• Dates → plan a fun post-dinner activity or surprise 

Get creative and have fun.

Abrazos, 

Mitchell aka “peaked-too-soon”

Ps. Happiness hack