Named after Ulysses, in Homer's Odyssey.
In the story, Ulysses understood the dangers of sailing close to the Sirens, a mythical creature to which many sailors had previously met their demise.
The song of the Sirens was so enchanting that sailors could not resist following it and crashing their ships onto the rocks.
In planning his journey, Ulysses knew the danger ahead, but wanted to experience the beauty of the Sirens' song.
He instructed his sailors to tie him to the mast of the ship, while the rest of the sailors cover their ears so he could listen to the Sirens but be unable to influence the direction of the ship.
Ulysses Pact is a common term given to "commitment devices" - a decision in the present that creates barriers to future temptation. Commitment devices work best when, like Ulysses, we: (1) have a clear understanding of some future benefit (2) understand the potential temptation or risks ahead.
Insight: Locking your future actions while your mind is in the right place rather than waiting to see where your desires take you in the moment has many benefits.
Insight: A commitment device is a choice you make in the present that controls your actions in the future.
Insight: Ulysses pacts are effective for binding you to good habits and restricting bad ones.
Example: Victor Hugo locking away his clothes so that he could focus on writing.
Definition: Any arrangement where we create barriers against future temptation. Where we give ourselves no choice.
Example: Preset limit on credit card.
Example: Superannuation or 401(k).
Insight: Ulysses contracts for savings are extremely effective.
Insight: Advance planning can be useful to resist future temptation.
Insight: If-Then plans can help with self control (IF this happens, THEN I take this action).
Insight: When automatic, If-Then plans remove the effort to self control.
Insight: Ulysses pacts work well if (1) the risk of temptations can be anticipated (2) removing temptation is feasible.
Example: Piggy bank.
Example: Victor Hugo locking away his clothes so that he could focus on writing.
Insight: Ulysses pacts can improve habits by locking us into a decision.
Example: Scheduling a workout with friends reduces the chance that you will skip it.
Insight: Ulysses pacts are extremely effective for savings.
Key Insights & Principles
Habits & Personal Management
It is often more effective to commit to future actions than acting in the moment.
Commitment strategies work well if risk can be anticipated, and removing temptation is possible.
We usually act when options are limited.
Including other in our commitments is usually effective.
Restrict choices to only the right actions.
Anticipate future temptation. Overestimate their impact. Develop optimal actions when they occur.
Personal Finance
Commitment devices for savings are very effective.
