The Power of Knowledge,

Understanding, and Wisdom to

Better Your Decision-Making Skills
“‘In pursuit of knowledge, everyday something is gained. In pursuit of wisdom, everyday
something is dropped.” — Lao Tzu

Over the past few years, I have noticed an increased desire in my own life to seek knowledge,
understanding, and wisdom.

For as long as I can remember, I have always had the desire to gain knowledge, continue to learn
and grow, and improve my skills.

Knowledge, understanding, and wisdom are beautiful qualities to possess to live a noble life.

We go to schools to gain knowledge, hold on to our convictions to achieve wisdom, and reflect
on our own doings to achieve a better understanding.

There is a myth that gaining knowledge is the best solution to the problems in our lives.

The world is now on information overload; just look at the amount of information there is on the
internet and in published books.

However, knowledge without the meaning or understanding of how to apply it can bring us to
the place I call, “all the gear, but no idea”.

To improve your ability to make decisions and negotiate, I will break down the differences
between knowledge, understanding, and wisdom.

“Knowledge is information, understanding is comprehension and wisdom is application.”

— Myles Munroe

What Is Knowledge?

Knowledge is the accumulation of facts and data through studying, research, investigation,
observation, and even experiences.

It’s being aware of something and having the details to know. People with “knowledge” are able
to collect, remember, and access information
It is possible to have the knowledge, but have a complete lack of understanding and wisdom.

A person might have the facts, but they don’t know what the information means or what to do
next with it.

For example, knowledge can help you become more intelligent, earn higher school grades, have
a more profitable business, have a healthier life, build lasting relationships, and survive most of
life’s challenges.

What Is Understanding?

Understanding is the capability and capacity to discern and make decisions about which aspects
of the knowledge they have collected are true.

Understanding is the ability to translate meaning from facts and apply it.

People with “understanding” are able to mine meaning out of information. They are able to “see
through” the facts to the dynamics of the “what,” “how,” and “why.”

Understanding is like a camera lens that brings the facts into focus and enables someone to
produce principles.

For example, understanding can help you become a more practical person. Since it is the ability
to put your knowledge and wisdom into action, it will help you walk your talk and achieve actual
results.

Understanding will help you execute your choice to apply your intelligence, honor, profit, health,
love, and strength the right way.

What Is Wisdom?

Wisdom is the understanding of the facts and principles and then providing the application as to
what to do next.

Wisdom is also being able to learn from past experiences and thus gain an understanding of
something.

With this gained wisdom, they can choose not to make the same mistakes over and over again.
Wisdom allows someone to evaluate what’s right, true, and lasting.

People that gain “wisdom” know what concepts or truths to apply in a given situation.

For example, wisdom can help you choose to apply your intelligence, honor, profit, health, love,
and strength the right way. In other words, wisdom is choosing to use your knowledge or power
in a better way.
How to Better Your Decision-Making Skills?
“The key to good decision making is not knowledge. It is understanding. We are swimming
in the former. We are desperately lacking in the latter.” — Malcolm Gladwell

Every day you make thousands of decisions. Most of them are small and forgotten nearly as
quickly as they’re made.

It is important to understand the process of decision-making; knowing how and why you make
smart decisions, with the ultimate objective of achieving more successful outcomes.

Rather than making different decisions, it is important to rethink your beliefs by gathering new
information so that there is a solid change in approach to decision-making, which often results in
superior outcomes.

Better knowledge, understanding, and wisdom lead to better decisions and outcomes. It really
doesn’t have to be complicated.

There are three important parts of the process of decision-making:

1. Discerning (Doing The Research)

Attempting to discern what the best decision would be for you and your situation. You are going
to do your due diligence to be as informed as you can regarding your options — and what the
consequences of different decisions could be.

2. Courage (Making The Decision)

After all the thinking, processing and discerning has taken place, it’s time to make a choice. It’s
time for a decision. This is where courage comes into play; especially if the discernment process
has led you to a place that will require you to make a change. It takes courage to decide to make
a change.

3. Action (Doing What Is Required)

After making the decision, pulling the trigger to actually do what is required — raises the quality
bar requiring greater skill for each task. For your decision to be valid, you must take action and
put it into practice.

We need knowledge, wisdom, and understanding to have better decision-making skills.

You cannot have wisdom without knowledge, you cannot have understanding without wisdom,
and you cannot have insight without understanding.

We have to recognize their differences not to separate them but to learn how to connect them and
walk the right path towards life’s ultimate achievement.