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The Unorthodox Therapist · Jul 12, 2026

The Difference That Makes a Difference

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Jake Eagle · The Unorthodox Therapist

For more than twenty years I’ve argued against reducing life to binary choices. We seem to have an insatiable appetite for dividing the world into opposites: right or wrong, good or bad, success or failure, friend or enemy. The more quickly we can label something, the more convinced we become that we’ve understood the person, the situation, or the experience.

One of my favorite definitions of intelligence comes from Gregory Bateson, who described it as the ability to make finer and finer distinctions. I love that definition because it points in exactly the opposite direction from the world we seem to be creating. Intelligence recognizes nuance, context, and subtlety. It remains curious long after certainty has stopped asking questions.

Bateson is also remembered for another elegant idea. He described information as a difference that makes a difference. I’ve often thought the same principle applies psychologically. Some distinctions help us think differently without fundamentally changing how we live. Every once in a while, however, we encounter a distinction that fundamentally reorganizes the way we understand almost everything that follows. Over more than thirty years as a psychotherapist, I believe I’ve found one.

I think there is another reason I resist binary thinking. It has to do with how our brains work. When we perceive danger—whether the threat is real or imagined—our nervous system has to answer a very simple question as quickly as possible: Am I safe or am I unsafe? This isn’t the moment for subtlety or careful reflection. It’s the moment for rapid categorization so that, if there is a threat, I know whether to fight, flee, or freeze, all of which depend upon making immediate distinctions because hesitation can be costly.

That makes perfect sense when we’re confronted with genuine physical danger. My concern is that we often carry this same habit of mind into our psychological lives. The more readily we reduce people, situations, and experiences to simple categories, the more we may be encouraging our brains to organize experience through the lens of threat rather than curiosity. Binary thinking may not simply reflect our threat response—it may actually reinforce it.

Having said all that, I’m about to do exactly what I’ve been arguing against.

I’m going to reduce something enormously complex to a single distinction.

Not because I believe reality can be neatly divided into two categories, but because after more than thirty years of working with individuals and couples, I’ve never encountered another distinction that more consistently makes possible greater ease in relationships, less unnecessary conflict, greater adaptability, deeper curiosity, and a growing sense of inner security.

Here’s the distinction that, more than any other I’ve encountered, has changed the way I understand human relationships.

We can relate to our experience in one of two fundamentally different ways: from the outside in, or from the inside out.

The outside-in way of relating to my experience assumes that what happens around me determines what happens within me. Other people make me angry. Criticism hurts me. Praise makes me feel worthwhile. Success gives me confidence. Failure diminishes me. My emotional life appears to be driven primarily by external events and other people.

When I relate to my experience this way, an entire psychological world follows. If my inner experience is largely determined by what happens outside me, then I have little choice but to monitor, predict, and even try to control the outside world. I become increasingly preoccupied with what others think of me, whether they approve of me, whether they understand me, whether they are treating me fairly, and whether they are likely to disappoint me. My attention naturally turns to managing circumstances because that is where I believe the causes of my experience lie.

The inside-out way of relating to my experience begins from a different place. It recognizes that while I cannot control many events in my life, I remain deeply involved in shaping my experience of them. I participate in the meanings I make, the conclusions I draw, the emotions I cultivate, and the stories I tell myself. This isn’t about denying that other people and circumstances influence me. It is about recognizing that influence is not the same as authorship. My experience is not something that simply happens to me. It is something I actively participate in.

When I relate to my experience in this way—from the inside out—I no longer perceive that my identity is under constant threat. Curiosity becomes easier because I don’t need every interaction to validate or protect me. Adaptability becomes possible because I’m less invested in defending my interpretations. Responsibility ceases to feel like blame and becomes a source of freedom because it continually invites me to examine how I make meaning of—and participate in—the experience I am having.

The essential difference between these two ways of relating isn’t the events we experience. It’s the meaning we make of those events. That meaning shapes the experience we have—including our thoughts, our emotions, and ultimately the words we choose.

At this point you might reasonably wonder whether I’ve contradicted myself. I began this article by arguing against binary thinking, and now I’ve introduced a distinction that appears to be binary.

I don’t think I’ve contradicted myself.

I’m not suggesting that outside-in is wrong, nor do I believe that inside-out is always preferable. Everything depends on what we’re trying to accomplish.

If our aim is to defend ourselves, convince someone we’re right, or gain greater control over other people, outside-in may seem perfectly reasonable. But if we’re seeking more harmonious and nourishing relationships, less unnecessary conflict, greater curiosity, more adaptability, and a deeper sense of inner security, I’ve never encountered another distinction that has proven more valuable.

This raises an obvious question: How do we become aware of the way we’re relating to our experience?

My experience has been that language provides one of the clearest windows into the meanings we’re making. The words we choose often reveal those meanings before we’re consciously aware of them. That’s why we practice inside-out language. It helps us notice the meanings we’re making before they become so familiar that they simply feel like reality.

When I say, “He upset me with his criticism,” my language reflects an outside-in way of relating to my experience.

When I say, “I’m upsetting myself in response to what I perceive as his criticism,” I’m not merely choosing different words. I’m making visible a different way of relating to my experience. One statement locates the source of my experience outside me. The other invites me to examine the meaning I’m making and the experience I’m creating as a result.

The same is true of the language of judgment. Expressions such as, “You’re disrespectful,” sound objective, as though we are reporting facts about reality. Compare that with “I’m interpreting what you just did as disrespectful.” The first statement presents a conclusion as though it were an objective fact. The second reveals the subjective process through which that conclusion was reached. Outside-in language encourages us to mistake our experience for reality itself. Inside-out language reminds us that we’re always speaking from the way we’re relating to our experience, not from reality itself.

This insight is one of the foundations of SAGE.

The irony is that I began this article criticizing binary thinking, only to introduce a distinction of my own. The difference, as I see it, is that most binary distinctions bring inquiry to an end. They encourage us to decide. This distinction invites us to begin exploring. It isn’t asking us to divide the world into two camps. It simply invites us to ask a different question:

Am I relating to this moment from the outside in, as though the world is creating my experience?

Or am I relating to it from the inside out, noticing how I am participating in the meaning I make of what I notice?

Gregory Bateson believed that intelligence involves making finer and finer distinctions. I agree. Yet every so often we encounter a distinction that doesn’t merely add another idea to our collection. It reorganizes the way we understand ourselves, our relationships, and the conversations we have every day.

For me, the distinction between relating to my experience from the outside in or from the inside out has been exactly that.

It has been a difference that continues to make a difference.

If you’d like to go deeper into the world of SAGE, we invite you to download our recent paper, The Overview Effect in Psychology:

SAGEPROCESS.COM

If you download our recent paper, you are welcome to join our SAGE Zoom conversations, where we explore how to live a SAGE life every day.

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