Daily Dispatch

Ray Dalio’s 5-Step Process to Get What You Want Out of Life

Raymond Dalio is an American billionaire investor, hedge fund manager, and philanthropist. Dalio is the founder of investment firm Bridgewater Associates, one of the world’s largest hedge funds. As of January 2018, he is one of the world’s 100 wealthiest people, with a net worth of 17 billion (USD).

Toward the end of 2017, Dalio released a book titled ‘Principles: Life and Work’, which is just that, a collection of his ever-growing list of principles he has used for success in both his personal and working life. Here’s a short synopsis of the book:

“Ray Dalio, one of the world’s most successful investors and entrepreneurs, shares the unconventional principles that he’s developed, refined, and used over the past forty years to create unique results in both life and business—and which any person or organisation can adopt to help achieve their goals.”

One of the chapters I thought was most practical, was Dalio’s 5-step process to get what you want out of life. Below, I’ve shared the five steps in their purest form, which he goes on in the chapter to dissect and analyse each in incredible detail.

Enter Ray:

The personal evolutionary process takes place in five distinct steps. If you can do those five things well, you will almost certainly be successful. Here they are in a nutshell:

1. Have clear goals.
2. Identify and don’t tolerate the problems that stand in the way of your achieving of those goals.
3. Accurately diagnose the problems to get at their root causes.
4. Design plans that will get you around them.
5. Do what’s necessary to push these designs through to results.

First, you have to pick what you are going after — your goals. Your choice of goals will determine your direction. As you move toward them, you will encounter problems. Some of those problems will bring you up against your own weaknesses. How you react to the pain that causes is up to you. If you want to reach your goals, you must be calm and analytical so that you can accurately diagnose your problems, design a plan that will get your around them, and do what’s necessary to push through to results. Then you will look at the new results you achieve and go through the process again. To evolve quickly, you will have to do this fast and continuously, setting your goals successively higher.


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