Ray Dalios Five Steps for Reaching Your Goals: Analysis and Examples

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Ray Dalios Five Steps for Reaching Your Goals: Analysis and Examples

Ray Dalio’s is another person who’s work I am studying to learn more about creating health, happiness and prosperity.

I am currently on only page 61 of his new book Principles: Life and Work (Amazon link) and I am going to share here some ideas from the book combined with a goal reaching process I heard Ray share in an interview.

I feel it is important to note that Ray did not write this book to make money. He has had a net worth in the billions for a long time. In fact, he wrote this book to share his blueprint for how he has achieved his main two goals in life: living a life with meaningful relationships and meaningful work. (psst! I really believe one of Ray’s secret techniques is meditation which he has been doing for over 40 years, more about that another time).

Okay, the five steps from Ray with some notes I have added from what I have found in his book so far.

One
Decide on your goals

For Ray Dalio, as mentioned above his goals are to live a life of meaningful relationships while doing meaningful work. He knew he needed to earn money but it was senseless to have a goal of just making money since it has no intrinsic value and he knew it cannot buy everything. No amount of money can buy meaningful relationships. Learn more about what Ray said about this on page 22 in the book Principles: Life and Work.

Two
Recognize what problems you have that prevent you from reaching your goals

Ray Dalio knew, for example, from a young age he had a terrible rote memory so that if he wanted to get what he wanted from life he needed to design tools that would help him succeed regardless of his memory issues. What are the problems preventing you from reaching your goals?

Three
Diagnose the cause of the problems

Besides rote memory issues, Ray found out that one of the causes of a personal financial crash he experienced while he was young was his belief that he was right without him actually checking to see if he was right. His ego was causing him to fail. He writes in detail about how he dealt with this on page 36 in the book Principles: Life and Work

Four
Design a solution to eliminate the problem.

Ray found out that he needed to find ways to find out how he could verify if he was right or not in his business decisions. So he sought out the smartest people who disagreed with him and tested his ideas against what they believed. Once he had a solution he systematized the ideas he learned into principles to use again and again more details on page 36 of Principles by Ray Dalio.

Five
Move forward to results.

Once Ray knew he had tested and found his principle to work he would note the actions into formulas which now have a fashionable word used to describe them. We call formulas that work to help us algorithms. This is referred to on page 40 of Principles: Life and Work by Ray Dalio

Ray says repeat these steps as necessary and modify the formulas as necessary over time.

*** The real key behind his principles is that they take the emotion out of the decision and so many times as humans we make business and personal decisions based on emotions and this helps us frequently mess up what we are doing.

Well, I am stopping writing this article right now because I want to get back to reading Ray’s book. Sure it may read like I am promoting Ray’s book and I am because I am learning from it. I recommend you get yourself a copy here is the amazon link Principles: Life and Work

Enjoy a wonderful day,

David