Principles 2

"Use the 5-Step Process to Get What You Want Out of Life"

Dalio breaks down the elements of his first Principle, "Embrace Reality and Deal with It" into five action steps, describing them as a feedback loop. The steps are:

  1. "Have clear goals."

  2. "Identify and don’t tolerate the problems that stand in the way of your achieving 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."

These five steps will be the subsections of Principle 2, but the big takeaway here is the importance of iterating fast.

Create a goal. Figure out how to accomplish it. Create a new goal.

This process is best seen as a feedback loop, which when executed in succession leads to continual growth:


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